Bizjournals.com – Three Colorado Springs men have been arrested in connection with an alleged hedge fund scheme that defrauded about 350 people out of a total of approximately $7.5 million, Colorado’s Attorney General John Suthers and Securities Commissioner Fred Joseph said Tuesday.
Arrested were Hamilton Alan Bird, 42; David Edward Newton, 56; and Douglas Alan Scott, 46, all of Colorado Springs. A statewide grand jury indicted the three men on May 12 in El Paso County District Court.
Bird then offered limited partnership interests in the Vision Fund to investors. Private placement memorandums that Bird distributed to clients said that XL Capital was entitled to 20 percent of the net profits during each fiscal period as a “performance fee.”
