Wed, May 6, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Two tales of hedgie fraudsters: One admits guilt, the other incur second indictment

Monday, March 22, 2010
Oplaesque Industry Update - Two men who operated independent Ponzi schemes are facing up to a combined total of 44 years imprisonment for defrauding their clients more than $24m combined, various media reports said. The case of Hamilton Alan Bird, 46, of Colorado Springs is very interesting. In a 2008 case that the Attorney General brought against him for defrauding investors in his XL Capital hedge fund, Bird pleaded guilty to one count of securities fraud, a class-three felony, and one count of theft, a class-three felony said Examiner.com.

For this, an El Paso County District Court sentenced him in September 2008 to 24 years in prison. He is also facing an additional 12 years behind bars for the new indictment.

But the Colorado Attorney General’s Office was surprised to learn that in the midst of these legal proceedings for his prior fraudulent behavior, Bird allegedly accepted up to $100,000 from investors in El Paso and Weld counties, Arizona, California, Illinois, New Jersey, Oklahoma and Texas and collected some $690,000, to finance his defense in the XL case.

He was indicted last Tuesday the second time for running this second fraud, reported Tajikistannews.net.

“This case is remarkable not only for its breadth and the number of investors affected, but also because Mr. Bird perpetrated a portion of this fraud while criminal proceedings were pending against him in a securities fraud case brought by the Attorney General’s Office,” Colorado Attorney General John Suthers was quoted as saying.

In Philadelphia, 58-year-old Michael Alexander of Villanova, who posed as hedge fund manager, pleaded guilty to two counts of wire fraud and one count of money laundering for enticing his clients to trust him with their money, said MSN.com.

According to the Dailyme.com, Alexander could face up to 97 months in prison. U.S. District Judge Timothy J. Savage set sentencing for June 16. He was released on $50,000 unsecured bond and ordered not to travel outside the U.S.

More than $407,000 in cash has been seized from two Alexander trading accounts. As part of the guilty plea, Alexander has also agreed to proceeds from the sale of three properties he owns on North Spring Mill Road in Villanova, including the seven-bedroom, five-bathroom mansion he lives in.

Precy Dumlao

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Avenue Capital raises $700m for new energy hedge fund[more]

    Komfie Manalo, Opalesque Asia: Global hedge fund Avenue Capital Group, which manages $13bn in assets as at end March, reported that it raised an additional $700m for a new energy fund that it plans to launch in May. Avenue Ca

  2. SEC charges funds of hedge funds Alpha Titans, executives, and auditor for improper expense allocations[more]

    Update: Please note the important updated information at the end of the article.The Securities and Exchange Commission today announced charges against a Santa Barbara, Calif.-based hedge fund advisory firm and two executives involved in improper allocations of fund assets to pay undisclose

  3. Opalesque TV: Aequam Capital: Asset management industry will be mainly quantitative going forward[more]

    Benedicte Gravrand, Opalesque Geneva: Before starting his boutique in 2010, Arnaud Chretien, co-founder and CIO of Aequam Capital, worked ten years as a market trader and 18 years as a quantitative and systematic fund manager for Soc

  4. Class-action lawsuit accuse hedge fund Standard General of holding American Apparel hostage[more]

    Komfie Manalo, Opalesque Asia: A shareholder class-action suit filed on Wednesday accused New York-based hedge fund Standard General of holding American Apparel hostage. It would reportedly reap huge benefits if the clothing company declared bankruptcy. Standard General is the controlling sto

  5. Aberdeen Asset Management suffers high emerging market outflows[more]

    From FT.com: Investors withdrew billions of pounds from Aberdeen Asset Management as money continued to drain from Europe’s largest independent investment group because of worries over emerging markets. Net outflows for the six months to the end of March rose to £11.3bn, higher than market expectati

 

banner