HedgeCo news - A Colorado Springs pastor found guilty in 2008 of hedge fund fraud lost his appeal in a Court yesterday according to the Colorado Springs Gazette.
The pastor, Douglas Alan Scott, was charged with taking part in a $12 million hedge fund scam, more than 400 investors were solicited from his parish for a fraudulent hedge fund, XL Capital Partners Inc.
The conviction was upheld in a 14-page, three-judge panel, who unanimously upheld the jury’s guilty verdict on charges of theft and securities fraud, the paper reported.
The appeal was held because the defense alleged flaws in the jury instruction, the evidence presented and in the prosecution's closing arguments. The panel dismissed the arguments, saying the errors were insignificant.
Scott is sentenced to 15 years probation and ordered to pay $1.4 million in restitution.