The Colorado Attorney General’s office obtained an indictment from the Statewide Grand Jury against a Colorado man suspected of violating Colorado securities fraud laws – while being prosecuted in an unrelated securities fraud case.
The indictment said that Hamilton Alan Bird operated a EquityFX Inc., based in Nevada, which sought consumers on foreign exchange currency trading investments, promising high rates of return. Bird used much of the investment money to pay other investors, to show false profits, and for personal expenses, according to AG’s office.
Bird took up to $100,000 from individual investors – in El Paso and Weld counties, and from investors in Arizona, California, Oklahoma, Texas, New Jersey and Illinois, between January 2006 and September 2008, collecting about $690,000, according to the indictment.
“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,” Attorney General John Suthers said in a statement. “We look forward to presenting our case in Colorado Springs.”
On March 14, 2008, Bird pleaded guilty to one count of securities fraud, a class-three felony, and one count of theft, a class-three felony, in the Office of the Attorney General’s case. During September 2008, an El Paso County division court sentenced him to 24 years in prison. During May 2007, a Denver District Court entered a $12.6 million judgment and injunction against Bird as a result of the Colorado Division of Securities case.
Bird is suspected of failing to make proper disclosures to investors, and he failed to disclose that the Office of the Attorney General had obtained an indictment against him alleging securities fraud on May 12, 2006, and that Colorado Division of Securities had filed a lawsuit against him on Feb. 3, 2005, for violations of the Colorado Securities Act.