Alan Bond was convicted today by a federal jury in New York of running a trading scheme that cheated two pension funds and an investment adviser out of $56 million. Mr. Bond, president and chief investment officer of Albriond Capital Management, was convicted on three counts of investment advisory fraud and three counts of wire fraud. The jury took less than four hours to reach its verdict.
Federal prosecutors said Mr. Bond charged unprofitable securities trades to the accounts of three clients — Amalgamated Transit Authority Local 725, Birmingham, Ala.; Old Dominion Disability & Retirement Allowance Plan, Richmond, Va.; and Chapman Capital Management Inc., Baltimore — but kept the benefits of many of the profitable trades for himself. The two pension funds lost two-thirds of their value, while Mr. Bond’s investments posted a 5,000% return, prosecutors said.
The judge in the case set sentencing for Sept. 9. Mr. Bond could receive up to 45 years in prison.
