NORTH TEXAS (CBSDFW.COM) – In addition to having to pay nearly $3.4 million in restitution, a Colleyville man has been sentenced to 15 years in federal prison for running a wind farm investment scam.
David Lyman Spalding was also ordered to forfeit the proceeds of the sale of his Colleyville home, totaling more than $160,000.
During trial prosecutors said Spalding had operated the scam for at least eight years and raised some $3.7 million from 97 investors in 11 states.
The 62-year-old lied to investors, telling them he would use their money to buy promissory notes in two wind-based energy companies, when in fact he diverted the funds for his personal use. Spalding used the money to buy real estate and take long international trips.
Even after filing for bankruptcy in 2009 Spalding continued to solicit investors, at that time saying the money would be used to build infrastructure for renewable energy projects. He also explained that management changes at the company were for business purposes when in fact the staff had quit becasuse they hadn’t been paid.
Spalding has been in federal custody since July 2015.
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