Ponzi scheme leads to a former
hedge fund manager pleading guilt to criminal charges. The charges allege that the
suspect and his partner stole millions of dollars from four university
According to reports, Paul R. Greenwood and his partner, Steven Walsh,
are suspected of using approximately $900 million for a personal fund.
The investment scheme offered university endowments low risks and
high return investment opportunities.
Reports allege that the pair took $65 million dollars from the University
of Pittsburg, $49 million from Carnegie Mellon University, $15 million
from Bowling Green State University and $10 million from Ohio Northern
University. They have been accused of spending at least $160 million for
personal expenditures that include mansions, rare books and horses. They
have also been accused of spending $80,000 on a collectable teddy bear.
Mr. Walsh has pled not guilty to charges against him for his role in the
investment scam. However, Mr. Greenwood is expected to testify against him.
Chronicle For Higher Education has reported that Mr. Greenwood’s assets are expected to be auctioned
off to help reimburse some of the investors.
Mr. Greenwood is expected to be sentenced in December. He faces up to
85 years in prison and may be forced to pay millions of dollars in fines.