Ponzi Scheme Results in Guilty Plea from Hedge Fund Manager
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 collectible 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.
The 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.