A pair of money managers who once co-owned the New York Islanders hockey team have been charged by federal prosecutors with treating $550 million in client investments like their own "personal piggy bank," reports Reuters. Paul Greenwood, 61, and Stephen Walsh, 64, managing general partners of WG Trading Co. in Connecticut, spent a decade blowing up to $550 million of clients' funds on lavish lifestyles, racehorses, mansions and expensive mohair teddy bears, according to federal authorities.
The pair oversaw investments for top institutions like Carnegie Mellon University. A Manhattan judge yesterday set bail at $7 million, and gave the freed men two weeks to come up with it. The SEC has frozen their assets. The men had no comment on the case.