Feds: Swindlers Blew $500M on Horses, Houses, Teddies

Another day, another fraud casee
By Rob Quinn,  Newser Staff
Posted Feb 26, 2009 4:52 AM CST
Feds: Swindlers Blew $500M on Horses, Houses, Teddies
Paul Greenwood exits Manhattan Federal court after being released on bail yesterday.   (AP Photo/ Louis Lanzano)

(Newser) – 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.

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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.
(Read more New York Islanders stories.)

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