CHICAGO (CN) – The SEC and CFTC say Stephen Walsh and Paul Greenwood stole $553 million from commodity pool customers – including pension plans and universities. The agencies also sued Westridge Capital Management, and WG Trading Investors, claiming the defendants swiped as much as $553 million of the $667 million that clients invested, and used it to buy “multi-million dollar homes, a horse farm, cars, horses, and rare collectibles such as Steiff teddy bears.”
The SEC filed an emergency enforcement action to stop what it calls an “egregious investment fraud.” It claims Greenwood and Walsh “used client money invested n WGTI as their personal piggy bank gave some of the money to their wife and ex-wife, and refused to respond to the University of Pittsburgh’s request about what happened to its $21 million.
Greenwood, 61, lives in North Salem, N.Y., Walsh, 64, in Sands Point, N.Y. The SEC and Commodity Futures Trading Commission sued them in separate federal complaints.
Steiff teddy bears have sold for $15,000 and more. They’re really nice teddy bears.