Greenwich Time Managing Editor Bruce Hunter Had Better Get MOOOOOVING......CattleNetwork.com, KS
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today charged Stephen Walsh of Sands Point, New York, and Paul Greenwood of North Salem, New York, with misappropriating at least $553 million from commodity pool participants in connection with entities they owned and controlled, such as Westridge Capital Management, Inc., WG Trading Investors, LP, and WGIA, LLC. The defendants’ alleged misappropriation was uncovered during an audit by the National Futures Association.
CFTC is Seeking a Court Order Freezing Assets and Preserving Records; Additional Criminal and Civil Actions Filed.
The CFTC’s complaint charges Walsh and Greenwood with futures fraud and misappropriation of pool funds. In conjunction with the CFTC’s filing of the complaint today in the United States District Court for the Southern District of New York, the CFTC is seeking a statutory restraining order freezing defendants’ assets and preserving records.
At the same time, the office of the United States Attorney for the Southern District of New York filed a criminal complaint against Walsh and Greenwood, and the Securities and Exchange Commission filed a civil action against Walsh, Greenwood, and others.
According to CFTC Acting Director of Enforcement Stephen J. Obie, “The coordinated efforts of multiple federal regulators resulted in uncovering and ending this egregious fraud. Defendants treated investor money-- some of which came from a public pension fund-- as their own piggy bank to lavish themselves with expensive gifts. The public can rest assured that their nation’s commodity futures regulator is pursuing every avenue to locate and eliminate crooked commodity professionals.”
The CFTC complaint alleges that, from at least 1996 to the present, Walsh and Greenwood fraudulently solicited approximately $1.3 billion from individuals and entities through Westridge Capital Management, WG Trading Investors, LP, and other entities. The complaint charges that the defendants defrauded victims by falsely depicting that all pool participants’ funds would be employed in a single investment strategy that consisted of index arbitrage. However, pool participants’ funds were transferred to another entity from which Walsh and Greenwood siphoned funds, according to the complaint.
According to the complaint, to cover-up their misappropriation of pool participants’ funds, Greenwood and Walsh manufactured promissory notes to present the appearance that pool participants’ funds had been loaned to them.
Walsh and Greenwood allegedly misappropriated approximately $553 million in pool participants’ funds. More than $160 million was used for Walsh and Greenwood’s personal expenses, including purchasing rare books, horses, Steiff teddy bears for as much as $80,000, and a $3 million residence for Walsh’s ex-wife.
Efforts are ongoing to account for and locate pool participant funds.
Five Relief Defendants Also Named
In addition, Westridge Capital Management Enhancement Funds Inc., WG Trading Company LP, WGI LLC, K&L Investments, and Janet Walsh are named in the complaint as relief defendants because they received funds as a result of defendants’ fraudulent conduct and have no legitimate entitlement to those funds.
In the continuing litigation, the CFTC seeks restitution, disgorgement, civil monetary penalties, and permanent injunctions against further violations of the federal commodities laws and against further trading.
The CFTC greatly appreciates the assistance of the National Futures Association, the office of the United States Attorney for the Southern District of New York, the Federal Bureau of Investigation, and the Securities and Exchange Commission.
The following CFTC Division of Enforcement staff members are responsible for this matter: Patricia Gomersall, JonMarc Buffa, Joseph Rosenberg, Peter Haas, Paul Hayeck, and Joan Manley.
COMMENT:
Could Someone From Hearst Newspapers Please Help Greenwich Time Managing Editor Bruce Hinter Get Out Of His Self Induced Coma And Tell Him That There Are Over 100 News Articles On The Web About These Two Greenwich Crooks Being Arrested By The FBI
PLEASE SEE:
GREENWICH FRAUDSTERS, PAUL GREENWOOD AND STEPHEN WALSH NOT ONLY MISMANAGED INVESTORS MONEY AT WG TRADING THEY MISMANAGED THE NEW YORK ISLANDERS TOO
From at least 1996, Walsh and Greenwood raised roughly $1.3 billion from investors....
BY Thomas Zambito
DAILY NEWS STAFF WRITER
DAILY NEWS STAFF WRITER
Two former members of the New York Islanders' infamous Gang of Four ownership group were arrested on securities fraud charges today for swindling top-flight universities out of hundreds of millions of dollars.
You Won't Read This In The Greenwich Time, The Greenwich Citizen Or The Greenwich Post ......
Here Is A Picture Of Greenwich Fraudster Paul "I am Not Cooperating With No Stinking Audit" Greenwood Who Is Now Under Arrest
NEW YORK - The FBI says the operators of a Connecticut-based firm company have been arrested in New York on securities fraud charges.
Paul Greenwood and Stephen Walsh, principals of WG Trading Company LP, were awaiting a federal court appearance in Manhattan on Wednesday.Earlier this month, a regulatory agency for the U.S. futures industry suspended Greenwood and Walsh, accusing them of refusing to answer questions about the transfer of $350 million to another fund.
Do We Have A Mini-Bernie Madoff Ponzie SchemeRight Here In Greenwich?
THE HEADLINES:
YOU THOUGHT FAIRFIELD GREENWICH GROUP WAS BAD:
What About WG Trading?
Paul Greenwood And Stephen Walsh Make Greenwich Resident Walter "Feeder Fund" Noel Look Like A Boy Scout
University of Pittsburgh and Carnegie Mellon University files Federal lawsuit against Greenwich Traders Paul Greenwood and Stephen Walsh
Pitt and CMU have also notified the Securities and Exchange Commission and the Commodities Futures Trading Commission About Greenwood And Walsh
THE QUOTE:
"We don't want to talk with you. Why would we want to talk to a reporter," said a woman at Paul Greenwood's Westchester, N.Y., home who identified herself as his wife.
THE STORY:
Pittsburgh Post-Gazette
.....The MRA suspends Greenwood and Walsh from NFA membership indefinitely. The MRA also prohibits Greenwood and Walsh or anyone acting on their behalf from soliciting or accepting any customer or pool participant funds and they are prohibited from placing trades for any pools that they operate or control except to liquidate existing positions. Additionally, the MRA prohibits them from disbursing or transferring any funds from any accounts which either of them own, control or which are held in either of their names without prior approval from NFA......
================================================================
Please send your comments to GreenwichRoundup@gmail.com or click on the comments link at the end of this post.
No comments:
Post a Comment