A scheme in which client cash funded a lavish lifestyle of cars, horses and expensive collector teddy bears.
WG Trading money manager Stephen Walsh pleaded guilty to swindling investors out of $554m over 13 years, a scheme in which client cash funded a lavish lifestyle of cars, horses and expensive collector teddy bears.
Bloomberg News reports that Walsh, of Sands Point, New York, was first charged in 2009 with Paul Greenwood, WG’s former general partner.
The two men, former minority owners of the New York Islanders professional hockey team, used their commodities trading and investment advisory firm to steal from institutional investors including university foundations and charities from 1996 to 2009.
Walsh, 69, entered his plea last week before U.S. Magistrate Judge Kevin Nathaniel Fox in Manhattan. Greenwood, who pleaded guilty in 2010, was to testify against Walsh at his July trial.
The men solicited $7.6bn in investor funds to invest in 'equity index arbitrage', the government said in a statement, 'a conservative trading strategy that had outperformed the results of the S&P 500 Index for more than 10 years'.
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