Stuffed - Teddy bear collecting hedgie jailed for $554m swindle

Prison Bars

'I’ve lied, I’ve cheated, I’ve stolen'.

Hedge fund manager and teddy bear collector Paul Greenwood was sentenced to 10 years in prison after pleading guilty to swindling investors out of $554m, some of which he used to buy the stuffed toys.

Bloomberg News reports that Greenwood, 67, the general partner of WG Trading Co., pleaded guilty in 2010, telling a federal judge that he and his former partner, Steven Walsh, had “sort of” conducted a Ponzi scheme over 13 years.

He also admitted spending at least $75m of investor money in the commodities-trading and advisory firm to pursue his fascination with museum-grade teddy bears and other soft toys.

After his plea, Christie’s International held a 2010 auction of more than 1,000 stuffed animals from Greenwood’s collection which generated more than $1.72m in sales, including a rare 1904 Steiff “white rod” teddy bear with a gutta percha nose that sold for $21,000, according to the auction house’s website.

To access the complete Bloomberg News article hit the link below:

Hedge Fund Manager Heads to Prison Without Teddy Bears

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