Ex-Hedge Fund Manager Admits $554 Million Fraud

Apr 28 2014 | 12:58pm ET

Former hedge fund manager Stephen Walsh has pleaded guilty to fraud charges more than five years after he was first arrested and charged.

Walsh, who led WG Trading and Westridge Capital Management with Paul Greenwood, admitted to ripping off investors of $554 million over the course of 13 years. His plea comes nearly four years after Greenwood pleaded guilty to the charges.

Greenwood was to testify against Walsh at his trial, which had been scheduled to begin in July. The men allegedly skimmed hundreds of millions of dollars from investors.

Walsh faces up to 20 years in prison when he is sentenced in July, and will forfeit $50.7 million.

Walsh and Greenwood, in addition to running their hedge funds, were also minority owners and executives with the New York Islanders hockey team.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note