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

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR