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

MiFID2 For U.S. Firms: Key Questions Answered

Feb 27 2017 | 4:54pm ET

The January 2018 deadline for implementation of the EU’s mammoth MiFID2 regulations...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of