Gregory Walsh, Real Estate Investment Fraud, Oregon 2023

PORTLAND, Ore. – The grimy halls of justice have once again echoed with the fall of a high-profile financial crime. Gregory Walsh, former Assistant Vice President at Morgan Stanley, has been sentenced to 24 months in federal prison followed by a three-year term of supervised release for his involvement in a $1.1 million real estate fraud scheme.

According to court documents, Walsh, along with his brother Geoffrey Walsh, a former Vice President at the Bank of Oswego, conned an unsuspecting Arizona woman into lending over $1.1 million. The deceitful duo promised the widow, a client of Gregory Walsh’s at Morgan Stanley, that her investment would be used to purchase three condominiums in Palm Springs, California, which were supposed to be sold within a year.

But as the story unfolds, it takes a darker turn. Geoffrey Walsh, despite his brother’s promises, titled all three properties in his own business name and sold two of them without the client’s knowledge or permission, using the proceeds for personal gain.

In January 2013, Gregory Walsh attempted to dupe the woman again, seeking an additional $2 million for a real estate development project in Oregon. He lied about his brother’s involvement and transferred the funds to Geoffrey Walsh’s lawyer’s trust account without the client’s knowledge. Over $1.7 million of this sum was used to pay off Geoffrey Walsh’s debts at the Bank of Oswego.

Throughout the scheme, Gregory Walsh repeatedly misled his client about her loans, his brother’s financial situation, and his own lies. He also initiated two other transactions totaling $2.1 million, which were never approved by the client. These funds were funneled to a Colorado cannabis company and a close friend of Geoffrey Walsh’s.

Geoffrey Walsh was sentenced to 30 months in federal prison for his part in the fraud. This case serves as a stark reminder of the lengths some will go to in the pursuit of financial gain, even at the expense of the innocent and unsuspecting.

This sordid tale of deception was investigated by the FBI and the FDIC Office of Inspector General (OIG-FDIC), with Claire M. Fay, Michelle Holman Kerin, and Quinn P. Harrington, Assistant U.S. Attorneys for the District of Oregon, leading the prosecution.