NEW YORK, NY – October 17, 2022 – A $1.3 billion Ponzi scheme orchestrated by Paul Greenwood and Stephen Walsh has reached its conclusion after 13 years of litigation, the Commodity Futures Trading Commission (CFTC) announced today. The CFTC originally filed a complaint against Greenwood and Walsh in February 2009, alleging the pair misappropriated at least $553 million from investors in a commodity pool.
The U.S. District Court for the Southern District of New York approved the receiver’s final report on September 19, officially discharging Robb Evans & Associates LLC, the court-appointed receiver. The remaining receivership funds will be held by the court.
Remarkably, the receivership managed to return over $1 billion to investors – a full 100% of all approved claims. Recovered assets included $88 million clawed back from investors who had already received payouts, a $14 million horse farm in North Salem, New York, a collection of antique teddy bears auctioned off for $3.7 million, and a Sands Point, New York estate.
Paul Greenwood and Stephen Walsh both pleaded guilty to criminal charges in a related case. Greenwood agreed to a consent forfeiture judgment of approximately $85 million and served approximately five years in federal prison. Walsh agreed to a $50 million forfeiture and received a four-year prison sentence.
“As this long-standing litigation demonstrates, where customers are egregiously harmed by greedy fraudsters who misappropriate funds entrusted to them, the CFTC is resolute in its commitment to protecting customers and achieving justice,” said Acting Director of Enforcement Gretchen Lowe. The SEC also pursued a civil action against the defendants in a related matter.
The initial distribution of recovered funds, totaling approximately $792 million, primarily benefited institutional investors, including state and county pension funds, private pension funds, and university foundations. Subsequent partial distributions completed the process, ensuring all approved claims were fully satisfied.
Source: CFTC.gov
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