Paul Greenwood and Stephen Walsh have completed restitution to victims of a $1.3 billion Ponzi scheme, according to a September 11, 2020 announcement from the Commodity Futures Trading Commission (CFTC). The final distribution, ordered by the U.S. District Court for the Southern District of New York on August 24, 2020, brings the total funds returned to investors to over $1 billion – covering 100% of all approved claims.
Greenwood and Walsh were originally charged by the CFTC in 2009 with operating a fraudulent scheme that misappropriated at least $553 million from participants in commodity pools connected to their companies, including Westridge Capital Management, Inc., WG Trading Investors, LP, and WGIA, LLC. The Securities and Exchange Commission (SEC) also pursued a related civil action.
The recovery of funds involved a complex process of asset marshaling by the court-appointed receiver, Robb Evans & Associates LLC. Recovered assets included over $88 million clawed back from customers who had fully redeemed their investments, a $14 million horse farm in North Salem, New York, a collection of antique teddy bears auctioned at Christie’s for over $3.7 million, and an estate in Sands Point, New York.
Final judgments against Walsh and Greenwood were entered on November 13, 2019, and November 19, 2019, respectively. The initial distribution to investors, primarily institutions such as pension funds and university foundations, totaled approximately $792 million, followed by three additional partial distributions. This final distribution completes the restitution process.
“With all distributions now complete, we have returned more than $1 billion to victims, constituting 100% of all approved claims,” stated James McDonald, Director of the CFTC’s Division of Enforcement. Stephanie Avakian, Enforcement Director of the SEC, added that the case demonstrates a commitment to protecting investors and seeking justice for victims of fraud. Both agencies highlighted the successful collaboration with law enforcement and regulatory partners in achieving full restitution.
Source: CFTC.gov
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