Another Madoff Surfaces - Part 4

February 26. 2009

Stephen Walsh (AP)

More Madoff style fraud has surfaced. The FBI has arrested two men for running a $339 million dollar investment scam, defrauding members of the public, that thought their pension money was safe. Paul Greenwood and Stephen Walsh were taken into custody, for misappropriating funds they managed.

Paul Greenwood (AP)

STORY SOURCE

FBI arrest men linked to $339 million in frozen Iowa pension money

Two investment managers linked to $339 million in frozen assets of the Iowa Public Employees’ Retirement System were arrested today by the FBI on securities fraud charges, federal authorities said. Paul Greenwood, 61, of North Salem, N.Y., and Stephen Walsh, 64, of Sands Point, N.Y., were taken into custody and were expected to appear in Manhattan Federal Court this afternoon. Court papers identified Greenwood and Walsh as the owners of Greenwich, Conn.-based WG Trading Co. LP and Westridge Capital Management Inc., based in Santa Barbara, Calif...

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