Paul Greenwood, a former co-owner of the New York Islanders, was sentenced to ten years in prison on fraud charges. From 1996 through the beginning of 2009, Greenwood and his business partner, Stephen Walsh, used the businesses that they operated, Westridge Capital Management Inc. and WG Trading Co. LP, to swindle funds from investors. The men allegedly cheated institutional investors out of more than a half-billion dollars. Greenwood used the money for a teddy bear collection, a controlling interest in the New York Islanders, and numerous other personal expenditures.
Both men have pleaded guilty to the charges. Walsh received a 20 year prison sentence for his part in the fraud. Greenwood received a lighter sentence for cooperating and helping prosecutors with their case against Walsh. Greenwood will report to prison on February 9, 2015.
If you believe you have been victimized by securities fraud, financial malpractice, or theft by a FINRA registered broker, please call the securities attorneys of the Costello Law Group at (877) 418-0003 for a free consultation.