The receiver in charge of liquidating WG Trading Co., the firm allegedly used in a Ponzi scheme by former managers Paul Greenwood and Steven Walsh, sued to recover profit made by investors including American International Group Inc.’s SunAmerica Life Insurance unit.
The receiver, Robb Evans & Associates, claimed in a complaint filed today in federal court in New York, that the investors withdrew more money from their investments in the scheme than they paid in. The receiver is trying to recover the excess payments for the benefit of WG Trading creditors.
Evans is seeking to recover $76.5 million from SunAmerica, $24.4 million from Sun Life Assurance Co. of Canada (U.S.), $4 million from Baptist Healthcare System Inc. and $4.1 million from Trustees of Tufts College Inc.
Greenwood and Walsh were indicted last July on charges that they conspired to defraud investors of $554 million. Prosecutors said the scheme stretched from 1996 until their arrest in February 2009.
Greenwood pleaded guilty to six charges, including conspiracy and securities fraud, last month. Prosecutors said Greenwood is cooperating with the government and will be a witness against Walsh, who pleaded not guilty.
AIG spokesman Joe Norton and Tufts spokeswoman Kim Thurler had no immediate comment on the suit. Sun Life spokeswoman Kimberly Ferri didn’t immediately return a voice-mail message. A message left for Louisville, Kentucky-based Baptist Healthcare after business hours wasn’t immediately returned.
The case is Robb Evans & Associates v. Sun America Life Insurance, 10-CV-5999, U.S. District Court, Southern District of New York (Manhattan).