WG Trading Co. officer Stephen Walsh, accused of conspiring in a securities-fraud scheme that misappropriated at least $554 million from clients to purchase horses and cars, will go on trial on July 8, a federal judge ruled.
Walsh and another WG officer, Paul Greenwood, were first charged by the U.S. in 2009, accused of soliciting funds from institutional investors that included university foundations and charities. The scheme, which dated back to 1996, continued until February 2009, when the men obtained a $21 million investment from the University of Pittsburgh, according to the U.S. Securities and Exchange Commission, which sued both men for fraud.
Walsh’s lawyer, Michael Tremonte, told U.S. District Judge Miriam Cedarbaum today that after he took over the case from another defense lawyer, it took several months to get electronic evidence from prosecutors that he wasn’t able to get from the other attorney.
Greenwood pleaded guilty in 2010 to taking more than $75 million from clients. He hasn’t been sentenced.
The criminal case is U.S. v. Walsh, 09-cr-00722, U.S. District Court, Southern District of New York (Manhattan).