- Judge credits hedge fund manager with helping recover losses
- Greenwood used stolen money to add to teddy bear collection
A hedge fund manager who admitted to swindling investors out of $554 million using some of the money to add to his $1.9 million museum-quality stuffed-animal collection had his prison sentence cut in half, to five years.
Paul Greenwood, 69, won a resentencing when an appeals court ruled in January that the trial judge had made mistaken findings about the victims of the fraud. U.S. District Judge Loretta Preska Wednesday credited Greenwood’s cooperation with the government and his help in recovering more than 95 percent of the victims’ investments in giving him the requested cut in prison time.
“I salute you for your prior charitable works and particularly for your cooperation in this case,” Preska told Greenwood, who participated in the hearing by telephone from the federal prison in North Carolina where he’s served more than a year of his sentence.
Prosecutors asked for leniency for Greenwood, citing his five years of cooperation with U.S. investigators. Preska also sentenced Greenwood to three years’ probation.
“I’m definitely very pleased,” said Greenwood’s brother, James Greenwood, 66, outside the courtroom. “I think that the judge gave him a great deal fairer sentence.”
Greenwood’s cooperation helped the government win a guilty plea from former WG Trading money manager Stephen Walsh, who is serving a 20-year prison term. Walsh and Greenwood, former minority owners of the New York Islanders hockey team, were originally charged in 2009. Both men admitted using their commodities-trading and investment-advisory firm to steal from institutional investors, including university foundations and charities.
The case is U.S. v. Greenwood, 09-cr-00722, U.S. District Court, Southern District of New York (Manhattan).