WG Trading Receiver Sues Cooper Industries for $21 Million
The receiver in charge of liquidating WG Trading Co., the company allegedly used in a Ponzi scheme by former managers Paul Greenwood and Steven Walsh, sued to recover $21 million in profit from a Cooper Industries Inc. trust.
Robb Evans & Associates, the receiver, claimed in a complaint filed in Manhattan federal court today that the Cooper Industries Inc. Master Trust for Defined Benefit Plans paid $140.1 million into WG Trading and received a total of $161.9 in return.
Greenwood and Walsh were indicted in July 2009 on charges that they conspired to defraud investors of $554 million. The U.S. said the scheme stretched from 1996 until the men were arrested in February 2009. Greenwood pleaded guilty to six charges, including conspiracy and securities fraud. Walsh has pleaded not guilty.
The receiver is trying to recover the excess payments for the benefit of WG Trading creditors.
Jeff Krakoff, a spokesman for Houston-based Cooper Industries, didn’t immediately return a voice-mail message seeking comment on the suit.
The case is Robb Evans & Associates v. State Street Bank & Trust Co., 11-CV-3478, U.S. District Court, Southern District of New York (Manhattan).
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