SEC charges two over $500m "brazen" fraud

Daily news headlines

WASHINGTON, DC - The Securities and Exchange Commission (SEC) has charged two New York men with a "brazen investment fraud" and the misappropriation of $554 million in investor assets. The US regulator took emergency action to freeze the assets of Paul Greenwood and Stephen Walsh, and their three affiliated firms.

The SEC alleges the two promised investors their money would be invested in a stock index arbitrage strategy. Instead, they are alleged to have used the $554 million fund to buy million-dollar homes, a horse farm, luxury cars and even rare antique Steiff teddy bears.

Scott Friestad, deputy director of the SEC's enforcement division, said: "Today's emergency action shows that the Commission will act decisively to put a stop to ongoing fraudulent investment schemes and preserve assets for investors."

Unregistered investment vehicle WG Trading Investors and WG Trading Company, Limited Partnership, which is a registered broker-dealer, have had their assets frozen, as has Westridge Capital Management, a registered investment adviser.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here