Stephen Walsh (born 1944) is an American former money manager who pleaded guilty to

securities fraud Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in los ...

. Walsh and his business partner

Paul Greenwood Paul Greenwood (born 2 August 1943) is a British film, television and theatre actor. He is best known for his role as PC Michael "Rosie" Penrose in the short-lived sitcom ''The Growing Pains of PC Penrose'' and its successor '' Rosie'', and as ...

were arrested on February 24, 2009 for alleged

of between $550 million and $670 million. Walsh was a principal of Westridge Capital Management Inc. and chief financial executive of WG Trading Company, based in

Greenwich, Connecticut Greenwich (, ) is a New England town, town in southwestern Fairfield County, Connecticut, United States. At the 2020 United States Census, 2020 census, the town had a total population of 63,518. The largest town on Connecticut's Gold Coast (Conne ...

.Nate Raymond
Ex-NY Islanders co-owner gets prison term for fraud halved
Reuters (June 29, 2016). They were charged with scheming to defraud investors of $554 million.Patricia Hurtado
Fund Manager Paul Greenwood Pleads Guilty to Fraud
Bloomberg News (July 28, 2010). The scheme, which lasted from 1996 to 2009, defrauded investors, and involved unauthorized investments and the reporting of "arbitrary return rates" to investors that failed to account for losses.Elizabeth Ganga
Paul Greenwood sentenced to 10 years for massive fraud
''The Journal News'' (December 3, 2014). The scheme collapsed following the

global financial crisis Global means of or referring to a globe and may also refer to: Entertainment * ''Global'' (Paul van Dyk album), 2003 * ''Global'' (Bunji Garlin album), 2007 * ''Global'' (Humanoid album), 1989 * ''Global'' (Todd Rundgren album), 2015 * Bruno ...

and a

National Futures Association The National Futures Association (NFA) is the self-regulatory organization (SRO) for the U.S. derivatives industry, including on-exchange traded futures, retail off-exchange foreign currency (forex) and OTC derivatives ( swaps). NFA is headquar ...

audit that revealed

promissory note A promissory note, sometimes referred to as a note payable, is a legal instrument (more particularly, a financing instrument and a debt instrument), in which one party (the ''maker'' or ''issuer'') promises in writing to pay a determinate sum of ...

s used by Greenwood and Walsh to account for losses and withdrawals. From 1991 to 2003, Walsh held a minority stake in the

New York Islanders The New York Islanders (colloquially known as the Isles) are a professional ice hockey team based in Elmont, New York. The Islanders compete in the National Hockey League (NHL) as a member of the Metropolitan Division in the Eastern Conference ( ...

hockey team.John Riley
Judge takes 15 years off fraud sentence for ex-Islander co-owner Stephen Walsh
''Newsday'' (May 8, 2019). Walsh lived in Sands Point on

Long Island Long Island is a densely populated island in the southeastern region of the U.S. state of New York (state), New York, part of the New York metropolitan area. With over 8 million people, Long Island is the most populous island in the United Sta ...

. In April 2014, Walsh pleaded guilty in the U.S. District Court for the Southern District of New York with

, admitting false statements made to his firm's investors. After Judge

Miriam Goldman Cedarbaum Miriam Goldman Cedarbaum (September 16, 1929 – February 5, 2016) was a United States district judge of the United States District Court for the Southern District of New York. Education Born into a Jewish family, Cedarbaum grew up in the Crow ...

indicated that she was considering whether to impose a maximum 20-year prison sentence, Walsh considered withdrawing his guilty plea, but ultimately chose not to do so. Later in 2014, Cedarbaum sentenced Walsh to 20 years;Investment Managers Sentenced In Manhattan Federal Court For Several Hundred Million-Dollar Fraud Scheme
(press release), U.S. Department of Justice (December 3, 2014). Cedarbaum, who had earlier suffered a stroke, mistakenly believed that investors had not been made whole for their losses. On May 8, 2019, Judge

Loretta Preska Loretta A. Preska (born January 7, 1949) is an American federal judge who is currently a senior U.S. District Judge of the United States District Court for the Southern District of New York. Born in Albany, Preska received law degrees from F ...

reduced Walsh's sentence by 15 years, granting him immediate release, based on her finding that Walsh had received

ineffective assistance of counsel In United States law, ineffective assistance of counsel (IAC) is a claim raised by a convicted criminal defendant asserting that the defendant's legal counsel performed so ineffectively that it deprived the defendant of the constitutional right gua ...

References

{{DEFAULTSORT:Walsh, Stephen 1944 births Living people American fraudsters American white-collar criminals American money managers