We all heard about $6,000 spent by Dennis Kozlowski, former CEO of Tyco, for bathroom curtain. Now, there is another guy that allegedly spent $80,000 for collectible teddy bear — using the money looted from investors.
Federal prosecutors allege that since 1996, Paul Greenwood and Stephen Walsh ran a fraudulent investment-advisory scheme, involving several companies, in which they promised to invest funds in a program called “enhanced stock indexing.” It was represented as a conservative trading strategy that had outperformed the Standard & Poor’s 500 Index for more than 10 years. Prosecutors allege the men raised more than $668 million from institutional clients, and misappropriated most of the money.
Recently we heard about Bernard Madoff. Then, there was news about Allen Stanford. Now, this news is coming out. I wonder how many more crooks are going to be discovered.
Alleged victims (of Greenwood’s fraud) include Carnegie Mellon University, which had invested more than $49 million, and the University of Pittsburgh, which put in more than $65 million, court records show. These universities charge exorbitant fees from students and then they lose all the money to some crooks. What a world!
Related Link: Pair Lived Large on Fraud