New York (HedgeCo.net) – Former hedge fund manager Paul R. Greenwood pled guilty to criminal charges involving a Ponzi-esque scam in which he is alleged to have cheated millions from four university endowments.
The Chronicle For Higher Education reports that Greenwood and his partner, Steven Walsh, may have used the $900 million as a personal fund. Walsh has pleaded not guilty, and Greenwood will testify against him at trial.
“The two spent at least $160-million on mansions, horses, rare books, and an $80,000 collectible teddy bear.” The paper reports.
Offering low risks and high returns, the team’s investors included the University of Pittsburgh, who invested $65 million, Carnegie Mellon University, $49-million, Bowling Green State University, $15 million, and Ohio Northern University who invested $10-million.
Greenwood’s assets will be auctioned off in an attempt to recoup some of the investor losses. He also faces a prison sentence of as long as 85 years and hundreds of millions of dollars in fines at his December sentencing, according to The Chronicle For Higher Education.