Bilked Investors in New York Case Owed Millions

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After four years of effort, a receiver in a New York securities fraud case is still trying to find ways to recover millions in lost investor cash.

With the disbursement of another $40 million last December, that brings to $855 million the sum returned to the one-time clients of former hedge fund operator Paul Greenwood. However, that’s still only about 90 percent of the recognized claims, according to this recent news article on the Lohud.com Web site.

The background: In February 2009, Greenwood was arrested and charged with securities fraud and wire fraud, among other accusations. In July 2010, he pleaded guilty to stealing from investors to fund his lavish lifestyle. Greenwood owned multiple homes, a pony farm, and an “unparalleled” collection of Steiff stuffed animals.

To repay investors, the sale of Greenwood’s Steiff stuffed animals alone brought in more than $1.7 million. However, Greenwood’s homes and pony farm are proving more difficult to sell, and are costing $82,000 a month to carry, notes the article.

Sometimes, financial professionals exploit their clients and take their hard-earned money without investing it as promised. If you or a loved one has been taken advantage of by a securities fraud scam, call Sokolove Law today for a free legal consultation about a securities fraud lawsuit.