NEW YORK (AP) — A former partial owner of the New York Islanders pleaded guilty to securities fraud Friday, admitting his participation in a 13-year fraud that authorities said enabled him to misappropriate more than $50 million for his own use.
Stephen Walsh, 69, of Sands Point, pleaded guilty in Manhattan federal court to a charge that carries the potential for up to 20 years in prison. Sentencing was set for July 29.
From 1996 to 2009, Walsh operated a securities business with Paul Greenwood of North Salem, Conn. The businesses included Greenwich, Conn.-based WG Trading Co. LP and Westridge Capital Management Inc. in Santa Barbara, Calif.
Authorities said the men misappropriated hundreds of millions of dollars from the accounts of their clients, who included charitable and university foundations and pension plans.
"Stephen Walsh and his partner Paul Greenwood ran an investment operation that was a veritable money-making machine — for them," U.S. Attorney Preet Bharara said in a release. "Their purported investing strategy wasn't nearly as effective as their fraudulent sales pitch to investors. Walsh personally pocketed tens of millions in stolen investor dollars. He will soon surrender his money and himself to answer for this fraud."
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