Trial of Paul Greenwood’s co-defendant set for July

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The trial of Stephen Walsh, who ran WG Trading with former North Salem Supervisor Paul Greenwood before they were both arrested on federal securities fraud charges in 2009, has been scheduled for July 8 in Manhattan.greenwood

Greenwood pleaded guilty to six criminal counts in July 2010 but has been cooperating with prosecutors against Walsh and has not been sentenced. In 2011 he moved to North Carolina with his wife Robin.

Both men, who ran several businesses together, were accused of taking tens of millions of dollars for themselves and lying to investors on financial statements in what amounted to a Ponzi scheme. Walsh is from Sands Point, Long Island.

A receiver in civil cases by the Securities and Exchange Commission and the Commodity Futures Trading Commission has been collecting assets to repay investors, including selling off Greenwood’s homes and collectibles. The star auction brought in $1.7 million for the Greenwoods’ collection of Steiff plush toys. The pony farm run by his wife, Grand Central Farm, in North Salem and Southeast, was sold in November for $14.9 million.

Photo: Former North Salem Town Supervisor Paul Greenwood leaves the United States Courthouse in Manhattan July 31, 2009 following his arraignment on a six count indictment of conspiracy, securities fraud, commodities fraud, wire fraud and money laundering. ( Matthew Brown / The Journal News )

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  1. the sad thing is that Greenwood’s wife was allowed to participate in the auction. They both must have friends in high places.