Bow-tie wearing hedge fund founder Paul Greenwood has pleaded guilty to defrauding San Diego County’s pension and other big institutional investors of at least $331 million.
Greenwood and partner, Stephen Walsh, ran WG Trading, which collapsed with $78 million of San Diego County retirees’ money.
“You treated these investments as your own personal bank accounts?” U.S. District Judge Miriam Cedarbaum in Manhattan asked Greenwood during his plea hearing yesterday.
“Correct,” said Greenwood, who said he and Walsh often paid investors back using funds from other investors.
Greenwood used part of the money to acquire a collection of rare teddy bears and other stuffed animals.
The San Diego County Employees’ Retirement Association is suing to get its money back.