Wednesday, July 22, 2009
BLOOMBERG NEWS, NorthJersey.com
BLOOMBERG NEWS, NorthJersey.com
WG Trading Co. Investors $554M in hole from fraud
A Mahwah woman pleaded guilty Tuesday to federal charges of money laundering, securities fraud and conspiracy in what authorities describe as a "brazen" $554 million fraud.
Deborah Duffy, 53, former chief compliance officer of WG Trading Co., entered the plea in Manhattan federal court. Duffy, who faces a separate suit by the U.S. Securities and Exchange Commission, agreed to cooperate with federal prosecutors as part of a larger probe.
According to federal authorities, WG Trading general partners Paul Greenwood and Steven Walsh promised to put investors' dollars into an "enhanced equity index" strategy. Instead, authorities said, Greenwood and Walsh used the company as a "personal piggy bank" to buy homes, cars, horses and collectible teddy bears. The SEC, which also sued the men, described WG Trading Investors as an unregistered investment vehicle.
Posted by Editor on 07/22/09 at 07:22 AM •
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