CFTC secures final judgment against Paul Greenwood in $1.3bn investment fraud case

Maria Nikolova

Judge George B. Daniels of the New York Southern District Court granted the CFTC’s request for a final judgment against the defendant.

The United States Commodity Futures Trading Commission (CFTC) has secured a final judgment against Paul Greenwood, a defendant in a $1.3 billion investment scam case. On November 19, 2019, Judge George B. Daniels of the New York Southern District Court granted the CFTC’s request.

As per the order, the Greenwood Permanent Injunction previously entered by the Court on July 28, 2010, will constitute the final judgment against the defendant in favor of the Commission. Let’s recall that a forfeiture money judgment was entered against Greenwood in a parallel criminal proceeding in the amount of $83,500,000, constituting the total proceeds he personally received as a result of the felony violations to which he pled guilty. The CFTC has withdrawn its claims for any further relief.

Earlier in November, the CFTC obtained a final judgment against another defendant in this case – Stephen Walsh.

Back in 2009, the CFTC charged Stephen Walsh and Paul Greenwood with fraudulently soliciting approximately $1.3 billion through Westridge Capital Management, WG Trading Investors, LP, and other entities.

The CFTC’s complaint alleged that the defendants solicited funds from commodity pool participants. The defendants defrauded victims by falsely depicting that all pool participants’ funds would be employed in a single investment strategy that consisted of index arbitrage. However, pool participants’ funds were transferred to another entity from which Walsh and Greenwood siphoned funds.

According to the complaint, to cover-up their misappropriation of pool participants’ funds, Greenwood and Walsh manufactured promissory notes to present the appearance that pool participants’ funds had been loaned to them.

Walsh and Greenwood allegedly misappropriated approximately $553 million in pool participants’ funds. More than $160 million was used for Walsh and Greenwood’s personal expenses, including purchasing rare books, horses, Steiff teddy bears for as much as $80,000, and a $3 million residence for Walsh’s ex-wife.

Read this next

Digital Assets

DeFiChain tokenizes Walmart, Unilever, US Oil and Gas Funds

Bitcoin-based DeFi platform DeFiChain is opening up the opportunity for its users to trade crypto versions of Walmart, Unilever, US Oil Fund, and US Gas Fund.

Industry News

The B2Broker B2Core REST API Is Now Live

B2Broker has announced the release of its new REST API, which lets customers use B2Broker’s solutions and services for business purposes.

Executive Moves

CME Group taps Paul Woolman to lead Equity Index, Giovanni Vicioso to lead Crypto

“Our equity and cryptocurrency businesses have experienced tremendous growth in recent years, underpinned by strong customer adoption and continued innovation.”


Sumsub launches document-free KYC for users in India, Brazil, Nigeria and Indonesia

Sumsub has launched one click-KYC for users in India, Brazil, Nigeria and Indonesia in a move that allows businesses to instantly onboard over 2 billion users without requesting their ID documents.

Digital Assets

Cboe becomes first major global exchange operator on DeFi data platform, Pyth Network

“Our participation in the Pyth network will provide another avenue to broaden customer access to our data, and aligns with our strategy to deliver market data to investors around the globe based on how they want to consume their data, whether through direct connectivity methods, the cloud or the blockchain.”

Industry News

FINRA fines Barclays Capital $2 million for best execution failures for 5 years

FINRA has fined Barclays Capital $2 million for failing to comply with its best execution obligations in connection with its customers’ electronic equity orders between January 2014 and February 2019. 

Digital Assets

SETL helps SWIFT, CSDs and custodians develop common framework for tokenisation systems

London-based enterprise DLT and blockchain company SETL has delivered a pilot project for SWIFT which implemented a common framework linking tokenisation systems between central security depositories (CSDs) and global custodians.

Digital Assets

Crypto volumes hit CHF 87.1 million at Switzerland exchange

Switzerland’s principal exchange has experienced a rebound in trading activities for September 2022, with monthly volumes increasing by more than 20 percent MoM.

Digital Assets

Bitcoin Suisse Vault taps Polkadot governance features

Bitcoin Suisse has added support for Polkadot protocol governance on its proprietary, hyper-secure cold storage solution, the Bitcoin Suisse Vault.