FRAUD

New Mini Madoffs

It is a sign of the times that the latest fraud allegations uncovered by the SEC are "only" for $660 million. Two Connecticut investors with WG Trading, Paul Greenwood and Stephen Walsh, are accused of stealing $550 million from clients, many from charities and academic institutions like the University of Pittsburgh. According to Forbes, Greenwood spent his ill-gotten gains on "horses, rare books and other collectibles," while Walsh made "large cash payments to an ex-wife." In a separate fraud case, James Nicholson of Westgate Capital in New York is charged with stealing over $100 million from his clients over four years by misrepresenting the size and effectiveness of his funds, which he helped hide by using a fake accountant to pretend to audit his operation.