One Westridge executive pleads guilty to fraud

An investor accused of misappropriating about $70 million in Pitt’s endowment funds has… An investor accused of misappropriating about $70 million in Pitt’s endowment funds has pleaded guilty, opening the door for the University to recoup some of the money it lost.

Paul Greenwood, a top executive for Westridge Capital Management, switched his plea from not guilty to guilty this summer and will face sentencing Dec. 1 on charges that he helped run a $553 million fraud scheme.

Greenwood also signed an agreement that will allow federal officials to begin divvying up some of his assets and returning them to investors whose money he and another man used to buy rare books, horses, teddy bears from Sotheby’s and a lavish residence, according to court documents.

Beginning Tuesday, companies who invested with Westridge Capital Management, including Pitt, can file notices with officials outlining how much money they’d like to receive from Greenwood.

University officials could not be immediately reached yesterday to comment on how much money Pitt would seek.

In previous interviews, University officials have said that the University expects to recover about $35 million. That number was based on a report filed by Robb Evans & Associates LLC, a court-appointed company that evaluated Westridge’s assets.

The University will have until mid-October to file a claim in court.The Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission — federal groups that led the investigation at Westridge — will have 30 days after that to give their opinions. Robb Evans & Associates will then have 30 days to issue its opinion before a judge examines the proposals.

Stephen Walsh, Greenwood’s partner at Westridge, was also indicted on charges of fraud in connection with the scheme. He pleaded not guilty, and his case is pending in the U.S. District Court for the Southern District of New York, where Greenwood’s court proceedings occurred.