Pitt, CMU could lose millions in alleged fraud scheme

A company accused of defrauding Pitt and Carnegie Mellon has about $600 million less than it… A company accused of defrauding Pitt and Carnegie Mellon has about $600 million less than it owes investors, according to a report filed in federal court.

Robb Evans & Associates LLC, a company appointed by the federal court to oversee and evaluate the assets of Westridge Capital Management and its affiliates, said the corporation has about $900 million in assets, but that its investors’ claims appear to be worth about $1.5 billion.

Pitt officials said the University invested $65 million in Westridge. The University sued the company’s principals, Paul Greenwood and Stephen Walsh, in February for misappropriating funds.

The Commodity Futures Trading Commission and the Securities Exchange Commission accused Greenwood and Walsh in February of misappropriating about $553 million. The CFTC said the pair used more than $160 million on personal expenses such as rare books, horses, teddy bears from Sotheby’s and a residence for Walsh’s ex-wife.

Chancellor Mark Nordenberg said in a statement in March that Pitt began researching the company in 2000, as part of an effort to explore the University’s investment options. Pitt made its first investment with Westridge in 2002, “following an extended period of due diligence activities,” Nordenberg said.