For those of you following the Paul Greenwood case up in North Salem, I thought all the talk about the receiver in the Bernard Madoff case suing the owners of the Mets baseball team for the return of what he says are fictitious profits might make you wonder what’s going on with clawbacks in the local case.
Last August, Robb Evans, the receiver collecting assets from Greenwood, his business partner Stephen Walsh and their companies WG Trading, Westridge Capital Management and others, sued four entities in an effort to recover more than $109 million in “ill-gotten gains and the proceeds of illegal and fraudulent investments.”
The federal court case names SunAmerica Life Insurance, a subsidiary of American International Group (AIG); Sun Life Assurance Company of Canada, known as Sun Life Financial; Baptist Healthcare System of Kentucky; and the Trustees of Tufts College in Massachusetts.
He is seeking $76.5 million in “excess payments,” the amount beyond what was invested, from SunAmerica, $24 million from Sun Life, $4 million from Baptist Healthcare and $4.1 million from Tufts.
Greenwood, a former North Salem supervisor and prominent member of the horse community in northern Westchester, was arrested in February 2009. In July 2010 he pleaded guilty to six counts in federal court and agreed to cooperate with prosecutors and testify against Walsh, who has pleaded not guilty.
Greenwood admitted to taking money from investors to support a lifestyle beyond his already expansive means, to hiding investment losses and lying to his investors. His firms operated partially as a Ponzi scheme, authorities said, with new money paying off old investors. Evans, however, has recovered more than $815 million and is seeking court approval for a first round of distributions to investors of about 85 percent of their original investments.