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March 22, 2012

$2.18M more in lost endowment funds may be returned

More of the $70 million Pitt lost in an investment scam soon could be returned to the University’s endowment.

Court-appointed receiver Robb Evans & Associates has asked a federal court judge in New York to approve its plan to distribute an additional $40 million in recovered assets to investors who entrusted money to investment fund operators Paul Greenwood and Stephen Walsh.

The receiver initially distributed $792.5 million in recovered assets in April 2011. Approximately $53.7 million already has been returned to the University’s endowment. (See April 28, 2011, University Times.)

If the court approves the motion for the second distribution, Pitt’s share would be approximately $2.18 million, said John Fedele, associate director of News.

Greenwood and Walsh, who operated Westridge Capital Management, WG Trading Investors, WG Trading Co. and other related firms, were charged in 2009 with operating a $1.3 billion Ponzi-style scheme that misappropriated money from institutional investors including Pitt and Carnegie Mellon University.

Greenwood pleaded guilty to securities fraud and related charges in July 2010 and is awaiting sentencing; Walsh has pleaded not guilty.

Kimberly K. Barlow

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