SEC ANNOUNCED DISTRIBUTION IN WG TRADING FRAUD CASE

The following excerpt comes from the SEC web site:

“SEC Announces Initial Distribution of $792 Million to Injured Investors in WG Trading Investment Fraud
On April 21, 2011, the court-appointed Receiver in the Commission’s case against defendants Paul Greenwood, Steven Walsh and their affiliated WG Trading entities made an initial distribution of approximately $792 million to investors injured in the investment fraud orchestrated by Walsh and Greenwood. On March 20, 2011, Judge George B. Daniels of the United States District Court for the Southern District of New York approved a pro rata net investment distribution plan proposed by the Receiver and recommended by the SEC and the Commodity Futures Trading Commission (CFTC). Today’s distribution marks the first distribution by the Receiver and constitutes a return to investors of nearly 85% of approved claims.
On February 25, 2009, the SEC and CFTC obtained emergency relief against Walsh, Greenwood and their WG Trading affiliated entities in SEC v. WG Trading Investors, L.P., et al., Civ. No. 09-1750 (GBD)(SDNY) and CFTC v. Walsh, et al., Civ. No. 09-1749 (GBD)(SDNY). The SEC has since obtained an order of permanent injunction against Greenwood, who also pleaded guilty to criminal violations in a criminal action based on the same underlying conduct. Criminal and civil cases against Walsh continue.
The Receiver responsible for the distribution is Robb Evans & Associates, LLC, of Sun Valley, California.”