Hedge Fund Manager Who Spent Investor Funds On Prized Teddy Bear Collection Gets Five Years Lopped Off Sentence

Teddy-loving Paul Greenwood will be home sooner than he and his beloved stuffed animals thought.
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In December 2014, hedge fund manager Paul Greenwood was sentenced to 10 years in prison for loving stuffed animals too much. Well, he was sentenced for running a thirteen year Ponzi scheme, after being convicted on six counts of securities fraud, but that was simply a means to an end. Greenwood, as some of you may recall, led a teddy bear-loving lifestyle that at its peak included 1,348 bears worth $3 million, which he showcased in “collector display cabinetry” at the top of a dramatic spiral staircase and kept track of via a spreadsheet that included specifics like “full-dressed in sailor suit, lavender-tipped mohair coat [and] felt spats." After pleading guilty, Greenwood was forced to auction off the majority of the bears at Christie's and likely never forgave himself (for sending them to live with new families, families who couldn't love them like he did). The ones he was able to hold onto? Probably sitting in storage, in a box, getting musty. And for the last year, he's wallowed away in prison with nary a bear in site, not even some piece of sh*t Vermont teddy b. Finally, though, some good news has come his way: in less than 48 months, he can begin the process of being reunited with his babies.

Paul Greenwood, 69, won a resentencing when an appeals court ruled in January that the trial judge had made mistaken findings about the victims of the fraud. U.S. District Judge Loretta Preska Wednesday credited Greenwood’s cooperation with the government and his help in recovering more than 95 percent of the victims’ investments in giving him the requested cut in prison time. “I salute you for your prior charitable works and particularly for your cooperation in this case,” Preska told Greenwood, who participated in the hearing by telephone from the federal prison in North Carolina where he’s served more than a year of his sentence. Prosecutors asked for leniency for Greenwood, citing his five years of cooperation with U.S. investigators. Preska also sentenced Greenwood to three years’ probation.

It'll take time, of course, and he won't initially be able to treat them to the lifestyle they'd grown accustomed to before daddy had to away. But they'll be a family again, sooner than he'd over hoped, and that's what matters.

WG Trading’s Greenwood Gets Fraud Sentence Cut in Half [Bloomberg]

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