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ERIC Number: EJ837986
Record Type: Journal
Publication Date: 2009-Mar-13
Pages: 1
Abstractor: ERIC
Reference Count: N/A
ISBN: N/A
ISSN: ISSN-0009-5982
Universities Seek Answers after Huge Sums Vanish
Fain, Paul
Chronicle of Higher Education, v55 n27 pA18 Mar 2009
On February 13, administrators at the University of Pittsburgh and Carnegie Mellon University began to worry that $114-million they had invested with two Wall Street veterans might have disappeared. Their worst fears were realized two weeks later, as federal agents arrested Paul R. Greenwood and Stephen Walsh on multiple counts of fraud and conspiracy. According to the Securities and Exchange Commission, the two misappropriated $554-million in funds from 16 institutional investors as a "personal piggy bank," spending at least $160-million on mansions, horses, rare books, and an $80,000 teddy bear. The author reports on the two universities which seek answers, and restitution, after $114-million vanished in an alleged swindle by outside investment managers. Like many other institutions, Pitt and Carnegie Mellon were lured by the promise of big returns on alternative investments, a largely unregulated category that includes private equity, hedge funds, and other sometimes risky investment strategies. The two universities filed a civil lawsuit before the federal agents acted, and are trying to recover their investments, which were estimated at $65-million for Pitt and $49-million for Carnegie Mellon. But securities experts say they are unlikely to secure much of the money, which appears to have been either spent or used to cover losses.
Chronicle of Higher Education. 1255 23rd Street NW Suite 700, Washington, DC 20037. Tel: 800-728-2803; e-mail: circulation@chronicle.com; Web site: http://chronicle.com/
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Pennsylvania