The Washington Times - February 26, 2009, 08:57AM

Two money managers who once owned a pro hockey team have been charged with running a $550 million fraud scheme for 10 years by using client investments as their personal piggybank, Reuters is reporting.

Paul Greenwood and Stephen Walsh, both of whom oversaw investments for Carnegie Mellon University and other institutions, used clients’ money to buy racehorses, mansions and mohair teddy bears, federal prosecutors said. The pair once owned the New York Islanders.

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Their bail has been set at $7 million, and the Securities and Exchange Commission has frozen their assets.

Mohair teddy bears?!  These guys skim more than $500 million from client investments, and they buy mohair teddy bears?!  What did they call themselves — the Winnie the Pooh Gang?

If the charges are true, it’s amazing they got away with the fraud for so long.  I mean, a surplus of mohair teddy bears is a sure sign of money badly spent.

If there’s one good thing emerging from this economic downturn, it’s that we’re finding out who’s been scamming our cash for all these years.  I would have blamed it on late-night infomercials.