Ponzi Suspect Can't Tap Into $4M For Defense, 2nd Circ. Says

Law360, New York (April 2, 2013, 7:45 PM EDT) -- The Second Circuit on Tuesday barred accused Ponzi schemer Stephen Walsh from tapping $3.7 million from the sale of his house to fund his criminal defense, finding that he used tainted funds to acquire the property during a divorce.

A three-judge panel denied Walsh's bid to unlock assets frozen in civil suits over his alleged role in a fraudulent scheme at his broker-dealer company WG Trading Investors LP that prosecutors say cost investors as much as $554 million.

Walsh, who faces both criminal charges and civil...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.