Conspiracy and fraud charges for Walsh

NEW YORK, N.Y. (WIVB) - A businessman with ties to the University at Buffalo is accused of scamming half a billion dollars from investors.

One of the men is a 1966 UB alumnus and member of the UB Foundation Board.

64-year-old Stephen Walsh of Sands Point, New York, and his partner are accused of misusing more than 500 (m) million dollars in investor funds for personal use.

Walsh and 61-year-old Paul Greenwood of North Salem, New York, are charged with conspiracy, securities fraud, and wire fraud.

Both men were part owners of the New York Islanders in the 1990s.

The FBI says charities, universities, retirement and pension plans invested more than 668 (m) million dollars in their company from at least 1996 until this month.

The UB Basketball Office Complex inside Alumni Arena is named for Walsh, who made a half million dollar donation. If Walsh is convicted, UB reserves the right to rename it.

UB spokesman Joe Brennan says Walsh hasn't attended a Foundation Board meeeting in five years.

He says UB did not invest money in Walsh's company, "UB has no funds invested with Mr. Walsh in any of the companies that he's affiliated with. We have a very strong policy against investing with any firms that are associated with people on our board of trustees for the foundation, so that's protected us from any exposure here."

A regulatory agency for the futures industry audited Walsh's company earlier this month because of ties to another man who was being investigated.

The National Futures Association says Walsh and Greenwood were very uncooperative, so it contacted the Federal Trade Commission and FBI.

Bail was set at seven million dollars each.

Walsh and Greenwood were released after they each put up a million dollars in cash or property.