Ohio Northern Falls Victim to Alleged Investment Fraud

Endowments at Pittsburgh, Carnegie Mellon, and Bowling Green Statealso lost money in alleged scheme.


Add Ohio Northern to the list of universities allegedly ripped off by two East Coast money managers. The university in Ada, Ohio, said it invested around $10 million of its endowment with Paul Greenwood and Stephen Walsh, both of whom were charged February 25 by the Securities and Exchange Commission for misappropriating $553 million of their investors' assets, the Chronicle of Higher Education reports. They face charges of securities fraud, wire fraud, and conspiracy.

Other college endowments that were tied up in the alleged scheme: the University of Pittsburgh ($65 million), Carnegie Mellon ($49 million), and Bowling Green State University ($15 million). Ohio Northern and BGSU were steered to the charged Wall Street traders by the Cleveland-based financial firm Hartland & Co., while Pittsburgh and Carnegie Mellon were advised by Wilshire Associates, a major California-based consulting firm.