Dow Jones reports that a former chief compliance officer at broker WG Trading Co. "pleaded guilty Tuesday to criminal charges in connection with more than $100 million in loans allegedly made to her bosses." Deborah Duffy told the court "I assisted in the unlawful transfer to my bosses of more than ($100 million) to my bosses' benefit as loans." Duffy is cooperating with authorities, who have also charged her bosses - Paul Greenwood and Stephen Walsh - in connection with the misuse of funds. Duffy faces up to 20 years in prison.
"Prosecutors from the U.S. Attorney's office in Manhattan have alleged Greenwood and Walsh, both former owners of the New York Islanders professional hockey team, misappropriated $550 million of funds invested by charities, university foundations and pension plans and used that money to finance their luxurious lifestyles." Some of the $160 million misused by the duo was spent on rare books purchased at several auctions, the report concludes.