Ex-WG Trading employee pleads guilty in NY court (Reuters)

[Yahoo! News]

Reuters - The former chief compliance officer of broker dealer WG Trading Co pleaded guilty on Tuesday to criminal charges of illegally transferring more than $100 million to the firm's partners.

Deborah Duffy, 54, worked for 18 years for the Greenwich, Connecticut, company, whose two general partners were arrested in February on charges of running an estimated $554 million, decade-long swindle.

Duffy told U.S. District Judge Naomi Reice Buchwald in Manhattan federal court that she approved the money being transferred "to my bosses' benefit as loans" and "caused investors to receive false information, which I knew was against the law."

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The executives, Paul Greenwood and Stephen Walsh, were charged with bilking large institutional investors, including pension funds and educational institutions. The U.S. Securities and Exchange Commission said they used client money as "their personal piggy-bank" to fund lavish lifestyles.

On Tuesday, the SEC also filed civil charges against Duffy, accusing her of having taken as much as $292,000 of investors' money for herself, according to a court document. She worked for WG Trading from March 1991 to February this year.