Ex-Islander exec's Sands Point home has buyer and complications
Ex-Islander executive Stephen Walsh. (Feb. 25, 2009) Credit: Bloomberg News
A former New York Islanders executive charged with fraud faces a hearing next month on who's entitled to $4 million in proceeds from the upcoming sale of his house in Sands Point.
Stephen Walsh had his assets frozen when he was charged in 2009 in an $150 million fraud involving his trading firm, WG Trading, and was also sued by the Securities and Exchange Commission and Commodities Futures Trading Commission.
The case still hasn't come to trial, but a court-appointed receiver has found a buyer for Walsh's house.
Walsh is entitled to the first $900,000 under previous rulings, but the government claims the rest can be connected to the fraud charges, his lawyer, Mark Flessner, told U.S. District Judge Miriam Cedarbaum on Tuesday.
Walsh has argued that he needs the money to pay legal fees. Cedarbaum set a March 28 hearing on the issue.
Walsh, 66, served as a co-chairman of the Islanders from 1991 to 1998, when his ownership group was bought out by Charles Wang. His co-defendant in the criminal case, Paul Greenwood, 63, of upstate North Salem, also a former Islanders executive, pleaded guilty last year.
