Stephen Walsh, a 1966 UB alumnus and University at Buffalo Foundation, Inc. board member, was arrested Wednesday in New York City and charged with being part of an investment-fraud scandal totaling $554 million, authorities said.
???Walsh, along with an accomplice, began to use clients' money in 1996 to buy extravagant homes, fancy cars, and even a horse barn and horses, according to the Securities and Exchange Commission.
???According to police, Carnegie Mellon University allegedly put over $49 million into the hands of Walsh and his partner, while the Iowa Public Employees Retirement System invested $339 million and the University of Pittsburg invested more than $65 million, police said. All were said to be victims of Walsh's malfeasance.
???No UB funds were invested with Walsh, due to a university policy that prohibits the school from investing money with members of the Foundation board, according to university officials.
???The two men were released on $7 million bonds after being charged with securities fraud and wire fraud, which can result in 20 years in prison for each charge, as well as conspiracy, for which they can face up to five additional years in prison, according to the Buffalo News.
???In 2001, Walsh served as chairman of a committee to raise money for UB athletics and made a personal contribution of $250,000. The Athletics Department office in Alumni Arena was named after him following the contribution.
???Walsh, originally from Long Island, will no longer be a member of the Foundation board in June when his term expires.
???Besides his affiliations with UB, Walsh once partially owned the NHL's New York Islanders.
