Former New York Islanders co-owner Paul Greenwood had his prison term for a massive investment fraud cut in half to 5 years at a resentencing in federal court in Manhattan on Wednesday.
Greenwood, 69, cooperated with prosecutors after he and partner Stephen Walsh, a former Islanders executive, were charged with issuing phony promissory notes to cover losses in their investment fund and diverting $80 million to fund expensive lifestyles.
He was sentenced to 10 years in prison in 2014 by the late U.S. District Judge Miriam Cedarbaum. The sentence was overturned on appeal in February because she cited “devastating” losses to individual investors, but the record of the case showed only losses to pension funds.