North Salem reeling from Greenwood arrest

Residents of the posh North Salem community have been shocked to learn that Town Supervisor Paul Greenwood is accused of swindling hundreds of millions of dollars.

Federal prosecutors contend Greenwood and his business partner, Stephen Walsh, had used a Ponzi scheme to steal money from investors for 13 years. None of the criminal charges involve town money.

Town Clerk Veronica Howley says there is nothing the municipality can do to force Greenwood out of office unless he is convicted or resigns on his own accord.

"At this point, Mr. Greenwood has not made any decision as to whether or not he will be resigning as town supervisor," she says.

Since his arrest Wednesday, Greenwood has not been to his North Salem office, and it remains unknown whether he will preside over the next town board meeting March 10.

If Greenwood should resign or be convicted, the job of town supervisor would be taken over by current Deputy Supervisor Warren Lucas until the end of the year.

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