North Salem Town Supervisor Paul Greenwood has been arrested and charged in a $350 million securities fraud case.

Greenwood and his business partner, Stephen Walsh, are charged with three counts of conspiracy to commit securities and wire fraud over their business dealings at WG Trading Company in Connecticut. Police say the two men turned themselves in Wednesday. Greenwood is being held on $7 million bail.

Earlier this month, a regulatory agency for the U.S. futures industry suspended Greenwood and Walsh, accusing them of refusing to answer questions about the transfer of $350 million to another fund they controlled. Police say Greenwood and Walsh are accused of raiding funds to buy horses and cover other personal expenses. Greenwood is a horse breeder.

It is still unclear if Greenwood's arrest will affect his status as North Salem Town supervisor. His term runs until the end of this year.