Wextrust Capital, LLC et al.
On August 11, 2008, the SEC obtained an asset freeze and the appointment of a Receiver in its case against Wextrust Capital, LLC, its principals Steven Byers and Joseph Shereshevsky, and its affiliated entities Wextrust Equity Partners, LLC, Wextrust Development Group, LLC, Wextrust Securities, LLC and Axela Hospitality, LLC in connection with an alleged massive Ponzi-type scheme. On August 12, 2008, the Court granted a temporary restraining order and other relief.
According to the complaint, from at least 2005, the defendants raised approximately $255 million from about 1,200 investors, targeting members of the Orthodox Jewish community, purportedly to fund the acquisition of specified assets, the majority of which were commercial real estate ventures. Contrary to representations in the offering memoranda that proceeds would be used for specific projects, the SEC alleged that the defendants diverted funds to pay returns to investors in prior offerings and for personal expenses.
For more information about the SECís action, you can read Litigation Release No. 20678 (Aug. 11, 2008).
If you believe you were a victim of the alleged scheme, you can contact the Receiver, Timothy J. Coleman, at 1-888-518-2410 or by email at WexTrustReceiver@dl.com. For information about the Receivership, you can visit the Receiverís website.