Wextrust Is A $225 Million Ponzi Scheme The SEC Says
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Joseph Shereshevsky, a felon, and his partner Steven Byers fraudulently raised $225 million from nearly 1,200 investors, the SEC claims in Federal Court. The SEC says the men are running a Ponzi scheme through Wextrust Capital, other Wextrust entities, and Axela Hospitality.
Also sued are Wextrust Equity Partners, Wextrust Development Group, and Wextrust Securities. The defendants created 150 LLCs and conducted at least 60 private placement offerings "without disclosing that funds raised were actually being used to pay prior investors n unrelated offerings and to make unauthorized payments to fund the operations of the Wextrust Entities, which were operating at a deficit," the SEC says.
Wextrust has "borrowed" at least $74 million from the LLCs and "loaned" at least $54 million to them, the SEC says. It wants funds frozen, books and paperwork, disgorgement, injunctions and penalties.
Byers, 46, of Oak Park, owns 60% of Wextrust, the SEC says.
Shereshevsky, 52, aka Joseph Heller or "Yossi," lives in Norfolk, Va. He pleaded guilty to bank fraud in 2003 and was sentenced to time served and ordered to pay $38,800 in restitution.
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Chicago Business Fraud Attorney
Business Fraud can take many forms. In the broadest terms, a fraud occurs when someone intentionally deceives others for personal gain. Many times business fraud is harmful and recovery is necessary. Losing your personal or business’s assets can devastate your entire life. Contact Roth Law Groupto receive help on restoring your business to normalcy before you were victimized with fraud. Business fraud cases can involve multiple people and complicated schemes aimed at deceiving the public, auditors, investigators, or others. Whether you are dealing with corporate fraud or commercial fraud, we can step in and fight back to receive compensation that you deserve.
At Roth Law Group we are devoted to prosecuting and defending the legal rights of individuals and small businesses, as either plaintiff or defendant. Proving fraud can be extremely difficult. To have a successful business fraud case, one must prove that the defendant purposefully set out to defraud the victim. Fraud cases are being investigated more aggressively than ever. With increasing federal regulation and scrutiny of corporate practises, many individuals and businesses find themselves the subject of business fraud investigations.