Norfolk, VA – Individuals who invested with WexTrust Capital are unlikely to recover much of what they put into the company’s real estate deals and other investments, a New York securities lawyer predicted.
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“I don’t know how much will be there, but I expect a huge shortfall,” Jacob Zamansky, the lawyer, told about 100 people seeking information about the Chicago-based company and its assets.
However, investors in WexTrust’s real estate projects and high-yield loan funds may be able to collect from banks, brokerage firms, lawyers and accountants who had oversight roles, Zamansky told the gathering at the Norfolk Airport Hilton hotel. That’s because investor losses probably would have been more limited had banks and other institutions been alert to what WexTrust was doing, he said.
Zamansky, who specializes in cases involving securities fraud, is one of several lawyers talking with WexTrust victims after the filings by the Securities and Exchange Commission and the U.S. attorney for the Southern District of New York.
In a filing in federal court in Manhattan last month, the SEC alleged that WexTrust and two of its owners defrauded almost 1,200 investors of $100 million by diverting funds to unauthorized purposes, including payments of company and personal expenses.
The U.S. attorney for the Southern District of New York also filed a criminal complaint against the two owners, Joseph Shereshevsky of Norfolk and Steven Byers of Oak Brook, Ill.
Shortly after the two were arrested, the federal court in Manhattan appointed a receiver to protect WexTrust assets. The court also froze the defendants’ assets and temporarily barred any claims on those assets.
Investors will get a better idea of what they might be able to recover when the receiver presents his findings to the court on Sept. 19, Zamansky said.
During Tuesday’s 3.5 -hour meeting, WexTrust investors peppered Zamansky with questions about the status of particular projects, including hotels in Chicago and Phoenix that were supposed to be acquired and renovated.
Some of WexTrust’s stated real estate projects, including one that said it would buy office buildings for lease to the federal government, proved to be phony, according to the SEC’s complaint. Still, the receiver may be able to track down the money for this project and others, Zamansky said.
That prompted questions from a handful of investors as to whether the receiver might dispose of WexTrust properties at fire-sale prices. That’s not likely to happen, Zamansky said. However, some WexTrust projects that are performing well might be carrying heavy mortgages, which would leave little for investors, he cautioned.
The court, he said, will have to approve each of the receiver’s recommendations for disposing of WexTrust assets.
“The question is going to come up at some point, ‘How is this money going to be distributed?’ ” Zamansky acknowledged. And that, he said, is likely to prompt a lot of legal maneuvering.
Some who attended the gathering said they had not yet determined what, if any, legal action to take.
“I’m still listening” and trying to learn more about the recovery process, Floyd Williams, a Virginia Beach resident who invested in WexTrust projects in Chicago and New York City, said after the meeting.
very tragic. with the funds allegedly all intermingled with each other, this can turn out to be an accounting nightmare.
Ganovim: Lo signov is not in his asseres hadibros ..Shame on him, shame on him..But blame the victim is true in this case..Why do people fall for these sweet talkers gazlonim? if its to good to be true its not true..always remember that
After the lawyers will take their cut of course there will be nothing left for the poor investors.
the lawyers dont get pd by the company learn your facts
I think they lawyers get paid by the funds they recover. Who else will pay them?
This was no 18% scheme like David Schick. These were well documented offering memorandums for real deals. THey offered 8-12% preferred returns and the numbers and projections made sense. The problem was he was running out of money on his more personal deals, like the Namibian diamond mines, and borrowed from the good deals to support the bad deals rather than just tanking them. So dont blame the investors for being greedy, they were being astute and trusting. Anyone can steal your money, but the world is built on trust and the laws to punish those who violate it. He will be sitting for many, many years after this. His life is ruined, his family life is ruined, and his children will forever bear his shame.
The lawyer at the meeting was just playing on the fears of the investors. He knows little about the properties.
Just says “doesn’t know what you will recover, he predicts…..huge shortfall etc..
Maybe we can sue and collect from banks etc”. (Then the newspaper writer headlines unlikely to recover)
In otherwords just hire me….
This is all lawyer business
Don’t fall for it, you have to be very wary about anyone who claims he can get for investors money.
There seems to be plenty of money in many of the properties which should be distributed to the investors once it will be sorted out.
(Naturally after expenses)
The someone who tells everyone to get there facts srtaight IT IS THE COMPANY MONEY FROM WHERE THE LAWYERS GET PAID & GET YOUR FACTS STRAIGHT
Sounds like lawyer doesn’t know much about these investments, just looking for business.
He says “I don’t know…, he predicts.., he expects huge losses. Then if we sue banks etc.”
Then Newspaper writer headlines investors unlikely to recover much.
Be wary of lawyers looking for your money, just playing on fears of investors.
There should be a lot of money there in good properties once they sort out the mingling of funds
just to let u know that! many of the investors/victims need now to go mechazer al hapsuchim, to pay for regist. and schar limud for cheder/girls school for the new zman, and to pay for the upcoming yom tov expenses because of this giant baal chesed b’doreinu, its “TRUE” nebech… they never had to shnor b”h for them self . its a fact nebech ehey lost hundreds of thosands $$$$$$$$ min. investment was no less then $100,000.00 so may b he mar shershevsky shlita, should go for vacation for a few years together with elka
the problem really was, he was living a lavish lifestyle like the gottis/gambino’s, giving tzedokah, 2 private jets, throwing parties, wages for himself 75,000.00 a month then bonuses from offerings another $1.600.000.00 a year, plus big $$$ for zelda/elka his wife, no show job, chaufers, in va. and ny. 3 lexus cars, the newestcould park by itself staying nights in ny $2500.00 night plaza suites then his partner steve buyers from ill. goi wasn’t farbehind,,, +++++++++++
the reciver dosent think twice b 4 spending big $$$$$$$$$ for the invetigation ,btwn all the branches u r talking about 50 employees from the recivers off. (flying the private jet btwn all diffrent branches globally)and lets not forget the e.mail where he said that he is in the red for 19 months one million dollars a month , then the attny’s fees. for like other 5 people of the mngt. of the co. it will take years and by the end of the day, when its all said and done may b will b left “if we r lucky” .10 cents on the dollar .. beleive me nothing u could do , but that will b the END……
would be nice to post a picture of this baal “CHESED” who took for him self many many yidelech’s hard earn’d sweat’d money, left them holding the bag , and did send many well to do yidelech to the “POOR house” including me and my children …
he knew that: he didnt buy some of the prop.
he knew that: he over raised millions of dollars then was said in the ppm
he knew that : his wife was not an employee of wextrust
so we (victims/investors) come to the conc. that mr shershetzki didnt fall because hard and difficult times in the financiald world, but he was a ganev l’chatchilah (with a l’shem yichud) and a crook from day one! and all the so called “chesed” was hokos pokos to take away our hard earnd money, and to put us and many goyim in the POORHOUSE,(what a chilull hashem) now where do we turn for nedovah??????? that his/our assets, and his wife’s zelda/elka fat bank accts. r frozen , mr. heller i need a few heller for yom tov, tell me where does the next gazlan of the century like u live ,,, i need a nedoveh because of u , please help
That’s why MR. Shereshevsky should name his future “Investment” Co. (It’s like the Roach Motel commercial. “They check in but they don’t check out”)! KEREN HaTZVI or HIRSHHORN INVESTMENT GROUP! An ancient Talmudic description of such kind of investments is as if [he/she] “Put Their Money on the Horn/s of a Deer”!!!
new “idiot” no its not al keren h’tzvi , because thats how the finan. world works , dinah d’malchusah dinah , u trust the sec. ex comm. controled by the usa , but if u want to be a crook, u’ll pay the price , nobody ever dreamed that a heimishe yid will b such a ganev and so stuppid to this , they many many co. doing these kind of offerings , day in and day out, so u trust the sec , they r policeing it . it wouldnt surprise me if they put him away for 766 yrs. like they did with another baal chesed , who lives now in orlando florida for the rest of his life .. the weather is very nice and comfotable all year round , its close to mickey mouse plus a lots of attracions ..
raboisei mir senen in ……. bought nice condo, part of the mortg. will be paid by the income coming in quaterly from my solid investment from wextrust, but no money coming for the last 8 months ,and i lost my job as mortg. broker, due to the financial crisis, i am paying my mortg. now from my savings acct. very little left in the acct. like in 2 months i dont know from where i will cover my exp. i tought that i made the greatest investment of the century, difficult for me to learn that i am involved in the biggest ponzi scam of the century .. i hope that the bank wont forclose on my unit .. hashem please why me .. hoping for miracles, oy nebech what a bal chesed mr. shereshefsky
his attny. wants to get mr. sher. out for 5 million dollars bail, again “i am”: the real bal chesed
Here’s a letter I’m mailing tomorrow. If you were affected, please change it to make it your own and mail one too. His wife got 10 people to sign in support of letting him out on bond. Let’s have 500+ sign to keep him detained.
Honorable Denny Chin
United States Courthouse
Courtroom: 11A
500 Pearl St., Room 1020
New York, NY 10007
Dear Honorable Denny Chin,
I am writing to urge you to deny bail on September 22nd for Joseph Shereshevsky. I am among those victims whose life savings was squandered and/or stolen by the defendant. Mr. Shereshevsky’s life has been built on lies, and he cannot be trusted to honor any commitment made to the court. According to the court docket, when Joseph Shereshevsky was convicted of bank fraud in 1993, he fled from authorities before being caught. As a father of 5 children, his ties to the community were pretty strong then, and he attempted to flee in spite of his fatherhood duties. He not only has much more at risk now, but he has many more resources at his disposal to assist in his attempt to hide in another country.
Please detain this con man in jail where you can ensure he will be present during the SECs investigation and for the trail that will determine Mr. Shereshevsky’s fate.
Sincerely
The lawyers are in it for themselves. I was at one of the meetings and I think that they are sneaking rats. They double talk and make statements about values they know nothing about. What is Coleman’s fee per hour. $500, $800, what is it? They have not disclosed it.
The receiver, Timothy J. Coleman, wants over $60,000 just for the first work he did along with $90,000 of expenses. The law firm he works for, Dewey & LeBoeuf LLP, has demanded over 2 million dollars for a few months work. It’s a tremendous joke. They receiver is very familiar with the court and the judge and was appointed by them. His fees and expenses will be reviewed by these same people. The only ones left out of the entire process are the shareholders. They have no say in what to do with their own money!!! At the end of the day the lawyers’ fees will eat up a huge amount of the remaining assets and they will claim “victory” in saving a tremendous amount of money that could have been easily accomplished by less “capable” (see also expensive and self-loving) professionals. There aren’t enough orthodox lawyers and accountants in the community who wouldn’t have gladly pored through the material at reduced fees with the potential to actually recover something? Bottom line – the receiver and the Leboeuf law firm have absolutely no incentive to do a good job, only one that bills the maximum without causing an actual holdup with nuclear weapons.
yossi doesnt have 3 lexus , and what if he wasnt the one that broke the law …….can these bells all be un rang………america people youve tried him i believe that is for a judge i lost money too but i would like all the facts not what youve read on the internet