Norfolk, VA – The foreclosure auctions of two Norfolk homes owned by the wife of Joseph Shereshevsky were suspended because of a court-imposed freeze on her assets, a lawyer handling the foreclosures said.
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Shereshevsky, part owner and former chief operating officer of the investment company WexTrust Capital, is awaiting trial in New York City on federal fraud charges.
Glasser & Glasser, the law firm handling the foreclosures, was notified of the asset freeze after it advertised the homes for auction, said Richard Knee, a lawyer with the Norfolk firm.
Shereshevsky was arrested in August on criminal charges of securities fraud. In a separate action the same day, the Securities and Exchange Commission alleged that Shereshevsky, along with WexTrust and co-owner Steven Byers, bilked almost 1,200 investors by diverting $100 million to unauthorized uses.
Both cases are pending in U.S. District Court in Manhattan.
Immediately after the cases were brought, the court appointed a trustee to safeguard WexTrust assets and ordered that the defendants’ assets be frozen. The court extended the freeze to assets of Shereshevsky’s wife, Elka, at the SEC’s request. Elka Shereshevsky, according to a filing by the SEC, owns a 20 percent stake in WexTrust through the Shereshevsky Family Partnership and is its general partner.
When Wachovia Corp. froze several WexTrust bank accounts in August, Shereshevsky directed his wife to open an account at BB&T and diverted assets, including some from WexTrust investment entities, to the new account, the receiver for WexTrust said in a court filing.
Elka Shereshevsky bought one of the homes that had been scheduled for foreclosure, in the 700 block of Maury Ave., in August 2005 for $1.03 million, according to real estate records. The transaction was financed with a loan from Wachovia Mortgage Co.
She bought the other home, in the 600 block of Shirley Ave., in October 2004 for $506,000. That transaction, too, was financed with a loan from Wachovia.
My Chaver in Kollel in Eretz Yisroel lost $200,000 in this fraud. His Chaver in the same Kollel was a broker for Wextrust and took all his money. I told him not to invest in Diamond Mines — absolute craziness. He said he trusted his Chaver so much because he was so rich and successful !!! So much for trust these days…
greed is the word when it comes to money there is no toirah or humanity people become animals to the fullest extent there are honest people but laider very very few it even says in pirkei avoth al tamin beatzmeha ad yom moiswho even on ourselfs we shouldnt trust until the day we die in short life is a big struggle no matter how learned or nice face someone shows you be suspicious when it comes to money its youre life
i’m in the wrong business! i need to go to kollel that way i’ll have money to invest (and lose) in diamond mines
is shereshefsky out on bail yet? last i heard he was still in jail?
#4 youre the one who is drunk, drunk with hate you just write nothing about the topic but just to express youreself in a vile manner about me youre a despicable fool