WexTrust Capital Preliminary Court Hearing is a Can’t Miss for Investors
On Thursday, September 4th, the Honorable Denny Chin of United States District Court, Southern District of New York, will hold a preliminary hearing that is of the utmost importance for investors in any of the WexTrust Capital entities and their dealings with Joseph Shereshevsky and Steven Byers. Zamansky & Associates will attend the hearing in furtherance of the investigation on behalf of WexTrust Capital investors.
Among the issues investors may learn of is the status of the myriad WexTrust Capital entities and perhaps understand what the values of those assets are, and just as important, whether they are liquid. Furthermore, investors may learn whether any of the WexTrust Capital investment vehicles, or the individuals Joseph Shereshevsky or Steven Byers, plan to file for bankruptcy protection. This obviously would have a significant impact on investors pursuing their claims.
Extremely significant to investors is whether Judge Chin will lift the stay from filing claims and allow investors to individually act to recover their investments and seek restitution for the alleged WexTrust Capital fraud. We have heard from multiple WexTrust Capital investors interested in pursuing claims against the WexTrust entities and potential third-party participants.
It is likely we will be briefed on the investigations taking place by the SEC at the hearing and potentially the U.S. Attorney. More is certainly to come and clearly this is a pivotal point for WexTrust Capital investors.
Previously, we wrote an extensive analysis on WexTrust Capital and our own investigation. Investors would be advised to read it and contact us if there are questions. For more information, the following resources include added details:
- WexTrust Capital SEC Complaint
- WexTrust Capital Receivership website
- WexTrust Capital news articles:
- Two Wextrust Capital Owners Are Arrested, Wall Street Journal
- WexTrust Capital Owners Charged in $100 Million Fraud, Bloomberg
- Court-appointed receiver takes over WexTrust Capital, Virginia Pilot
- U.S.: WexTrust Capital owners duped Orthodox Jews, Chicago Tribune
- Joseph Shereshevsky, Steven Byers scammed Orthodox Jews, stole $100M: feds, Chicago Sun-Tribune
- Feds sue Wextrust, allege $255M ponzi scheme, Atlanta Business Journal
- WexTrust Capital Alleged to Scam Orthodox Jews, HedgeFund.net
- WexTrust Execs Arrested For Diverting Funds, North County Gazette
- SEC Accuses WexTrust of Ponzi Scheme, NY Times blogs
Jacob ("Jake") H. Zamansky is one of the country’s foremost authorities on securities arbitration law, the legal recourse for investors claiming broker wrongdoing, or for brokers claiming wrongful termination or other misconduct by their employer. Zamansky & Associates, the New York-based law firm he founded, represents both individuals and institutions in complex securities, hedge fund, and employment arbitrations.
Ben Salomonsky Commented on August 21, 2008 at 12:19 pm
Dear Mr. Zamansky:
I am one of the individuals who was duped by Messrs. Shereshevsky and Byers, via the Wexford High Yield Debt Fund III. I, also, can state that I am probably of the least means to endure such a hardship.
As an older gentleman, who is a single father of a twelve year old son; I was sold on the idea of mortgaging a “paid-in-full” home, so that Wextrust’s distributions could pay all (or most) of the monthly mortgage, and I could use the remaining uninvested funds to take care of various affairs after a protracted divorce.
Now, with what they did to me (and almost 1,200 other trusting souls); I may lose my home, and my son and I will be among the homeless.
We stopped receiving distributions; but, we thought that we had our Principal as a cushion, to which its anniversary date for its return was 12-15-08. Now, we have nothing.
I can only pray for a swift and expeditious resolve.
Please feel free to keep me posted via e-mail, should you have a moment.
Respectfully,
Ben F. Salomonsky