RSS Feed
Norfolk, VA - Federal Judge: WexTrust Civil Suit Can Proceed |
|
| |
Text Size
|
Norfolk, VA - The Securities and Exchange Commission can continue with its fraud complaint against a former officer of WexTrust Capital while prosecutors pursue a criminal case against the Norfolk resident, a federal judge said.
Joseph Shereshevsky, who had been chief operating officer and a part owner of the investment firm, requested that proceedings in the civil case be suspended until the criminal case was resolved. Shereshevsky, citing his right against self-incrimination, contended that statements he made while defending himself in the civil case could be used against him in the criminal proceeding.
Both are being heard in federal court in Manhattan by U.S. District Judge Denny Chin.
"The civil case has been pending for almost a year - without objection by Shereshevsky - and is fast approaching resolution," Chin said in a order. "A stay in the proceedings now would be contrary to the interests of the public, the victims of Shereshevsky's alleged Ponzi scheme, and the interests of justice generally."
In addition, Chin said, the risk of self-incrimination is remote, if not entirely absent, because neither the SEC nor the receiver appointed to manage WexTrust's assets currently are seeking any discovery from Shereshevsky.
Shereshevsky, who is representing himself in the civil case, said in a letter to the court that he could not adequately represent himself because he must deal with "the extremely large amount of discovery, lack of access to documents and witnesses" and other issues while being detained.
Shereshevsky and WexTrust founder and CEO Steven Byers were arrested Aug. 11 on charges of defrauding investors in specific real estate offerings made by WexTrust.
The SEC contended in a civil complaint filed the same day that Shereshevsky, Byers and WexTrust bilked investors by diverting $100 million to unauthorized uses.
In a separate case, a former officer of WexTrust's brokerage firm in Norfolk is seeking to recover $590,000 in unsecured claims from the WexTrust estate.
Michael Mostofsky, who had been director of WexTrust Securities' Private Equity Group, is one of 120 unsecured creditors who filed claims with the court-appointed receiver responsible for overseeing WexTrust assets. The receiver, Timothy J. Coleman, posted the list of more than $30 million in claims on his Web site on July 7.
More of today's headlines
“Farmingdale, NY - One trip for their Jack Russell terrier in a plane's cargo hold was enough to convince Alysa Binder and Dan Wiesel that owners needed a better option...”
Farmingdale, NY - After 4 Years of Planning All-Pet Airline Takes Off
Millburn, NJ - Town and Rabbi Drop Lawsuits, Agree to Zoning Board Hearings
Total6
Read Comments (6) — Post Yours »
1
Jul 15, 2009 at 03:13 AM AuthenticSatmar Says:
If the investment of this firm were fraudulent, why are only 2 people charged? How is the director suing for money, if he himself was involved in the scam.
Shereshevsky is not accused of a ponzi, he is accused of diverting investment funds. The trustee did find significant assets, and the major losses were suffered by Wextrust themselves being defrauded by the mine operators.
When this all comes down to it, there is little criminal in what was done. The money they spent was nothing more than management fees based on anticipated returns, something that every large investment firm does.
2
Jul 15, 2009 at 07:54 AM Anonymous Says:
“ If the investment of this firm were fraudulent, why are only 2 people charged? How is the director suing for money, if he himself was involved in the scam.
Shereshevsky is not accused of a ponzi, he is accused of diverting investment funds. The trustee did find significant assets, and the major losses were suffered by Wextrust themselves being defrauded by the mine operators.
When this all comes down to it, there is little criminal in what was done. The money they spent was nothing more than management fees based on anticipated returns, something that every large investment firm does. ”
just wondering-which one are you, really ignorant or realy naive?
3
Jul 15, 2009 at 09:01 AM Anonymous Says:
“ If the investment of this firm were fraudulent, why are only 2 people charged? How is the director suing for money, if he himself was involved in the scam.
Shereshevsky is not accused of a ponzi, he is accused of diverting investment funds. The trustee did find significant assets, and the major losses were suffered by Wextrust themselves being defrauded by the mine operators.
When this all comes down to it, there is little criminal in what was done. The money they spent was nothing more than management fees based on anticipated returns, something that every large investment firm does. ”
The question you raise
d shows you don't know the details,
so how can you come and defend
the fruad? I know Michael Mostofsky,
he's a gar szaidek. If you're talking
about color, he's black. He worked in
the biggest Wall St firms. W
extrust
Securties was a legit company. Whatever
Micheal did was 100% legit. They used him
To help them cover their fruad! People
That know him trusted Wextrust only
becuase Micheal was working there!
To understand how deep the fruad was,
Micheal and his team did secure the notes,
And all the notes were legit. The only problem,
Wextrust never end up buying the building!
4
Jul 15, 2009 at 09:01 AM Anonymous Says:
“ If the investment of this firm were fraudulent, why are only 2 people charged? How is the director suing for money, if he himself was involved in the scam.
Shereshevsky is not accused of a ponzi, he is accused of diverting investment funds. The trustee did find significant assets, and the major losses were suffered by Wextrust themselves being defrauded by the mine operators.
When this all comes down to it, there is little criminal in what was done. The money they spent was nothing more than management fees based on anticipated returns, something that every large investment firm does. ”
The question you raise
d shows you don't know the details,
so how can you come and defend
the fruad? I know Michael Mostofsky,
he's a gar szaidek. If you're talking
about color, he's black. He worked in
the biggest Wall St firms. W
extrust
Securties was a legit company. Whatever
Micheal did was 100% legit. They used him
To help them cover their fruad! People
That know him trusted Wextrust only
becuase Micheal was working there!
To understand how deep the fruad was,
Micheal and his team did secure the notes,
And all the notes were legit. The only problem,
Wextrust never end up buying the building!
5
Jul 15, 2009 at 10:58 AM Anonymous Says:
“ The question you raise
d shows you don't know the details,
so how can you come and defend
the fruad? I know Michael Mostofsky,
he's a gar szaidek. If you're talking
about color, he's black. He worked in
the biggest Wall St firms. W
extrust
Securties was a legit company. Whatever
Micheal did was 100% legit. They used him
To help them cover their fruad! People
That know him trusted Wextrust only
becuase Micheal was working there!
To understand how deep the fruad was,
Micheal and his team did secure the notes,
And all the notes were legit. The only problem,
Wextrust never end up buying the building!
”
#4: You must really know Michael Mostofsky really well that you call him a Ger Tzedek. If he is in fact a "Black" ger as you state, then he must be Michael Jackson's clone. Cause he is as white as an aryan.
He is in fact not a ger and not black. (BTW both his brothers are highly involved in very well respected yiddishe tzibur activities). On the other hand, I know Michael (aka Moshe) and you are correct to infer that he is ehrlich and got dupted.
To clarify your yennte comment that "I know Michael Mostofsky,
he's a gar szaidek. If you're talking
about color, he's black. He worked in
the biggest Wall St firms." You are not refering to Michael but rather Weldon Turner. He is an African American Ger Tzedek Talmid Chacham etc. who was (and is?) very well respected on Wall St. and got mixed up with Wextrust. Someone told me, "If Weldon is involved with this company, then it must be 100% legit, because he is impecably honest" (Kashe gerim lysrael ksapachas - they make our 'honesty' look bad)
In any case, Weldon headed a different division, lives in Israel, and based on his ehrlichkiet, not even involved in any dishonesty whatsoever.
Michael Mostofsky, directly reported to Shereshefsky, had his office just a few feet away from Shereshefsky, and by all current accounts was a bit naieve and had no idea what was going down. He was extreemly dedicated and focused on leading the capital investments and not at all involved in the operations. HKB"H should have rachmonos on him and his family.
6
Jul 15, 2009 at 09:00 PM Anonymous Says:
Sherevsky will rot in a special part of Gehinnom. Maodff wasnt frum. Shereshevsky is/was. For that Chilul Hashem alone he will rot. I dont see how Mostofsky didnt know. He is wither the biggest dope in the world or the biggest liar. He will rot one day too but not as deep as S. I know people who could ill afford to lose their hundred thousand but were assured it was legit. DOnt tell me the investment went bad, they had no right to take the money and pour it into SOuth African mines. Yes, they got duped but they should have taken their lumps and stop the bleeding early instead of stealing from Yankel to pay the crooked SOuth Africans.