Manhattan, NY – Owner of WexTrust Seeks Easing of Court’s Bail Requirements

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    Manhattan, NY – A federal court in Manhattan has agreed to consider less-stringent bail requirements for Joseph Shereshevsky, a Norfolk resident detained on federal charges of bilking investors through a Ponzi-like investment scheme.

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    Shereshevsky is seeking a reduction in the bail amount from $10 million to $5 million and other changes in the court’s bail provisions.

    The former chief operating officer and part owner of investment company WexTrust Capital was arrested in August and accused of defrauding investors who provided funds to buy seven buildings and lease them to the federal government.

    WexTrust never bought the buildings and diverted $9.2 million of investors’ funds to other uses, prosecutors contend.

    Steven Byers, WexTrust’s chairman and its majority owner, was indicted along with Shereshevsky. Both are being held in the Metropolitan Detention Center in Brooklyn.

    At bail hearings last year, prosecutors argued that Shereshevsky might flee the country because he frequently traveled overseas and had business ties in southern Africa and elsewhere. At a detention hearing after his arrest in Norfolk, the government said Shereshevsky had been carrying a plane ticket for a flight to Israel and then London but had no ticket for a return flight.

    However, the family’s assets have been frozen, and “there is no evidence that Mr. Shereshevsky has assets secreted somewhere that he could use to flee,” Michael O. Hueston, his court-appointed attorney, said in a motion to change the bail terms.

    Hueston asked the U.S. District Court in Manhattan to reduce Shereshevsky’s bail to $5 million from the $10 million imposed in September. The attorney asked that bail be secured by five individuals with financial resources rather than 10. Shereshevsky’s request lists 11 candidates, including seven family members and in-laws, who are willing to fill such roles.

    Shereshevsky, the motion said, would be subject to home detention and could leave it only for religious, medical or legal obligations. The motion, however, said he should not have to be accompanied by a private security guard whom he would pay for, a requirement imposed last year.

    U.S. District Judge Denny Chin said in a court filing that he will hear oral arguments on Shereshevsky’s request April 28.

    In a separate complaint brought by the Securities and Exchange Commission, Shereshevsky and Byers are accused of defrauding at least 1,196 WexTrust investors by diverting $100 million to unauthorized uses.


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    16 Comments
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    Anonymous
    Anonymous
    14 years ago

    He should be treated atleast the way Madoff was treated by allowing him to be home pending trial, and also if you compare the amount he allegedly defrauded to the amount that Madoff did, then the bail amounts makes no sense whatsoever, you see lately such disparity from one case to another that it just makes no sense, and especially when it comes to sentencing you see such differences from one case to another, what a system we got! there is a Yid in Oatisville prison that was sentenced to 27 years! and guess for what crime? Murder? absolutly not! he defrauded a total amount of 4 mil. and even paid everything back, but is serving a 27 yr. sentence!

    Anonymous
    Anonymous
    14 years ago

    Yossi hurt so many people, I really feel like he should stay away(i.e. in jail) from the people he hurt. Letting him go home to Norfolk is putting salt on the wound. What do you think?

    joe
    joe
    14 years ago

    we should be having empathy for the victims who were defrauded by these low life bums.what happened to the money that was stolen? we need not feel sorry for his family. he did not think of them when he committed the crime.

    lo sikom
    lo sikom
    14 years ago

    I think ur a bigger rosha then him. if he did the crime he’ll do the time. but to keep him away now pre trial is a rishus to him his wife and his kids. u wanna stay away …stay away. but until he’s convicted. he is innocent in american law..and probably jewish law as. well. this is coming from someone who personally lost his lefe savings with yossi. hashem gave it hashem took it and will return it if I’m zocheh. nikoma isnot going to make me richer

    misterzee
    misterzee
    14 years ago

    1.this gonif has to be kept off th estreets becaus eif freed he will continue to do what he has done till know,though no investor will give him money there is a good chance that he has funds in south africa or some other place and being out of prison would give him that opputunity.
    i lost a bundle with him and i am not out for revenge but a goniff belongs in jail,and do not through me innocent until proven guilty ask all th efrumen yidden who were conned by him,that is guilty enough for me
    it is a terrible tragedy with his family,but the time he is serving will be deducted from his scentence
    2.nobody in ottisville is serving a 27 year scentence.it is a minimum security which means any scentence over 5 years can not serve there.the reason is that you can escaoe ottisville as there is no fence around it,but escape and get caught you get another 5 years,so if someone has under 5 years he would not risk it,but 27 years,it is worth the risk’info from a freind who spent 9 months there.

    It's Me
    It's Me
    14 years ago

    No good can come from him coming back to Norfolk. If he is released he should stay in NY. If he should come back here, he really should rethink having private security. Many people who are not frum are very angry, still.

    Anonymous
    Anonymous
    14 years ago

    The fact is that one of the greatest mitzvos in the Torah is “pidyon shevuim” you can check with any previous posek. I never saw anywhere not in the Rambam, or Sulchen orech etc. were they make a difference for which crime a jew was arrested. Some of our previous gedolem are only known these days because of their involvement in Pidyon Shevuim like Reb Moshe Leib Sassever Z”tl and the Shpoller Zaida Z”tl. If you know history some of the people they helped weren’t arrested for no good reason like you read in the story books. But still if this is a yid there is a mitzvah of pidyon shevium which according to the poskim one has to sell even holy items for this mitzvah.

    schockett
    schockett
    14 years ago

    Re:#8comment….the grandchildren of the shpolya zeide are buried in old montifiorie cemetary near the monistrishter rebbe,zl (queens).

    Anonymous
    Anonymous
    14 years ago

    I say let him rot in jail. How many yidden lost their life savings with this gonniff and his partner in a delibrate scheme to defraud frum yidden. I have heard stories of many people in this situation due to this oisvorf’s fraud against mainly his own people. Pidyon Shevuyim is a great Mitzva without a doubt but it also says in the Aseres Hadibros “Lo Signov”. Since this is at least the 2nd time he was caught stealing from Frum Yidenin, I say again let him rot for 50 years.

    misterzee
    misterzee
    14 years ago

    1.there is a takanath hashavuim,if every frum criminal thinks he will get pidyon shivuim,that does not work.rubashkin was pidyon shivuim as well as pollard and it seems to be that must poskim say the same for japan chassidishe smugglers.nobody says that for wextrust or maddoff
    also what was samet’s crime?be ready for alort more frummer problems as the fbi goes nuts with mortgage fraud,i believe 2 yidden got long terms allready.
    yasher koach for the two tier structure at ottisville,never there,hope never to be there.

    stop distorting the meaning of pidyon shvuyim
    stop distorting the meaning of pidyon shvuyim
    14 years ago

    Pidyon shvuyim does not apply in all cases when a Jew is in trouble with the law. The ikkar meaning of it is when someone innocent is captured chas vesholem, like by pirates off Somalia. When someone is a crook they have to be brought to justice. That is one of the great mitzvos of the Torah and one of the things that world exists on as it says in Pirkei Avos. When someone is dealt with by a basically fair judicial system, even if its not always 100% perfect, we do not consider them the same as innocent people who were captured by pirates and similar, G-d forbid.

    FCI Otisville
    FCI Otisville
    14 years ago

    B’H

    For the interest of the argument…
    Here is the information from the BOP (Bureau of Prisons) web page regarding Otisville (properly known as ‘Federal Correctional Institution (FCI) Otisville’):

    “The Federal Correctional Institution (FCI) in Otisville, is a MEDIUM security facility housing male offenders. The satellite PRISON CAMP is a MINIMUM security facility that also houses adult male offenders.”

    Descriptions, also from the BOP website:

    MINIMUM SECURITY:
    Minimum security institutions, also known as Federal Prison Camps (FPCs), have dormitory housing, a relatively low staff-to-inmate ratio, and limited or no perimeter fencing. These institutions are work- and program-oriented; and many are located adjacent to larger institutions or on military bases, where inmates help serve the labor needs of the larger institution or base.

    MEDIUM SECURITY:
    Medium security FCIs (and USPs designated to house medium security inmates) have strengthened perimeters (often double fences with electronic detection systems), mostly cell-type housing, a wide variety of work and treatment programs, an even higher staff-to-inmate ratio than low security FCIs, and even greater internal controls