(CN) - The former chief operating officer of private equity firm WexTrust Capital pleaded guilty to an investment fraud scheme, Manhattan federal prosecutors said.
Joseph Shereshevsky misappropriated investors' money without their knowledge, according to the U.S. Attorney's Office.
In one instance, Shereshevsky and other WexTrust employees raised approximately $9.2 million by telling investors that the funds would be used to buy and operate seven different commercial properties that were leased to the U.S. General Services Administration. The properties were never purchased, however, and Shereshevsky and others made up a story to tell investors where their money went.
Shereshevsky pled guilty to conspiracy, securities fraud and mail fraud charges. He faces up to 25 years in prison and a $250,000 fine when he is sentenced on May 13.
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