Ponzi Scheme Took $255 Million, SEC Says

MANHATTAN (CN) - Wextrust Capital targeted Orthodox Jews in a Ponzi scheme that took $255 million from 1,200 victims, the SEC charged today in Federal Court.

The SEC also sued Wextrust principals Steven Byers, 46, of Oakbrook, Ill.; Joseph Sherevsky, 51, of Norfolk, Va.; and Wextrust affiliates Wextrust Equity Partners, Wextrust Development Group, Wextrust Securities and Axela Hospitality.

The SEC says the defendants conducted at least 60 securities offerings through 150 LLCs and similar entities, most of which purported to be real estate ventures.

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