FRAUD WEXTRUST STOLE 255M USD BY PONZI SCHEME

The Securities and Exchange Commission on Monday sued WexTrust Capital in federal court, accusing the private investment firm of running a Ponzi scheme that has defrauded nearly 1,200 investors since 2005.

According to a complaint filed by the regulator, the Chicago-based WexTrust and its founders, Steven Byers and Joseph Shereshevsky, created scores of entities through 60 private placements. While marketed as investment entities earmarked for specific investments, similar to the funds raised by private equity firms, these funds were used to pay off prior investors in the scheme, the S.E.C. said.

Among the alleged schemes disclosed by the S.E.C. was a 2005 offering to raise funds to buy seven properties leased by federal agencies ? despite the fact that the properties could not be bought.