Wednesday, April 14, 2010
Ponzi schemer Steven Byers, who targeted Orthodox Jews, admits $225 M fraud
A Ponzi schemer who targeted Orthodox Jewish communities from New York to Chicago pleaded guilty yesterday to bilking investors of about $225 million.
Steven Byers admitted he lied to investors of his now-defunct real estate fund WexTrust Capital LLC., and its roughly 120 spin-offs.
"Tell me what you did," Manhattan Federal Judge Denny Chin demanded.
"You specifically intended to defraud investors?"
"Yes," Byers said. "That's true ... I knew what I was doing."
Byers admitted he used new investors' money to pay earlier investors, and then concocted statements that lied about how much money was being made.
He and WexTrust co-founder, Joseph Shereshevsky, were arrested in 2008. Shereshevsky has denied committing any crimes.
Byers faces a maximum of 20 years in prison for the fraud and up to five years for conspiracy to commit securities, mail and wire fraud.
He is to be sentenced Sept. 13, when some victims will get a chance to speak.
"He pleaded because he's afraid of this judge," said one defrauded investor who attended yesterday hearing, but declined to give his name.
"This is the same judge that sentenced Bernie Madoff to the rest of his life in prison - and it's a similar scheme."
http://www.nydailynews.com/news/ny_crime/2010/04/13/2010-04-13_ponzi_schemer_steven_byers_who_targeted_orthodox_jews_admits_225_m_fraud.html
Steven Byers admitted he lied to investors of his now-defunct real estate fund WexTrust Capital LLC., and its roughly 120 spin-offs.
"Tell me what you did," Manhattan Federal Judge Denny Chin demanded.
"You specifically intended to defraud investors?"
"Yes," Byers said. "That's true ... I knew what I was doing."
Byers admitted he used new investors' money to pay earlier investors, and then concocted statements that lied about how much money was being made.
He and WexTrust co-founder, Joseph Shereshevsky, were arrested in 2008. Shereshevsky has denied committing any crimes.
Byers faces a maximum of 20 years in prison for the fraud and up to five years for conspiracy to commit securities, mail and wire fraud.
He is to be sentenced Sept. 13, when some victims will get a chance to speak.
"He pleaded because he's afraid of this judge," said one defrauded investor who attended yesterday hearing, but declined to give his name.
"This is the same judge that sentenced Bernie Madoff to the rest of his life in prison - and it's a similar scheme."
http://www.nydailynews.com/news/ny_crime/2010/04/13/2010-04-13_ponzi_schemer_steven_byers_who_targeted_orthodox_jews_admits_225_m_fraud.html
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