The Wextrust Receivership was created by order of the United States District Court for the Southern District of New York on August 11, 2008. The District Court terminated the Receivership on March 12, 2019. If you are a Wextrust investor or unsecured creditor with a claim recognized by the Receiver, but you did not receive or cash your final distribution check of Wextrust assets, please click here.

Background

The District Court appointed Timothy J. Coleman in 2008 to act as Receiver for the Wextrust group of companies and on December 22, 2015 appointed Jonathan W. Ware as Receiver. The Receiver was charged with managing the Wextrust companies, monetizing the estate’s assets, and with taking other actions required by law and by the Court's orders.

The same day the receivership began, the U.S. Securities and Exchange Commission filed a civil case against two Wextrust principals, Steven Byers and Joseph Shereshevsky. United States Circuit Judge Denny Chin, sitting by designation, in the Southern District of New York oversaw the case. Byers and Shereshevsky were also indicted on criminal charges in 2008. In 2011, Byers pled guilty and was sentenced to 13 years and 4 months; Shereshevsky pled guilty and was sentenced to 21 years and 10 months in federal prison.

In all, the Receiver administered more than $553 million in total claims, recovered $357 million in assets, and oversaw the management and disposition of 83 property groups consisting of 291 buildings or individual parcels of property spread across 23 U.S. states. The Receiver collected and generated over $48 million in net cash to the estate. This led to the distribution of $25.5 million to 1,221 investor victims and 100 unsecured creditors, 10.8% of approved claims. Secured creditors received approximately $308 million through the payment of regular mortgage payments, proceeds from sales of the state’s properties, and the relinquishment of properties without deficiency claims against the estate. The Receiver filed 23 interim reports and a final report with the District Court.

This website provides historic information about legal proceedings related to the Wextrust Receivership.