(PRWEB) June 24, 2012
Hearing on June 28th, 2:30, in Southern District Court New York
SEC v. Byers, 08-Civ.-7104 The WexTrust Ponzi
“WexTrust Investors Dispute Receivers Fee’s, Allegedly Inflated Expenses and Management"
The WexTrust Ponzi case is being presided over by the same judge who handled the Bernie Madoff case. WexTrust victims are hopeful that he will rule in their favor. "I believe the WexTrust Ponzi is a scandal and a travesty," says Vivian Orgel, a WexTrust Investor.
This Thursday, investors flew in from throughout the United States to dispute what the investors believe are outrageously inflated and excessive fees from the mismanagement of the appointed Receiver. Investors lost the opportunity to pursue a class action lawsuit against the neglegent third parties due to Coleman’s failure to act before the statute of limitations expired. (08-CV-7104 (DC) Settlement Hearing 11 and Conference.)
The SEC and Receiver’s alleged disregard for the defrauded investors has continued for nearly 4 years, and 10 Interim reports, leaving the victims to pay the cost of the inflated expenses. One attribution for example of the excessive fees billed in this case includes a $285 an hour charge for paralegal services, when the hourly wage for the most experienced paralegal in NYC tops out at $35. (paralegaltoday.com)
Allegedly, the SEC and Receiver’s disregard of the defrauded investors continues over 3 years and 10 Interim reports, leaving the victims to carry and underwrite the expenses. Orgel and the other investors believe Timothy Coleman, the Receiver, failed to provide transparency to the investors by failing to post fee application hearing notices in a timely manner on the WexTrust website. Ms. Orgel and the other investors feel the Receiver' management should be investigated. Such as: concealing critical financial statements and information from the investors, and other fiduciary responsibilities.
In the transcript from the “SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. 08-CV-7104 (DC, page 54, lines 8-10), Judge Chin quotes a complaint from a victim: "I feel like I've been raped twice, first by the defendant and second by the receiver and the lawyers."
An article in Forbes magazine titled: Judge to SEC - Who Guards the Guardians? stated, “Lawyers hired by feds seem to be over-billing fraud victims.”
A Virginian Pilot article, dated 6/20/12, stated: “U.S. District Judge Denny Chin in Manhattan has already expressed his concern about the amount of the fees. At a May 1st hearing Judge Chin said, "If someone had told me at the outset that we would be spending $20 million on administrative fees and professional services for the kind of returns that we are getting; of course, I would not have done it this way.’” According to court records, the professionals have been paid about $15.8 million for their services as of the end of last year. That is more than three times the $5 million distributed so far to the 1400 WexTrust victims.”
Ms. Orgel said, “The investors believe that the Receiver has been overcompensated already and demand that the overages be clawed back.”
Please attend the June 28th hearing where the investors will ask Judge Chin to order a distribution be made to the victims before anyone one else gets paid.
Please be there, write a story, or show us your support!