S.E.C. v. BYERS

No. 08 Civ. 7104(DC).

637 F.Supp.2d 166 (2009)

SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. Steven BYERS et al., Defendants, and Elka Shereshevsky, Relief Defendant.

United States District Court, S.D. New York.

July 23, 2009.


Attorney(s) appearing for the Case

Alistaire Bambach, Esq., Neal Jacobson, Esq., Alexander M. Vasilescu, Esq., Steven G. Rawlings, Esq., Danielle Sallah, Esq., Securities & Exchange Commission, New York Regional Office, New York, NY, for Plaintiff, Securities and Exchange Commission.

Dewey & Leboeuf LLP, by Martin J. Bienenstock, Esq., Leo V. Gagion, Esq., Mark S. Radke, Esq., Dean C. Gramlich, Esq., John K. Warren, Esq., New York, NY, for Timothy J. Coleman, Receiver for the Wextrust Entities and Affiliates.

Dechert LLP, by Shalom Jacob, Esq., Shumuel Vasser, Esq., New York, NY, for the International Ad-Hoc Committee of Wextrust Creditors.

Brown Rudnick LLP, by Martin S. Siegel, Esq., New York, NY, for the International Consortium of Wextrust Creditors.

Sullivan & Worcester LLP, by Joshua L. Solomon, Esq., Boston, MA, for G & H Partners AG.

Lemery Greisler LLP, by Paul A. Levine, Esq., Albany, NY, for Key Equipment Finance Inc.

Nesenoff & Miltenberg LLP, by Philip A. Byler, Esq., New York, NY, for Broadway Bank.

Bond, Schoeneck & King, PLLC, by Louis Orbach, Esq., Syracuse, NY, for TCF National Bank.

Mazzeo Song & Bradham LLP, by John M. Bradham, Esq., David H. Hartheimer, Esq., Peter B. Katzman, Esq., New York, NY, for Space Park AIM Partnership and Space Park ISSB Partnership.

Meyer, Suozzi, English & Klein, P.C., by Alan E. Marder, Esq., Garden City, NY, for Nashville Warehouse Partners, LLC and Southeast Warehouse Partners, LLC.

Schoeman, Updike & Kaufman, LLP, by Beth L. Kaufman, Esq., New York, NY, for Lawrence Costa.

Samuels & Bernstein LLP, by Calvin A. Bernstein, Esq., Chicago, IL, for Munden Family Partnership, LP, LLC.

Martin Malek, Brooklyn, NY, Investor Pro Se.

Kevin McKeown, Investor Pro Se.

Timothy Holmes, Investor Pro Se.

Pess Rothschild, Investor Pro Se.

Andrew Campbell, Investor Pro Se.


OPINION

CHIN, District Judge.

On August 11, 2008, the Securities and Exchange Commission (the "SEC") filed the instant complaint against Steven Byers, Joseph Shereshevsky, and five Wextrust entities controlled by them (the "Wextrust entities"). The complaint alleges that Byers and Shereshevsky operated a massive Ponzi scheme that defrauded more than 1,000 investors of approximately $255 million.

The same day the complaint was filed, this Court...

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