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21. spatny
    Member

    More from Zamansky:

    WexTrust Capital Preliminary Court Hearing is a Can't Miss for Investors

    by Admin on August 21st, 2008 at 12:19 pm : Comments 000

    On Thursday, September 4th, the Honorable Denny Chin of United States District Court, Southern District of New York, will hold a preliminary hearing that is of the utmost importance for investors in any of the WexTrust Capital entities and their dealings with Joseph Shereshevsky and Steven Byers. Zamansky & Associates will attend the hearing in furtherance of the investigation on behalf of WexTrust Capital investors.

    Among the issues investors may learn of is the status of the myriad WexTrust Capital entities and perhaps understand what the values of those assets are, and just as important, whether they are liquid. Furthermore, investors may learn whether any of the WexTrust Capital investment vehicles, or the individuals Joseph Shereshevsky or Steven Byers, plan to file for bankruptcy protection. This obviously would have a significant impact on investors pursuing their claims.

    Extremely significant to investors is whether Judge Chin will lift the stay from filing claims and allow investors to individually act to recover their investments and seek restitution for the alleged WexTrust Capital fraud. We have heard from multiple WexTrust Capital investors interested in pursuing claims against the WexTrust entities and potential third-party participants.

    It is likely we will be briefed on the investigations taking place by the SEC at the hearing and potentially the U.S. Attorney. More is certainly to come and clearly this is a pivotal point for WexTrust Capital investors.

    Previously, we wrote an extensive analysis on WexTrust Capital and our own investigation. Investors would be advised to read it and contact us if there are questions. For more information, the following resources include added details:

    WexTrust Capital SEC Complaint
    WexTrust Capital Receivership website
    WexTrust Capital news articles:
    Two Wextrust Capital Owners Are Arrested, Wall Street Journal
    WexTrust Capital Owners Charged in $100 Million Fraud, Bloomberg
    Court-appointed receiver takes over WexTrust Capital, Virginia Pilot
    U.S.: WexTrust Capital owners duped Orthodox Jews, Chicago Tribune
    Joseph Shereshevsky, Steven Byers scammed Orthodox Jews, stole $100M: feds, Chicago Sun-Tribune
    Feds sue Wextrust, allege $255M ponzi scheme, Atlanta Business Journal
    WexTrust Capital Alleged to Scam Orthodox Jews, HedgeFund.net
    WexTrust Execs Arrested For Diverting Funds, North County Gazette
    SEC Accuses WexTrust of Ponzi Scheme, NY Times blogs
    Filed under Investment Fraud, Wall Street, WexTrust Capital
    and Joseph Shereshevsky, Steven Byers

    Posted Saturday Aug 23, 2008 00:06 #

22. spatny
    Member

    Here's a project they were doing...

    WexTrust Capital Acquires the 221-room Days Inn in the Lincoln Park Area
    of Chicago; Planning A Multi-million-dollar Renovation and a New Name
    .

    CHICAGO—”(July 10, 2006)—”WexTrust Capital, through its affiliate Gold Coast Investors, LLC, has acquired the former 221-room Days Inn in the Lincoln Park neighborhood of Chicago from 1800 N. Lincoln, LLC for an undisclosed price. The hotel has disassociated with the Days Inn brand, and, for the balance of 2006 travel season, the property will be operated as the Gold Coast Hotel. Following an extensive multi-million-dollar renovation scheduled to begin later this year, the hotel will re-open in the spring of 2007 with a new name and be operated as an independent boutique lodging destination with the goal of creating an experience of comfortable sophistication for both hotel guests and neighborhood residents. Once complete, the hotel will include 196 fully-appointed guest rooms, a completely reconfigured lobby-lounge area, approximately 2,000 square-feet of meeting space, a fully-equipped fitness center, independently operated spa services, and a new restaurant concept befitting the Lincoln Park lifestyle. Interior design and architectural services are being overseen by Chicago-based Gettys Group. The hotel will be managed by Portfolio Hotels & Resorts.
    “This was an under-utilized hotel in a prime location that we felt offered an excellent redevelopment opportunity,— states Michael Kochevar, senior vice president of acquisition and development at WexTrust Capital, speaking on behalf of ownership. “We look forward to transforming this property and making it a premier location for tourist and business travelers alike as well as remembering that this is an important asset for the Lincoln Park neighborhood.—

    Edward L. Dushman, vice president of WexTrust's retail leasing division, continues, “We have been approached by many high profile restaurateurs inquiring about our plans for the lobby-level lounge and restaurant area which certainly did not surprise us at all. When you consider our location, the property is at the nexus of the Gold Coast, Lincoln Park and Old Town.—

    Conveniently located in Chicago's trendy Lincoln Park neighborhood at 1816 North Clark Street, the Gold Coast Hotel is within walking distance to the Lincoln Park Zoo, the Chicago Historical Society, Wrigley Field, area beaches, restaurants and shopping. For reservations or information visit www.thegoldcoasthotel.com or call 312-664-3040.

    About WexTrust Capital:
    Headquartered in Chicago, WexTrust Capital operates as a private investment firm specializing in real estate related assets and operating companies. Since 1994, WexTrust Capital has underwritten well over one billion dollars worth of debt and equity transactions. Over 400 investors have taken advantage of the WexTrust Capital approach —“ which focuses of providing increasing yields through debt and equity related instruments in high-quality income producing real estate. Regional office locations include New York, New Orleans, Nashville, Norfolk, Tel Aviv and Johannesburg. For more information on WexTrust Capital visit the company on the Internet at www.wextrust.com.

    Posted Saturday Aug 23, 2008 00:17 #

23. spatny
    Member

    I think we ought to look into the possibility of hanigng a mural around the front and sides of the Arcade building to cover the entire first floor (except for Grumpy's, of course) and have it painted to look like what we want the Arcade ot look like when finished. The arts community in Riverside ought to be able to do that with a little money from the Chamber of Commerce and the Village. Construction on this thing is going to be stopped for a long time to come, and it is certainly an eyesore in its present condition. This would certainly be a way to make it look better for the duration. It could be painted to look like what we want to be there just as they do banners and billboards. Maybe we could use something like "Nighthawks" for the restaurant part so it would give the idea to people that this will, someday, be a viable location. If the judge allows law suits from investors to be filed after the 9/4/2008 hearing it will be a long time before the receiver gets it sorted out so that any of these properties can be sold. Since they paid a little over $3 mil for the property and may have put a few hundred thousand into it so far, the investors will squawk if it is sold at a more reasonable price, one that would make it possible to finish it and still charge reasonable rents. That would, of course, be great if it happened, but don't hold your breath. The legal eagles will milk this for all they can, and that means dragging it out. Too bad for us.

    Posted Sunday Aug 24, 2008 17:25 #

24. spatny
    Member

    First delay (of many) in this saga:

    http://www.wextrustreceiver.com/documents/letters/08cv7104%20-%2011.pdf

    Posted Monday Sep 1, 2008 12:47 #

25. Catherine
    Member

    In response to our grave fiscal emergency, we have launched a new village website. I am sure there was no cost associated with this, as we apparently are bankrupt without a new tax increase.

    Posted Thursday Sep 4, 2008 17:29 #

26. Frantzis
    Member

    Catherine, regarding the "new" website, either you are referring to updates to the main Village website made by the outgoing (and not being replaced) intern or the link to the new Riverside Museum website (www.riversidemuseum.net) which is being paid for by a volunteer member of the Historical Commission (not me).

    Also, when can I expect an apology for our exchange at the beginning of this thread - one in which I was providing accurate information and you most definitely were not. I was accused by you of McCarthyism for my trouble which provided no small amusement to people who actually know me.

    Lastly, if you and Spatny want to sink your pit bull mentalities into something that can actually do the Village some good, I invite you to help me identify precisely where the removed stained glass windows from the Arcade Building are stored, and then help press the Village (perhaps via letter from the Village Attorney) to let Wexford and the law firm that is handling their assets know that those windows must be restored to the Arcade Building or the Village will pursue legal action. Being a banker I know how these things go. It will be cheaper to sell these windows as is for a quick buck than to restore and reinstall them. I fear this will happen unless the Village demonstrates an interest in the windows whereabouts and fate. My efforts to press the Village on this point so far have literally been dismissed. I foresee years of passing the Arcade Building and cursing the tragedy of letting one of its most prominent and glorious features slip through our fingers while we were endlessly squabbling.

    Posted Friday Sep 12, 2008 12:06 #

27. Catherine
    Member

    No, I am referring to the eflash from the village that we have a new website. Same address. See 9/4/08: New Website & E-FLASH on your eflash.

    Rather, I am waiting for your apology for saying no one who 'loved' Riverside could object to a paid historical museum director even during a fiscal emergency where we cannot afford fire, police and infrastructure spending required, as the village says. So you are saying I do not love Riverside. Trying to intimidate people into agreeing with government policy by casting aspersions on their love or loyalty to patria or place is precisely "red-baiting", which is the term I used, not McCarthyism, what Sells turned it into after his usual distorting fashion.

    http://www.mysuburbanlife.com/riverside/news/x160318710/New-part-time-director-comes-in-to-raise-awareness

    McCarthy was unstable in significant part, but red-baiting did not begin nor end with him, nor is it always practiced as ham-handedly.

    Perhaps you should tell the trustees that they don't 'love' Riverside, since they are cutting the paid historical museum director.

    You can also apologize for characterizing our mentalities as pit-bull, and implying we do the village no good. Spatny pays for trees out of his own pocket. We tried and help succeed in stopping the TIF-induced marching rows of monster condos through and around our downtown. I spent countless hours researching the law around the TIF and wrote an extensive memo to the Board warning the public purse might be in for a lawsuit. We watch the public purse. We call government to account. Why don't you tell every watchdog group to go out and do what you think it is good for them to do. Like Sells said, get everyone in "lock-step" with you.

    Having made those apologies, we might agree to be seen as making common cause with you.

    LOL. That having been said, your point about the windows is a good one. There is a lawyer on the Preservation Commission who is very able. It was she who tutored the village on the goverment incentives available to landmarks. She would know if the landmark status protected the windows. In any event, if the job can get done she would know how to do it without a need to reinvent the wheel. She used to post here as Aberdeen. I do not like to publish folks' names without their permission.

    Posted Friday Sep 12, 2008 13:13 #

28. Frantzis
    Member

    The landmark status indeed protects the windows. If the attorney on the Preservation Committee can help provide direction on the best way to ensure the windows are reinstalled then we are on the right track. I reached out to the Preservation Commission Chair on this issue through Village channels and the response was that Wexford is required to reinstall the windows - but no mention of determining the whereabouts of the windows or a letter from the Village demonstrating we are keeping our eyes on this matter. I am not sure if my concerns were communicated correctly to him.

    Posted Friday Sep 12, 2008 13:49 #

29. spatny
    Member

    Frantzis - whoever you may be: I don't know who you are or what wonderful things you do, but I'm willing to learn. Why not put your real name ion what you write? FYI - I was the one that initially brought to light the infamous morning meeting that spawned Res. 63 and FOIA'd the Village to get the memo where they "discussed" giving all that dough to Wextrust. I was warning them this deal was fishy more than two years ago when the building was sold for far more than it was worth. I was the one that the Village lied to about why they needed the one-item morning meeting saying it was because they were paving Quincy and wanted to avoid doing it twice. I don't know who you are and don't really care - but I will NEVER relent in resisting giving this group of people any more money to play with. They have made awful mistakes with all the projects - and have spent hundreds of thousands of dollars on idiotic schemes and the consultants that pedaled them, and it is they that are the root cause of our present dilemma, such as it is. The Wextrust guys have been doing a lousy job on this building and evading doing what everyone wanted - a sensitive and accurate (if mechanically updated) restoration. It will probably be plastered with mechanics liens from contractors and tradesmen and all kinds of lawsuits from the investors. They sold the Village a bill of goods at every turn, and now who knows how many of their more than 100 'deals" this poor little property has been included in.

    I warned the Village that we might end up losing this building way back when the deal was first announced, and now it may well come to pass. Having the Village Manager foist off platitudes that "it might be fixed up enough to open with perhaps $50K" as she proffered at the EDC meeting, or that she expects them to complete it, or whatever, is just window dressing. We need to understand that the lawyers that are in charge of this are - like many lawyers - going to draw the maximum in fees from this while they can, and will not rush to our rescue. Sure protect the windows - but understand that the entire building is in jeopardy of being lost.

    Posted Friday Sep 12, 2008 21:37 #

30. MikeT
    Member

    I see some common ground amongst the participants in this thread - finding and securing those original stained glass windows from the Arcade Building. I bet most in this town also would like to see these unique valuable assets secured. Why the Village officials have not been responsive to Frantzis' queries is a troubling mystery to me. We only have one Arcade Building. Let's not lose it piece by piece. Since its owners seem to be in a rather precarious financial state, we have to watch that the whole thing is not lost, either.

    Citizen monitoring is essential to keep Village Administration on the right track. Thank you all for spending time watching, writing to papers and on internet forums, and showing up at meetings.

    Posted Friday Sep 12, 2008 22:29 #

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