WexTrust Receiver's Much Shelist Deal Nixed

Law360, New York (August 24, 2011, 6:17 PM EDT) -- A New York federal judge rejected a settlement Wednesday that would have allowed the receiver recovering money for victims of WexTrust Capital LLC's Ponzi scheme to seek $13 million from insurers for WexTrust's former firm, Much Shelist Denenberg Ament & Rubenstein PC.

U.S. Circuit Judge Denny Chin, who is overseeing the U.S. Securities and Exchange Commission's district court case against WexTrust, said the unusual proposal would give Much Shelist far too much — a broad release from future claims and the right to retain $2.38 million...
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