Steven Byers and Joseph Shereshevsky are being charged with diverting at least $100M of investments to repay old investors in what is know as a Ponzi scheme. Mr. Shereshevsky, the agency said, is a convicted felon who pleaded guilty to
bank fraud in 2003. He took the lead in soliciting investors through his
wide-contacts in the Orthodox Jewish community, the S.E.C. said (source). The SEC is charging that they rased at least $255M by targeting members of the Orthodox Jewish Community. The Full Bloomberg article can be read here. Or at the WSJ online.