Ex-boss of Chicago equity firm is sentenced in NYC

AP News
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Posted: Apr 11, 2011 8:07 PM
Ex-boss of Chicago equity firm is sentenced in NYC

The former president of a Chicago-based private equity firm has been sentenced in New York City to more than 13 years in prison after admitting he misspent millions of dollars in investor money.

Steven Byers was head of WexTrust Capital. He pleaded guilty last year to conspiracy and securities fraud. He was sentenced Monday in federal court in Manhattan to 13 years and four months in prison.

Prosecutors say Byers and others took $9.2 million from investors to buy seven commercial properties but never bought them.

The 48-year-old Oakbrook, Ill., resident also was ordered to pay $7.7 million in restitution and to forfeit $9.2 million in proceeds from the crimes.

Prosecutors say the crimes were carried out between 2003 and 2008.