A New Jersey man previously convicted of multi-million dollar Ponzi schemes, and was pardoned by former President Donald Trump, has been indicted again on similar charges.
According to the Department of Justice, Eliyahu Weinstein, has a history of committing investment fraud schemes. The first scheme occurred from around June 2004 to August 2011, and the second while he was on pretrial release from around February 2012 to May 2013. These frauds resulted in approximately $230 million in losses for investors.
He was sentenced to 24 years in prison and ordered to pay over $230 million in restitution.
On January 19, 2021, after serving around 8 years of his sentence, President Trump commuted Weinstein’s prison sentence, leaving the other components of his sentence intact. He began serving a three-year term of supervised release on January 20, 2021.
Soon after his release from prison, Weinstein, along with co-conspirators Aryeh “Ari” Bromberg, Joel Wittels, Shlomo Erez, and Alaa Hattab, orchestrated another significant investment fraud scheme. They defrauded at least 150 individual investors of more than $35 million by concealing Weinstein’s identity, making false claims about investments in COVID-19 masks, scarce baby formula, and first-aid kits for Ukraine, and operating a Ponzi-like scheme.
Additionally, Weinstein and the other defendants allegedly conspired to obstruct justice by hiding Weinstein’s assets meant for restitution to his previous victims and concealing his prohibited business activities during his supervised release.
To carry out the fraud, Weinstein used an alias, “Mike Konig,” and acted as a silent partner in the fraudulent entity, Optimus Investments Inc. Co-conspirators Bromberg and Wittels posed as the nominal owners of Optimus, while Weinstein directed business transactions.
Under the guise of “Mike Konig,” he solicited and obtained tens of millions of dollars from investors, promising lucrative deals and substantial returns. He used an internet-based messaging application to communicate with investors, concealing his true identity. The fraudulent scheme involved Tryon Management Group LLC, which raised money from investors to finance supposed deals for Optimus.
The defendants allegedly provided false information about the deals and Optimus’s involvement, while Weinstein continued to deceive investors by keeping his identity hidden and posing as a Logistics Coordinator and Purchase Order procurement officer.
In summary, Weinstein, along with his co-conspirators, engaged in multiple investment fraud schemes, causing significant financial losses to investors. Despite a previous conviction and prison sentence, he continued his fraudulent activities even after his sentence was commuted.
You can read the criminal complaint here.
