NEWARK, NJ – Eliyahu “Eli” Weinstein, a previously convicted fraudster, was charged again along with four other men, for conspiring to defraud investors of over $35 million and obstructing justice. The announcement came from U.S. Attorney Philip R. Sellinger.
Former President Donald J. Trump pardoned Weinstein on similar convictions.
Weinstein, Aryeh “Ari” Bromberg, Joel Wittels, Shlomo Erez, and Alaa Hattab have all been charged with one count of wire fraud conspiracy and one count of conspiracy to obstruct justice. Three of the defendants were arrested, while Wittels and Hattab remain at large.
The allegations state that Weinstein, using the alias Mike Konig, was involved in a fraud scheme that falsely promised investors access to deals involving scarce medical supplies, baby formula, and first-aid kits, supposedly for war-ridden Ukraine. The funds given by investors, mostly friends, and family, were instead used to pay other investors in a Ponzi-like fashion, keeping the scheme afloat.
According to statements made in court and documents filed in the case, Weinstein had been convicted twice before for defrauding investors, totaling $230 million. Following his sentence commutation in January 2021, after serving less than eight years, he returned to orchestrating fraudulent schemes.
The defendants also conspired to obstruct justice by hiding Weinstein’s assets intended for paying over $200 million in restitution to his previous victims. Any person with further information about these crimes is encouraged to contact the Newark FBI.