LAKEWOOD, NJ – Eliyahu “Eli” Weinstein, previously convicted of defrauding investors out of $230 million, was indicted today alongside Aryeh “Ari” Bromberg and others in a new fraud scheme, according to U.S. Attorney Philip R. Sellinger. Despite a Presidential commutation of his 24-year sentence in 2021, Weinstein is accused of orchestrating another elaborate fraud, this time involving fake investments in scarce medical supplies, baby formula, and first-aid kits purportedly for wartime Ukraine.
His sentence was commuted by former President Donald Trump. Today, he’s in trouble once again.
“The adage ‘history repeats itself’ proves true in the case we’ve built against Weinstein and his co-conspirators,” FBI – Newark Special Agent in Charge James E. Dennehy said. “We allege he persuaded investors to put money into several ventures, based on taking advantage of the COVID pandemic, the baby formula shortage, and even the war in Ukraine. Our investigation shows those ventures weren’t real, and to use the exact words the subjects used – it was a Ponzi scheme. Weinstein squandered his pardon from the highest office in this country for similar criminal behavior. He now faces justice, a second time.”
Weinstein, 48, and Bromberg, 49, face multiple charges, including conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud, and conspiracy to obstruct justice. Their alleged co-conspirators, Christopher Anderson, Richard Curry, and Alaa Mohamed Hattab, have pleaded guilty to conspiracy to commit securities fraud and await sentencing.
Operating under the alias “Mike Konig,” Weinstein allegedly hid his identity to attract investors to his new venture, Optimus Investments Inc., promising high returns on investments in products in high demand due to the COVID pandemic and the war in Ukraine. The scheme quickly unraveled, revealing a Ponzi-like operation where new investor funds were used to pay previous investors.
“A federal grand jury in New Jersey has charged Weinstein and Bromberg with defrauding victim investors out of tens of millions of dollars,” U.S. Attorney Philip R. Sellinger said. “As alleged, soon after Weinstein got out of jail after receiving a Presidential commutation, he picked his Ponzi schemer’s playbook back up and allegedly started ripping off victims again. Weinstein allegedly used a fake name and worked with Bromberg and others to falsely promise access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine. Weinstein didn’t try to make his prior victims whole – he made more victims, as alleged in the indictment. This office will aggressively investigate and prosecute fraudsters who allegedly prey on innocent investors.”
In addition to defrauding new investors, Weinstein and Bromberg are accused of conspiring to obstruct justice by hiding Weinstein’s assets, which were supposed to pay over $200 million in restitution to his previous victims. The charges carry significant prison time and fines, highlighting the ongoing efforts to prosecute and penalize fraudulent financial activities.