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CHARLES STILE

A pardon for Lakewood's Eliyahu Weinstein? Alan Dershowitz is talking to Trump | Stile

Charles Stile
NorthJersey.com

Among the names jumping out of the speculation mill for a possible last-minute pardon from President Donald Trump is one of the most notorious Ponzi-scheme swindlers in New Jersey history.

The New York Times reported last month that Alan Dershowitz, the celebrity law professor and Trump ally, is exploring applying for a pardon on behalf of Eliyahu Weinstein, a Lakewood man who was sentenced to 22 years in prison in 2014 for running a real-estate scam that cost investors more than $200 million in losses.

Weinstein's sentence was later extended for two more years for orchestrating a fraud amid Facebook's initial public offering in 2012.

I reached out to Dershowitz about the story and asked him to explain how he came to know of Weinstein's case, why he believes Weinstein was worthy of clemency, and if he actually approached Trump.

FILE - In this Dec. 2, 2019, file photo, attorney Alan Dershowitz talks to the press outside federal court, in New York. Retired law professor Alan Dershowitz says he hasn't changed at all and has a long history of representing people whose views he doesn't necessarily agree with. Dershowitz is part of President Donald Trump's defense team at the Senate impeachment trial.

In an email to the USA TODAY Network, Dershowitz, the retired Harvard law professor, replied, "I have not spoken to the president about a pardon or commutation ... ."

The scale of Weinstein's crimes was breathtaking. Authorities alleged that Weinstein ran a real-estate investment scam that began in June 2004 and ran through August 2011, in which he used false and misleading statements to induce victims to invest.

Weinstein initially targeted victims in the Orthodox Jewish community to which he belonged, exploiting his standing in and knowledge of the customs and practices of the community to further the scheme. He abused the community’s practice of engaging in transactions based on trust — without paperwork — to obtain money from victims and did not keep substantial records, authorities said.

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Throughout the scheme, Weinstein lied to investors, telling them their money was used to purchase property and that the profits were being rolled into new investments, authorities said.

Weinstein used a portion of the proceeds to fund charitable and religious contributions — an effort to boost his reputation within the Orthodox Jewish community. But, prosecutors said, he used the proceeds of his fraud to fund a lavish lifestyle, which included gambling in Las Vegas and elsewhere, leasing luxury cars and buying jewelry worth millions.

WASHINGTON, DC - DECEMBER 11: Professor Alan Dershowitz listens to U.S. President Donald Trump speak during a Hanukkah Reception in the East Room of the White House on December 11, 2019 in Washington, DC. (Photo by Mark Wilson/Getty Images) ORG XMIT: 775450579 ORIG FILE ID: 1193389321

Among the team of federal prosecutors who brought the case against Weinstein was Gurbir Grewal, the current New Jersey Attorney General. I reached out to Grewal for his reaction to the possibility that presidential clemency is being pursued for Weinstein; he did did not immediately reply.

Paul Fishman, the United States Attorney for New Jersey at the time, declined to comment.

The Times reported that Dershowitz was also considering seeking a pardon on behalf of Greg E. Lindberg, a North Carolina businessman who was sentenced in August to more than seven years in prison for his role in a bribery scheme that shook the state’s Republican Party

Sherrill and Pelosi: The sequel

Newly-minted Rep. Mikie Sherrill arrived in Washington in 2018 promising not to support Rep. Nancy Pelosi's bid to reclaim the Speaker of the House's seat.

The Montclair Democrat kept her promise and cast her vote for Illinois Rep. Cheri Bustos when the House formally reorganized in January 2019.

She was one of 15 who didn't vote for Pelosi. Not that it mattered much in the end — she was reelected with 220 votes.

But now, as 2021 dawns, the political terrain for Pelosi appears more difficult when the new Congress begins.

The House Democrats' healthy advantage from the 2018 "blue wave" midterms — when the Democrats' net gain of 41 seats gave the party a comfortable 235 votes — has shrunk to a likely 222 votes after the Nov. 3 elections (depending on the outcome of three undecided races.) 

Rosemary Becchi, at left, and Mikie Sherrill

In short, Pelosi can't risk 15 defections this time around. Sherrill, who represents the Morris County-centric 11th Congressional District, is refusing to show her hand. Jackie Burns, her spokeswoman, says Sherrill "has not yet decided."

As a rookie candidate in 2018, Sherrill sought to reassure the moderate Republican women that she was not going to be a rubber stamp for Pelosi's liberal agenda. She was, after all, seeking to succeed veteran Rep. Rodney Frelinghuysen, a classic middle-of-the-road New Jersey moderate who represented the district for more than two decades.

Sherrill won her seat by 15 points over Republican State lawmaker Jay Webber. She proved to be a formidable fundraiser and one of the crucial voices that pushed a reluctant Pelosi to launch impeachment proceedings against Trump. 

It's easy to see Sherrill voting for Pelosi in January. She's now an established incumbent who defeated Republican challenger Rosemary Becchi by more than 30,000 votes (although her margin of victory shrunk to 6 points.) And she could use her speaker vote as leverage to prompt commitments from Pelosi for committee assignments, priority bills, even financial support for the next election, if needed.

But there is a scenario where voting for Pelosi might pose something of a risk for a 2022 election. If the past is prologue, the Democrats will be on the defensive in President-elect Joe Biden's midterms, and will likely lose seats.

Congressional redistricting will be a factor. Democrats will be under pressure to make the neighboring 7th Congressional District more Democratic following incumbent Democrat Rep. Tom Malinowski's nail-biter of a victory over Republican state Sen. Thomas H. Kean Jr., who is eying a 2022 rematch.

One place map makers might look for Democratic help is in Sherrill's district, which could make it more competitive. Pelosi might become the albatross she would rather not have hanging around her reelection plans.

Charlie Stile is a veteran New Jersey columnist. For unlimited access to his unique insights into the state's political power structure and his powerful watchdog work, please subscribe or activate your digital account today.

Email: stile@northjersey.com 

Twitter: @politicalstile