Federal prosecutors in New Jersey have announced new fraud charges against Eliyahu “Eli” Weinstein, a convicted Ponzi scheme artist whose prison sentence was commuted by former President Donald Trump.
Weinstein, who also used the alias Mike Konig, has been accused of defrauding investors out of $35 million in a sophisticated scheme he executed with the help of four other men, according to an arrest complaint filed in Trenton.
“He did so by using a fake name and falsely promising access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine,” said U.S. Attorney Philip R. Sellinger in a statement. “These were brazen and sophisticated crimes that involved multiple conspirators and drew right from Weinstein’s playbook of fraud.”
Weinstein had previously been convicted twice for defrauding investors of around $230 million in similar schemes.
For those, he was sentenced to 24 years in prison. But on January 19, 2021, just before leaving office, President Trump commuted Weinstein’s sentence to time served, releasing him after less than eight years.
Upon his release, Weinstein soon set up his new scheme through a company called Optimus Investments Inc., and concealed his true identity to attract investors.
The majority of the investor funds were funneled through another company, Tryon Management Group LLC, owned and controlled by two other conspirators.
Tryon promised high returns to investors, mostly friends and family, while misappropriating the money for personal gain.
In later meetings with the second company, Weinstein revealed his true identity and was recorded saying, “I finagled and Ponzied and lied to people to cover us.”
Now, Weinstein and the four other men involved each face up to 25 years in prison for charges of wire fraud conspiracy and conspiracy to obstruct justice.
With News Wire Services
