A New Jersey man who was twice convicted of defrauding investors out of $230m and whose lengthy prison sentence was commuted by Donald Trump when he was US president is once again facing fraud charges, federal prosecutors in New Jersey announced on Wednesday.
Eliyahu “Eli” Weinstein, 48, of Lakewood, who is also known as Mike Konig, is among five men accused of defrauding dozens of investors out of $35m, according to an arrest complaint unsealed in federal court in Trenton. The five are charged with wire fraud conspiracy and conspiracy to obstruct justice, and each could face up to 25 years in prison.
Philip Sellinger, the US attorney for New Jersey, said Weinstein used a fake name and falsely promised access to deals involving scarce medical supplies, baby formula and first-aid kits supposedly destined for wartime Ukraine.
“These were brazen and sophisticated crimes that involved multiple conspirators and drew right from Weinstein’s playbook of fraud,” Sellinger said.
Weinstein, Aryeh “Ari” Bromberg, 49, of Lakewood, and Shlomo Erez, 55, a citizen and resident of Israel, were due to make their initial court appearances Wednesday. Two others – Joel Wittels, 57, of Lakewood, and Alaa Hattab, 34, of Ottawa, Canada – remain at large. It was not known if they have retained attorneys.
Weinstein was convicted twice in New Jersey federal court for defrauding investors. The first case involved a real estate Ponzi scheme, and the second stemmed from additional fraud he committed while on pre-trial release.
For those crimes, Weinstein was sentenced to 24 years in prison. On 19 January 2021, the day before leaving office, Trump commuted Weinstein’s term to time served after less than eight years into his sentence.
Shortly after he was released, Weinstein began orchestrating a new scheme to solicit money from investors through a company called Optimus Investments Inc, according to court documents. Using a fake name, he allegedly ran the firm with Bromberg and Wittels, with Weinstein’s true name and identity kept hidden because, as he acknowledged in a secretly recorded conversation, investors would not give them “a penny” if they learned of his involvement.