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Arrest Made in Alleged Ponzi Scheme: Eliyahu Weinstein Accused

Arrest Made in Alleged Ponzi Scheme

The Department of Justice said on Wednesday that they had arrested Eliyahu “Eli” Weinstein, 48, of Lakewood, New Jersey, on allegations of running, quote, “a Ponzi scheme.” In court, he and his co-defendants are accused of swindling investors out of money that was supposed to be used to broker the sale of COVID-19 masks, baby formula, and Ukraine-bound first-aid kits (at least these guys read the news!).

Instead, they allegedly used the funds to pay phony returns to other investors and “invest in the Turkish stock market.” If Weinstein was running a Ponzi scheme, how did the authorities find out about it? One example is that he allegedly “Ponzied” the money that was being used to pay back investors and boasted about it to his associates while being secretly recorded.

(One of the people he is accused of conspiring with also wrote down the fact that their financial institution had marked their conduct as suspicious “because it looks like a Ponzi scheme.”) Furthermore, Weinstein is reported to have stated on tape that he hid assets from federal prosecutors. “I hid the money,” he allegedly told his accomplices, adding that they would “go to jail” if anyone found out.

The tweet below verifies the news:

In addition, the fact that Weinstein had recently been released from jail after serving eight years of a 24-year sentence for orchestrating Ponzi schemes may have tipped off the DOJ that he was someone to keep an eye on.

In particular, Weinstein was given a prison term for running a Ponzi scheme involving fake real estate deals, and then another term for running a second Ponzi scheme involving fake Facebook stock purchases while he was out on bail pending trial. In other words, it appears that there is substantial proof that Eli Weinstein frequently engaged in Ponzi schemes.

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Then why was he released from jail before completing even half of his sentence? According to the New York Times: In January 2021, President Donald Trump pardoned Harvey Weinstein on the advice of “the lawyer Alan Dershowitz,” who has made headlines in recent years for his representation of Trump and his close friendship with the late Jeffrey Epstein.

(Dershowitz has repeatedly denied any improper or unlawful sexual behavior while in Epstein’s company.) After receiving amnesty, Weinstein is alleged to have temporarily run his new scam under the name Mike Konig, only to have his cover blown when he revealed to colleagues, at a meeting that was being secretly recorded, that he was in fact Eli Weinstein. The rumor has it that he said, “I am Eli Weinstein.”

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