Eliyahu Weinstein has been charged with fraud again, just two years after he had the remainder of a 24-year prison sentence commuted by Trump.
The case comes from the SEC Securities and Exchange Commission, which charged six people for a multi-million dollar scheme similar to a Ponzi scheme. The department said in a blistering press release that it had been "orchestrated by criminal recidivist Eliyahu Weinstein."
According to the charges, the individuals allegedly raised money to fund deals with healthcare products with a promise for investment returns. Approximately $38 million was raised from at least 150 investors, the SEC says.
“Over and over, the defendants took money from unsuspecting investors for fake deals and shuffled funds around to pay out earlier investors to give the false impression that they were receiving real profits from those deals, sometimes even concealing Weinstein’s criminal history and involvement in the deals,” said Antonia M. Apps, Director of the SEC’s New York Regional Office. “The SEC remains committed to holding accountable those who prey upon innocent investors and conceal the truth about their criminal pasts and schemes.”
It was only two years ago that Eliyahu Weinstein was told "two-thirds of his 24-year sentence for investment fraud was going to be commuted by President Donald J. Trump," The New York Times reported in 2021.
Weinstein hired a "well-connected Washington lobbyist" to handle the clemency appeal to the White House for his conviction for running a Ponzi scheme that The Times said, "stole millions of dollars from clients represented by Ari Mweisrot." The funds were never returned.
The report detailed how a pair of influential Jewish organizations that focus on criminal justice issues were behind the lobbying efforts. One of those groups, the Tzedek Association along with Alan Dershowitz and former U.S. attorney for Utah Brett Tolman were credited with the decision.
