President Trump’s Controversial Pardon Leads to Another Scam for Ponzi Schemer
A New Jersey Ponzi schemer, Eliyahu Weinstein, who was granted clemency by President Trump in 2021, is now headed back to prison for running yet another scam. The 51-year-old from Lakewood, NJ, was originally serving a 24-year sentence for fraud before his pardon.
Weinstein’s release from prison sparked controversy as former White House Chief of Staff Mark Meadows played a role in lobbying for his pardon. The move raised eyebrows as Weinstein wasted no time in resuming his fraudulent activities shortly after his release. Now, he faces a 37-year sentence and must pay approximately $44 million in restitution to his victims.
The latest scheme involved defrauding 150 individuals of $35 million through fraudulent schemes related to medical and security supplies for Ukraine. Prosecutors revealed that Weinstein’s scam began immediately after his release from prison, highlighting his audacity and disregard for the law.
Working with a co-defendant and five co-conspirators, Weinstein conducted a “brazen and sophisticated” scheme to deceive investors into purchasing COVID-19 supplies, including “scarce baby formula,” and first-aid kits for individuals in war-torn regions. The operation was run through Optimus Investments Inc., where Weinstein was a silent partner, and operated as a Ponzi-like fraud scheme.
This isn’t the first time Weinstein has been involved in fraudulent activities. In the past, he swindled wealthy investors from the Orthodox Jewish community in the region through real estate schemes, amounting to $230 million. Despite his pledge to turn over a new leaf after his release, former US Attorney for New Jersey Philip Sellinger remarked that Weinstein “picked up right where he left off.”
In a damning revelation, prosecutors obtained secret recordings of Weinstein admitting to deceiving investors and diverting funds for personal gain. The recordings captured him confessing to “finagling, Ponzied, and lying” to cover up shady deals, including diverting money from investors to invest in the Turkish stock market under the guise of an N95 mask scam.
Weinstein’s elaborate scheme included presenting fabricated documents showing baby formula shipments from Turkey to Newark, further highlighting his deceptive practices. His ability to secure a pardon in 2021 involved the hiring of lobbyist Nick Muzin, who contacted Meadows for assistance. Additionally, Weinstein sought advice from renowned lawyer Alan Dershowitz to navigate the legal process.
Despite serving nearly eight years of his original 24-year sentence, Weinstein’s return to prison underscores the consequences of his fraudulent actions and the repercussions of abusing the legal system for personal gain. The case serves as a cautionary tale of the dangers of white-collar crime and the importance of holding perpetrators accountable for their actions.
