$200 million Ponzi Scheme – Lakewood


Lakewood man convicted in $200M Ponzi scheme gets nowhere with appeals

Eliyahu Weinstein, already facing 25 years in prison in connection with a Ponzi scheme, was charged today in a new scam involving shares of Facebook before the social media company went public. (Star-Ledger file photo) (Frank Conlon/The Star-Ledger)
Kathleen O'Brien | NJ Advance Media for NJ.comBy Kathleen O’Brien | NJ Advance Media for NJ.com
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on August 14, 2016 at 9:32 AM, updated August 14, 2016 at 9:33 AM

The Lakewood man who ran a $200 million Ponzi investment scheme that bilked members of the town’s Orthodox community has struck out in his attempt to overturn his convictions.

Eliyahu Weinstein was sentenced to 22 years in prison in early 2014 after admitting his role in what authorities said was one of the largest cases of investment fraud they’d encountered.

Just months later, he pleaded guilty to charges he tricked investors into thinking he had an inside track on the Facebook initial public offering.

“Shamelessly, he even used the money he stole to pay the legal fees he accumulated from the previous scam,” said U.S. Attorney Paul Fishman at the time. The judge tacked another two years onto his sentence for that crime.

N.J. cop accused of drunken rampage headed to court

N.J. cop accused of drunken rampage headed to court

Weinstein appealed both cases, seeking to withdraw his first plea and toss out the second set of charges.

In that appeal, he claimed the judge was tainted for the second case because he oversaw the plea deal in the first case. Weinstein also claimed his lawyer had a conflict of interest because he had advised investors so was also at risk of prosecution, and that the Facebook case amounted to Double Jeopardy.

A three-judge panel of the U.S. Court of Appeals Third Circuit rebuffed those claims in a ruling issued Friday.

U.S District Judge Joel A. Pisano’s participation in the first go-around of plea negotiations was extremely limited, and any claims to the contrary were “unsubstantiated hearsay,” the panel wrote.

As to Weinstein’s attorney, the panel found that any interactions the lawyer had with investment customers was based on his belief the money would be properly invested, not pocketed by Weinstein. Therefore, the lawyer would not have faced prosecution and was able to represent him in the case, the panel found.

The panel also made quick work of rejecting Weinstein’s assertion that prosecutors had split the overall case into two cases just to tack on more prison time.


3 thoughts on “$200 million Ponzi Scheme – Lakewood

  1. It’s true. Another sucker IS born every single day. Do you know how many people are sitting in jail today because of Eli Weinstein?! He preys on these people. He actually recruits these lost souls and makes them think that they are doing the biggest chessed “helping” him from within the prison system and outside of it. Don’t be sucked into this shrewd mans web of deceit and manipulation. He’s a shark. Yes, he’s brilliant and carasmaric but he doesn’t care about anyone but himself. His wife is a nice person… not the sharpest tool in the shed though. He doesn’t give a crap about her or his kids. He’s one of the most dangerous criminals out there. Stay away from him. Keep your loved ones away from him. He’s nothing but trouble.

  2. Eli Weinstein should be in solitary for life. This narcissist is still carrying out scams from the slammer and has his new recruits doing all the dirty work for him. Another sucker is born every day. They’re all the same.

  3. Funny how they don’t mention that he was recently transferred to higher security prison in PA after being caught in his prison cell with a cell phone that was smuggled in by one of his lowlife cronies. This lowlife should get life for destroying innocent people’s lives and the lives of his wife and children. What a narcissistic asshole!!

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