Convicted Fraudster Whose Sentence Was Commuted by Trump Faces New Charges
A fraudster who had his sentence commuted by former President Donald Trump is now facing new charges of fraud. Eliyahu Eli Weinstein, who was previously convicted of defrauding investors out of $230 million, has been accused of defrauding dozens of investors out of $35 million. The charges were announced by federal prosecutors in New Jersey.
Weinstein, also known as Mike Konig, is among five men charged with wire fraud conspiracy and conspiracy to obstruct justice. If convicted, each of them could face up to 25 years in prison. According to the U.S. Attorney for New Jersey, Philip Sellinger, Weinstein used a fake name and promised investors access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine.
Sellinger described these crimes as brazen and sophisticated, involving multiple conspirators and drawing from Weinstein’s previous playbook of fraud. In addition to Weinstein, Aryeh Ari Bromberg, Shlomo Erez, Joel Wittels, and Alaa Hattab were also involved in the alleged scheme. While Weinstein, Bromberg, and Erez have made their initial court appearances, Wittels and Hattab remain at large.
This is not the first time Weinstein has faced legal trouble. He was previously convicted twice in New Jersey federal court for defrauding investors. The first conviction related to a real estate Ponzi scheme, while the second stemmed from additional fraud he committed while on pretrial release.
For these crimes, which resulted in approximately $230 million in losses for investors, Weinstein was sentenced to 24 years in prison. However, on the day before leaving office, President Trump commuted his term to time served, allowing Weinstein to be released after less than eight years.
Shortly after his release, Weinstein allegedly began orchestrating a new scheme through a company called Optimus Investments Inc. Along with Bromberg and Wittels, he used a fake name to run the company, keeping his true identity hidden from investors. The trio received most of the investor money through another company called Tryon Management Group LLC, which was controlled by two other conspirators.
However, in February 2022, Tryon was unable to pay its investors, leading Weinstein, Bromberg, Wittels, and the Tryon owners to pool money from existing investors in a Ponzi-like fashion. They falsely told investors that these payments came from legitimate investment returns.
In August 2022, Weinstein revealed his true identity to the Tryon owners in a secretly recorded meeting and admitted to misappropriating investor money. He also confessed to making false statements about the supposed deals offered by Optimus, saying he had finagled and Ponzied and lied to cover their tracks.
Weinstein now faces the consequences of his actions once again as he stands accused of defrauding investors in yet another scheme. The legal proceedings will shed light on the extent of his involvement and determine the appropriate punishment for his alleged crimes. In the meantime, investors who fell victim to Weinstein’s fraudulent activities continue to seek justice and accountability.
