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New York - Complicated Heart Of Simple Real Estate Fraud Case. |
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New York - Miami real estate millionaire Harvey D. Wolinetz doesn’t do business like most tycoons. For him, it’s a matter of faith. Deals are made on a handshake.
And so it was when he met New Jersey developer Eliyahu Weinstein, a fellow Orthodox Jew. Weinstein told Wolinetz that he was a rabbi and his father had been a rabbi.
Weinstein and some of his New Jersey friends abused Wolinetz’s trust and took him for $78.5 million in loans and real estate investments in an eight-month period in 2005, according to a lawsuit filed in Miami federal court this month.
Wolinetz “deals with the world in a trusting way, and they took advantage of that trust,” said his attorney, Melanie Damian of Miami.
The nut of the fraud lawsuit rests in Wolinetz’s ties to Weinstein as members of the same faith.
“Members of the community believe that a man’s honor is his most valuable possession and a man’s word is as good as any written contract,” the lawsuit said. “As a result, business is often transacted without any documentation or through simple letter agreements prepared by the parties themselves.”
Another lawsuit has been filed by Wolinetz against Weinstein in New York State Supreme Court in Staten Island. A British investor also sued Weinstein in U.S. District Court in Philadelphia last March for $36.5 million on unrelated properties. Read extended article [dailybusinessreview]
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Read Comments (25) — Post Yours »
1
Feb 26, 2008 at 01:44 AM Anonymous Says:
To.....I know a very prominent rosh yeshiva who would not go to a dinner were he was a guest of honor....
The Yeshiva most probably owed him money! So the Rosh yeshiva was uncomfortable to meet him.
2
Jan 28, 2008 at 09:08 AM a Says:
i know eli on a very personal level he is a person who is willing to take advantage of anyone in order to make money i know a very prominent rosh yeshiva who would not go to a dinner were he was aguest of honer
3
Jan 28, 2008 at 01:33 AM lookatyourself Says:
2 years ago at his sons bris two very prominent rosh hayeshivos spoke and couldnt stop talking about what a tzaddik he is and the thousands hes helped in his name and anonymously and all his buisnes partners stood by and agreed. but now that the market had a down turn hes the personification of evil. get reall people hes the kindest gold hearted person you will ever have the opertunity to meet. every gvir out there should try to do half for the jewish world as as he has done at his young age
4
Jan 22, 2008 at 12:43 PM Anonymous Says:
Anyone who knows "Harvey's brother in-law who is his attorney" knows Arthur can barely handle a house closing.
Arthur has rode first his fathers, then his brothers, and now Harveys coat tails throughout his proffessional law career.
A stapler at the closing table has more legal document experience than Arthur.
Hopefully Harvey and his investors wont get hurt too badly, G-d willing.
5
Jan 18, 2008 at 06:23 AM metzyios Says:
I can bet with yuou the that the all the comments in favour of this crook, were done by himself (by his employees) or by people that he told them that they wont get their money back unless they write good on him. I know him for many years he is genius crook! for the last 15 years I was thinking what does he need so MUCH money??
Let me give you a tip: anyone who invested money by Eli Weinstein dont even bother chasing it just get on with life, save yourself heartache, thats it!!! I say this from experience.
6
Jan 17, 2008 at 11:49 PM Anonymous Says:
Weinstein attorney Howard Kleinhendler of Wachtel & Massyr in New York said his client’s investors are turning on him because they are losing money in a bear market.
“Unfortunately, when the market suffers a downturn and people are no longer making money with guys like Weinstein, suddenly everybody turns into a villain,” Kleinhendler said. “The point is we are going to vigorously defend ourselves, and we are confident at the end of the day that the allegations against us will not stand up in court.”
7
Jan 17, 2008 at 11:05 PM Anonymous Says:
Do me a favor.. Eli is a great guy has done a lot of good..Don't tell me that this guy who had $80 million in cash to hand out in the good old days doesn't understand what it means to make an investment and possibly a bad one too .if this guy is making investments with handshakes he knows what it meand to lose money.
If Eli had to juggle a little because times were tough then he did>. But wether its a $100 or its a $100 million a person can lose an investment especially if the economy goes sour.
8
Jan 17, 2008 at 08:22 PM JY Says:
If anyone knew the tremendous good Eli Weinstein has done for the entire nation of Jews you would think twice before thoughtlessly spewing their incindiery comments. This isn't frum Judaism it isn't Judaism at all. Know the facts if you feel it necessary to state your opinions in a public forum.
9
Jan 17, 2008 at 08:07 PM Jonathan Says:
Who in their right mind would conduct close to $80,000,000 in business on just a handshake? The is obviously a statement made by his lawyer to make Wolinetz the helpless victim. More money usually means more risk. Wolinetz knew this and is now trying to make Eli Weinstein into a financial predator. Eli Weinstein has made millions and millions for his investors over the years. This guy was not one of the lucky ones. And his tactics to bend the truth and play the victim are pathetic.
10
Jan 17, 2008 at 07:26 PM Anonymous Says:
Lending money on interest is only permissible if there can be risk involved and if so in this case if Eli lost the investor losses---
eli didnt lose the money, he misappropriated it. he went on lavish vacations, and the likes
11
Jan 17, 2008 at 07:12 PM Anonymous Says:
Lending money on interest is only permissible if there can be risk involved and if so in this case if Eli lost the investor losses
12
Jan 17, 2008 at 07:06 PM Anonymous Says:
1-lets get real the greed of 15 % is what got Harvey excited
2-Dose Harvey rely on hand shakes, I don’t think his brother in-law who is his attorney would allow this.
13
Jan 17, 2008 at 06:12 PM info Says:
too all you speculators, no one "knew there was risk involved"
thats the stupidest thing to say.
if they did, do you think they would part with millions of dollars?
greedy. yes the investors might have been greedy, but you get anyone to give you 30 or 80 Million dollars by telling them "this is very risky, - but it has potential" .
14
Jan 17, 2008 at 12:32 PM David Says:
To Anon 12:26,
This is Anon 11:18 speaking!
I'm trying to:
A)Respond to the first Anon's comment.
B)Set the record straight in the article.
And learn to spell "sentence" correctly!
15
Jan 17, 2008 at 12:26 PM Anonymous Says:
Anon 11:18
What are you adding or trying to say in your first sentance!!!
16
Jan 17, 2008 at 12:21 PM Anonymous Says:
I agree with the above comment !!! there were lots of rich people that did make money from eli and these guys knew that they r taking a big risk. now that real estate is declining everyone is running after him i'm not saying hes a tzadik but the guys that invested with him knew good and well what they were getting into.
17
Jan 17, 2008 at 11:54 AM Anonymous Says:
Don’t sell me on a hand shake or trust baloney - this was big business by hungry big boys and everyone knew the risks if their is no contract then all involved accepted what ever.
18
Jan 17, 2008 at 11:42 AM info Says:
this is only the tip of the iceberg.
there are many other investors that will undoubtedly start stepping up and holding eli responsible for his actions.
19
Jan 17, 2008 at 11:18 AM Anonymous Says:
Indeed, his father does sit and learn all day, literally. But I don't believe that he represented himself to be a rabbi.
20
Jan 17, 2008 at 10:58 AM Anonymous Says:
I am amazed, that when I need a $5000 investment I can't find anyone, but these people are taking people for 78 million. What am I doing wrong?
21
Jan 17, 2008 at 10:26 AM Anonymous Says:
I think that even if you had all the paperwork in the world you would still lose with person.
Sometimes you just have to stay away from people.
22
Jan 17, 2008 at 10:13 AM Anonymous Says:
NEVER do business with big money involved with just merely a handshake! No matter who it is, the temptation to deny the whole thing is just to great. It is no wonder that the Chachomim said that lending money without proper Eidim/Shtar is L'fnei Eiver Lo S'itan M'ichshal.
23
Jan 17, 2008 at 09:53 AM Anonymous Says:
welcome to the club thousand that lost money with him
24
Jan 17, 2008 at 09:46 AM Anonymous Says:
Once a thief always a thief! Hasn't changed much since his Gateshead days where he swindled some kollel guys. What a shame for his father, who sits an learns all day.
25
Jan 17, 2008 at 09:42 AM Anonymous Says:
The axiom is that if a stranger tells you he's a rabbi, keep your hand on your wallet.