Lakewood, NJ – FBI Arrest Orthodox Jewish Real Estate Developer In Alleged Ponzi Scheme

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    Eliyahu Weinstein is led away by investigators Aug. 12, 2010. (Asbury Park Press STAFF PHOTO: THOMAS P. COSTELLO)Lakewood, NJ – Real estate developer Eliyahu Weinstein was arrested early this morning by federal agents on charges connected to a giant Ponzi scheme, just days after he and some business associates were hit with a $34 million civil judgment.

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    Weinstein, 34, was taken from his home on Seton Circle and is en route to Newark for a first appearance in U.S. District Court, according to sources.

    About a dozen FBI and IRS agents also descended on a commercial building on Cross Street believed to be Weinstein’s place of business.

    Weinstein has been charged in lawsuits with bilking investors on two continents out of nearly $300 million.

    Just last week a U.S. District Court judge in Pennsylvania issued a $34 million judgment against Weinstein and some associates.

    The schemes, the investors claim, involved a series of land deals, a charity for children and religious organizations.

    One investor likened Weinstein to the next Bernie Madoff. Others say in court documents that Weinstein left them and their families broke.

    Weinstein has claimed in court papers that he lost the investors’ money when the real estate market tumbled.
    Federal agents outside the office of real estate developer Eliyahu Weinstein after his arrest early this morning on charges connected to a giant Ponzi scheme Thursday, August 12, 2010.Photo: Star Ledger
    Not so, say investors such as London, England-based Moshe Meisels. Meisels claims he lost tens of millions of dollars investing with Weinstein.

    In a March 15, 2008, telephone call to attorney Howard Kleinhendler — which Meisels recorded — the rabbi claimed he lost “everything” to Weinstein.

    Investors said they gave Weinstein their millions over the past five years after he promised to return huge profits to them through real estate sales. But the returns, investors say, never came. Some investors sued, saying that Weinstein never bought the properties in the first place.

    One of the plaintiff’s attorneys, Hackensack lawyer Ari Weisbrot, has claimed that Weinstein used a network of 69 Jewish charities and several corporations to “filter” at least $140 million, much of which found its way back to Weinstein, entities he controls or his creditors, according to court papers.

    Read more at Asbury Park Press


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    94 Comments
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    Anonymous
    Anonymous
    13 years ago

    I’m waiting for the comments to come how much charity the gave

    Anonymous
    Anonymous
    13 years ago

    I thought Weinstein was cooperating (dwek) style…

    Samuel_Light
    Samuel_Light
    13 years ago

    How many institutions are going down with this one? what a chillel hashem this one might turn out to be.

    13 years ago

    A shanda and a booosha.

    Anonymous
    Anonymous
    13 years ago

    Hashem yishmor nebach on his family

    bmg coffee room
    bmg coffee room
    13 years ago

    i wonder if he will be zoiche to get a music album done in his name like they did for rubashkin

    Nirah-Lee
    Nirah-Lee
    13 years ago

    Oy vey!! Hashem Yirachem!! And we want to understand why sooo many UNNATURAL tragedies are befalling our communities. Is it possible because instead of being an Ohr LaGoyim – we are behaving sooo UNNATURALLY? :*(

    kollelfaker
    kollelfaker
    13 years ago

    #5 his family…. his wife and family lived high on the hog because of his actions please dont say his wife didnt know was she blind or was she happy being a princess

    Anonymous
    Anonymous
    13 years ago

    What happened to dan lkaf zchus I’m writing anonymously because I don’t want be judged by all of you let’s all take a deep breath and see what unfolds before we jump to conclusions. Please post what you would want people to post about you if you were in a bad matzev

    Anonymous
    Anonymous
    13 years ago

    Its so sad that every day another one fune unzere gets caught stealing millions. Mamesh a shanda!

    Michel
    Michel
    13 years ago

    Only 37 years old? must be a genius.

    Bukharian
    Bukharian
    13 years ago

    “$140 million to Kars 4 Kids,” how many kids need this much cars? now its a domino affect will affect non-profit organization that were involved.

    curious
    curious
    13 years ago

    I would love a full list of the charities complicit in this so that I can know who not to continue supporting.

    Anonymous
    Anonymous
    13 years ago

    B”H they got him, wat a dirty monster he was. he showed you legit figures but ran off with it ALL.

    13 years ago

    Where is the Pidyon Shuvuyim fund?

    Anonymous
    Anonymous
    13 years ago

    Even the Rubashkin supporters will be unable to find anything to cheer about in the arrest of this guy for swindling tens of millions of dollars from innocent yidden with tragic consequences (SMR is only alleged to have stolen from goiyeshe banks). This guy Weinstein, Madoff, and the Dwek Rabbonim and politicians in NJ, the jewish lawyer in Florida and so many others reported here on VIN assure that all the negative steretypes of yidden as being crooks and money manipulators is perpetuated.

    Anonymous
    Anonymous
    13 years ago

    This is just lashon harah. Its a mitzvah of pidyon shvuyim. We are planning an asifa tonight in lakewood to raise money for his defense fund. Rabbi Shloima Chaim Kanarig is heading the fund.

    13 years ago

    To number 12: Your type ALWAYS defends the lowest of crimminals and ALWAYS attacks honest people that want to warn others to beware of them.

    people chill
    people chill
    13 years ago

    I know Eli Weinstein. Yes he may have invested millions of other peoples money and lost it but no that is not a crime. its the risk that people take when investing . the people who lost that money are mad, so they made up this ponzi scheme. and the millions given to charity were just that, millions given to charity. he never got that money back .

    Anonymous
    Anonymous
    13 years ago

    I have no feelings for people who leach off the jewish community for years acting like good jews themself while in reality grabbing every penny off every person they can get there hands on they are an ambarresment to all jews, i dont know about elis situation personally im just saying…..

    Anonymous
    Anonymous
    13 years ago

    Pidyan shvuyim is still a mitzvah.

    We still have the same torah even in 2010

    Mrs_Boro_Parker
    Mrs_Boro_Parker
    13 years ago

    Moshe Meisels went through so much tzorus already and lost his house and livelihood to this ponzi guy.

    LiberalismIsADisease
    LiberalismIsADisease
    13 years ago

    I cant believe I am actually reading what I am reading here?!??!? Have you people no shame in how you are vilifying him and claiming his guilt here. Whether or not he did it, you people have NO HALOCHIK RIGHT to do this to him in public ESPECIALLY in Ellul.

    May HKBH have rachmonis on ALL of you!!

    SHAME ON YOU!!!!!!

    Anonymous
    Anonymous
    13 years ago

    Before u throw the book at him! Has anyone Been dan lekaf zechus? Maybe he has a borderline personality disorder? Give him help not more tzaros.

    Joe-Shmoe
    Joe-Shmoe
    13 years ago

    And maybe he’s right!!!!!!!!!!!!!!!!!!!!!!! the only argument we hear is what the accusers think. perhaps there is another side to this story in which he did invest in properties, if he did it’s definitely down the drain, no matter if this meisels put in alllll his money or only a fraction. that’s meisels problem. Hevey dan es kol adam l’kaf zchus means even after being found guilty by secular law, and DEFINITELY when only hearing one side of the story!

    13 years ago

    to #6 :
    Maybe he cooperated, maybe not. Either way both he and Dwek will still have to spend a few decades in Federal prision. Then somehow pay back their debts and a heavy fine. A life and family ruined over greed!

    clear-thinker
    clear-thinker
    13 years ago

    #14 . Did you read the article? 34 not 37. Yet it is wonderful that the frum community can shep nachas at this young frum man. Who says Lakewood yeshivas are not up to giving a first rate secular education. Lets all get ready to cry anti-semitism.

    the torah
    the torah
    13 years ago

    Call him to den torah! y arrest him?

    13 years ago

    It is about time to stop blaming others. Blame yourself for trying to make a fast buck. When you make the big money you don’t share it with me, so when you lose it wipe your own tears. This is business. You invest, you most have the heart to lose. If not, keep your money in your pillow and play it safe. We all lost money. You most have money to lose it. Play smart, never invest unless you have money saved up for rainy day. We do not learn our lessons. things will get better and we will do it again.Better luck next time.

    Anonymous
    Anonymous
    13 years ago

    The money given to the charities found its way back to him? How? If legally, as in if he employed friends and relatives, then what’s wrong with that? And if these low qualified employees were earning $125,000 annualy well, so does the average federal worker that are mostly low qualified and did not really earn their jobs either. Who do you want him to hire? Your relatives instead? If the investors say that real estate didn’t collapse then they are blatantly lying. If they claimed the investments were guaranteed – how FDIC? What nonsense. If they claim it was a Ponzi scheme – what organization isn’t ? Based on credit card statistics – every American is running his own ponzi scheme! The government for sure is a Ponzi. Social Security is a Ponzi. If you had a hundred million invested with a man that lost most of the investment, don’t you want him to get more investors in to leverage your losses? Any get rich quick scheme in real estate lost 90% of its capital because they bought ten times their capital so a small depreciation in the building wipes out all the investment. Instead of wasting millions investigating and prosecuting the FBI should set up an organization that will act as a supervisory board who for a small fee will guarantee the investors that this fund did everything legitimately. They will still lose their money but they won’t have the satisfaction of lynching someone.

    Tachlis
    Tachlis
    13 years ago

    Good for him! He found away to pay for his kids tuition and kosher food. Instead of letting the yeshivos and Bais yaakov steal his money, he beat them to the punch. everyone talks about chillul Hashem, but where the screaming when the Schools dont pay the teachers on time? where is the screaming when the yeshivas say ” you dont have money so were gonna treat your kid different”! were is all the screaming when people have to choose between a luluv and food for yom tov?! we are so eager to scream bloody murder when someone gets a few illegal dollars, but what have we done to prevent such things??

    Tachlis
    Tachlis
    13 years ago

    Good for him! Instead of him waiting for the Yeshivos and Bais Yaakovs to steal his money he beat them to the punch! People like to scream Chillul Hashem, But where is all the screaming when the schools don’t pay their teachers on time? Where is the screaming when Yeshivos say “you don’t have money so we are going to treat your kid differently?” Where is the screaming when people have to chose between a Luluv and food for yom tov? Judaism became a booming business. He did what he had to do, What have WE done to change the situation?

    DavidMoshe
    Active Member
    DavidMoshe
    13 years ago

    So, will we all be treated to the spectacle of a bunch of protestors demanding that he not go to prison because he’s such a frum guy who has done so much? Will he get the Rubashkin treatment? The whole thing is a disgrace– yet another guy in a kippah being led off in handcuffs. It’s time that our rabbonim focused more on ethical behavior and less on rituals, because this past year has not been a positive one for Klal Yisroel, and we have nobody to blame but ourselves.

    Helen Thomas
    Helen Thomas
    13 years ago

    You people are all sick. Why the public simcha at the downfall of a jewish family. There is always another side of the story. The FBI is working full time trying to find anything on anyone. First of all the kars 4 kids is not like the article stated. Eli gave those millions to charity. many charities not just kars 4 kids. one time someone needed a loan and oorah helped them out m that person happened to be investing with eli. no scandel there. And yes Eli did invest other peoples money and lose it, but u have to be an idiot to trust 30 million dollars on one deal just like that to anyone. I don’t believe any crime was committed here and this is just part of the witch hunt. but the glee and satisfaction of the posters here before all the facts are out makes my stomach sick .

    Anonymous
    Anonymous
    13 years ago

    everyone must take a step back & think what would they write in the comments if this was a friend/realitive of the person. You probably would want to wait till you know 100% that he did this all . Even the goyim understand INNOCENT till proven GUILTY !!!

    Barry521
    Barry521
    13 years ago

    What a sad state of affairs. If all these Chochems would only conduct business in a morally, decent way obeying the law, they in all probability would make the same amount of moeny they try doing business as crooks.
    A day doesn’t pass that some crooked scheme is attributed to another Jew. Is this the Torah that our Yeshivas are teaching. Where are the moral compasses of these so called Rabbaim? The leaders of our communities?

    Anonymous
    Anonymous
    13 years ago

    Next time pay the tax on your income, so u won’t have to invest it in unknown places & u don’t have to lose it. sorry next go legally! & now don’t blame the people u invest it by. hamkom ymallaya csroncha

    straightmind
    straightmind
    13 years ago

    All I want to say is,please don’t rush to judge,I’m not saying he’s not guilty,we’ve seen more times then not of how our Malchis she’ll chesed like to blowup charges on people,(rubashkin yochiach)again I’m not saying he’s innocent just let the facts come out….his wife and kids and family should be respected they for sure didn’t do anything wrong,they are the biggest rachmonos of all…let’s hope for the best.

    shtusim
    shtusim
    13 years ago

    What i don’t understand is the lack of seichel on the part of the investors.
    Who give millions of dollars to a shnook from kollel? If the “deal” was so good, why did he have to go to England to get money? BUT, THEY WERE GREEDY. As it says in the gemara ” YESH LO MONA, ROTZEH MASSAIM”
    if they have more money to throw out, i am sure i can find very good uses for it.
    IF THEY WOULD HAVE GIVEN THE MONEY TO TZEDAKAH, THEY WOULDN’T BE IN THIS POSITION!!

    j unger
    j unger
    13 years ago

    It was proven that he never bought the properties he claimed he did
    Sometimes he gave a deposit and let the sellers even keep the 10 percent deposit as long as he kept the rest 90 percent
    This was proven in court so many times

    kollelfaker
    kollelfaker
    13 years ago

    wrong there areany wealthy people in lakewood today and if he and hisifew are living the high life so are his kids. the only nebach might be for the people that trusted him with there money because they and there families lost it not him

    and to the one thast says its the investers fault sorry but it getting old hast frummer yiddin stealing from others and the right wing jmerks defending them

    dmb120
    dmb120
    13 years ago

    all you idiots have your priorities wrong all he may have done was possibly taking money from people. i dont see anybody talking against all the molestors and all the people who are ruining kids and adults lives SPIRITUALLY im just asking that first judge him favorably(youl never know the real story no matter how many articles you read) and secondly please get your priorities straight another thing unless you were involved(obviously not you otherwise you wont be posting your stupid comments)it is none of your buisness

    13 years ago

    Until the cost of being a frum Yid comes down, these types of things will go on.

    Mendel
    Mendel
    13 years ago

    I know this man well and like everyone else knew not to invest with him. We all waited for this day to happen. It is so sad to read how much money was lost by him. I just don’t understand the constant Lakewood bashing? He happenned to live there. He was NOT a KOLLEL YUNGERMAN ever!!! And he didnt grow up in Lakewood. He moved here long after he began conducting his buosness. When the APP will call him a Rabbi I won’t be shocked. Amongst us let us remember not to shame a makom kadosh in Elul based on a person who has nothing and had nothing to do with Lakewood Kollel.

    May we all hear the ultimate Simcha bkarov

    arthurbader
    arthurbader
    13 years ago

    By the way, I didn;t see anywhere in the APP that “one lawyer claimed in federal court that Weinstein funneled about $140 million to Kars 4 Kids — a national organization that accepts used cars as donations — and other Jewish charities and unrelated corporations.”

    What it does say is taht he funneled money to charities, and he questioned a check from Kars 4 Kids. Not only did Kars 4 Kids lawyer respond in th article, that whole thing was from an old Star-Ledger story that the newspaper retracted!

    13 years ago

    Which shul does he daven in?

    CF700
    CF700
    13 years ago

    I don’t get their point at all. Investing by definition is a risk, and the ones taking the rest are the ones that are guilty. Period. You want your money to be safe keep it in your bank account or in life insurance.

    Of course, if money is entrusted to you, you gotta invest it legitimately. People losing their invested money doesn’t automatically equal ponzi scheme. Don’t rush to judge, and yes, if you have a Jewish heart, you should give him the benefit of the doubt first.

    BPHocker
    BPHocker
    13 years ago

    OK, so he stole some money. Big deal. Its not like he wore a blue shirt on shabbos or something really sick like that.

    bigwheeel
    bigwheeel
    13 years ago

    Poster # 36; According to your venomous posts, you are pretty much set against religious Jews. (You might not be Jewish yourself.) But your English Spelling and Grammar leave a lot to be desired. (That’s understating the case.) If you were a “Chassidic Zhlob”, (one of the people you love to hate) I could understand your excuse for not speaking / writing proper English. (Not always the rule. I’m a “Chassidic Zhlob”.) Your hate goes to such an extent that you’re predictable.

    p.s.: The past demonstration of your proficiency in the vernacular leaves me doubting you got the gist of my musings.

    Not So Fast, Boys !!
    Not So Fast, Boys !!
    13 years ago

    I know Eli, as many of do, as well. This was NOT a ponzi scheme, as this article states. Eli is a very smart guy & invested in Real – Estate. He then made a lot of money, very fast, very easy. He then started taking OPM for investments. At first he was making $$ for his investors, but then, when the market collapsed, so did his returns. He tried to do more risky things and then, well, u know the rest. Some of his investors sued and now, we have an indictment. But it was never meant to be a ponzi.