Alaa Mohamed Hattab, Securities Fraud Conspiracy, New Jersey 2024

TRENTON, N.J. – Alaa Mohamed Hattab, 35, of Ottawa, Ontario, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities fraud on February 14, 2024.

Hattab admitted conspiring with others, including Eliyahu “Eli” Weinstein, whose 24-year federal prison sentence was commuted after being twice convicted of defrauding investors of a total of $230 million. This time, Hattab and his cohorts ripped off investors of more than $35 million using phony identities and empty promises of access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine.

“This defendant admitted scheming with others – including Eli Weinstein – to defraud investors of millions of dollars,” said U.S. Attorney Philip R. Sellinger. “Using phony identities and empty promises of access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine, they ripped off their victims. We will continue to pursue justice for everyone involved in this case. Securities and investment fraud enforcement is a top priority of this office, and this case reflects our firm commitment to protecting investors and our markets.”

Two of Hattab’s conspirators, Christopher Anderson, 47, and Richard Curry, 36, previously pleaded guilty to conspiracy to commit securities fraud and are awaiting sentencing. Charges are still pending against Hattab’s other conspirators, including Weinstein, Aryeh “Ari” Bromberg, Joel Wittels, and Shlomo Erez.

Weinstein was convicted two times in New Jersey federal court for defrauding investors. His first case involved a real estate Ponzi scheme, and his second case stemmed from additional fraud Weinstein committed while on pretrial release. For these crimes, which resulted in combined losses to investors of approximately $230 million, Weinstein was sentenced to serve 24 years in prison, followed by three years of supervised release. On January 19, 2021, after Weinstein had served less than eight years, the President of the United States at that time commuted Weinstein’s term to time served, leaving intact the rest of his sentence.

After being released from prison, Weinstein began orchestrating a new scheme to solicit money from investors through a company called Optimus Investments Inc. (Optimus). Using the fake name “Mike Konig,” Weinstein ran Optimus with Bromberg and Wittels. Hattab served as a broker for Optimus and helped conceal Weinstein’s involvement in various business ventures from investors.

Source: https://www.justice.gov/usao-nj/pr/canadian-resident-admits-conspiring-convicted-ponzi-schemer-and-others-defraud-investors