TRENTON, N.J. – Shlomo Erez, a 56-year-old Israeli man, has pleaded guilty to conspiring to defraud investors of more than $35 million in a Ponzi scheme, and to conspiring to engage in money laundering and obstruct justice, U.S. Attorney Philip R. Sellinger announced.
Erez, who is expected to face justice for his crimes, was part of a group that used phony identities and false promises to lure victims into investing in deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine.
According to documents filed in the case, Shlomo Erez admitted to helping Eliyahu “Eli” Weinstein, a twice-convicted fraudster, hide his identity from investors and rip them off for millions of dollars. Weinstein’s sentence was commuted by the former President of the United States after he served less than eight years of a 24-year prison sentence for defrauding investors of $230 million.
As part of the new scheme, Weinstein used the fake name “Mike Konig” to solicit money from investors through a company called Optimus Investments Inc. (Optimus). The money was then received through a second company, Tryon Management Group LLC, which was owned and controlled by Christopher Anderson, 47, and Richard Curry, 36.
Anderson, Curry, and three other co-conspirators – Alaa Hattab, 35, Joel Wittels, 57, and Aryeh “Ari” Bromberg – have already pleaded guilty to conspiracy to commit securities fraud. Wittels also pleaded guilty to conspiracy to obstruct justice and to conspiracy to engage in the unlicensed wholesale distribution of prescription drugs.
The U.S. Attorney’s Office warned that charges are still pending against conspirators Weinstein and Bromberg. The scheme used phony identities and false promises to lure victims into investing in deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine.
U.S. Attorney Philip R. Sellinger stated, “Financial crimes like the charges Shlomo Erez pled guilty to today cause great emotional harm to the numerous victims who trusted this defendant with their hard-earned money.”
Jenifer L. Piovesan, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, added, “We will continue to aggressively investigate cases of people who victimize others for their own financial gain.”
Related Federal Cases
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- Patrick Giblin Admits to Dating Scam Fraud Scheme · Pennsylvania
- Hiral Patel Admits to Obstructing Justice in Visa Fraud Scheme · New Jersey
Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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