TRENTON, N.J. – In a shocking turn of events, Shlomo Erez, a 56-year-old Israeli man, has pleaded guilty to conspiring with convicted Ponzi schemer Eliyahu Weinstein in a scheme that raked in over $35 million from unsuspecting investors.
Erez, who faces up to 20 years in prison, admitted to helping Weinstein hide his true identity from investors while evading hundreds of millions of dollars in restitution to victims of Weinstein’s prior fraud schemes.
The scheme, which used phony identities and false promises of access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine, defrauded victims out of tens of millions of dollars.
Weinstein, who was twice convicted of defrauding investors out of a total of $230 million, had his 24-year federal prison sentence commuted by the then-President of the United States in 2021, leaving intact the rest of his sentence.
“Shlomo Erez admitted to helping Eliyahu ‘Eli’ Weinstein, a twice convicted fraudster, hide his identity from investors, ripping them off to the tune of millions of dollars and evading hundreds of millions of dollars in restitution to victims of Weinstein’s prior fraud schemes.”
U.S. Attorney Philip R. Sellinger made the statement after Erez pleaded guilty to one count of conspiracy to commit securities fraud, one count of conspiracy to commit money laundering, and one count of conspiracy to obstruct justice before U.S. District Judge Michael A. Shipp in Trenton federal court.
Four of Erez’s conspirators – Christopher Anderson, 47, Richard Curry, 36, Alaa Hattab, 35, and Joel Wittels, 57 – previously 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.
Charges are still pending against conspirators Weinstein and Aryeh “Ari” Bromberg.
“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,” said Jenifer L. Piovesan, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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