SEC Charges Twice-Convicted Fraudster Eliyahu Weinstein and Five Others with $38 Million Ponzi-Like Scheme to Defraud Investors

Together with Weinstein, the Securities and Exchange Commission (SEC) has charged Aryeh L. Bromberg, Joel L. Wittels, Richard M. Curry, Christopher J. Anderson, and Alaa Mohamed Hattab for their involvement in a fraudulent scheme that centered around raising investments for purported deals related to purchasing, distributing, and selling high-demand healthcare products.

According to the SEC, the fraudulent activities began around November 2021 when Weinstein, Bromberg, and Wittels raised funds from investors for supposed deals through Optimus Investments Inc. They intentionally concealed Weinstein’s identity, criminal history, and participation from the investors. Later, in January 2022, Anderson and Curry are alleged to have started raising money for Optimus deals through Tryon Management Group LLC. By August 2022, they also joined the other defendants in actively hiding Weinstein’s role in the venture. Hattab is accused of significantly assisting the other defendants in executing the scheme.

The complaint indicates that by at least April 2022, some of the purported Optimus deals turned out to be unprofitable. Subsequently, Weinstein, Bromberg, Wittels, Curry, and Anderson reportedly engaged in a fraudulent scheme. They used funds obtained from new investors to make Ponzi-like payments to earlier investors while misrepresenting these payments as investment returns. The SEC asserts that the defendants’ combined fraudulent actions resulted in raising at least $38 million from approximately 150 investors.

Notably, Weinstein is a twice-convicted felon, having pleaded guilty to wire fraud and money laundering in a real estate Ponzi scheme causing $200 million in losses in 2013. He pleaded guilty again in 2014 to fraud, conspiracy, and money laundering charges in connection with a $6.7 million fraudulent securities offering. For both schemes, Weinstein received a 24-year prison sentence, which was commuted to time served by then-President Donald J. Trump on January 20, 2021.

The SEC’s complaint, filed in the U.S. District Court for the District of New Jersey, accuses Weinstein, Bromberg, Wittels, Curry, Anderson, and Hattab of violating and/or aiding and abetting violations of the antifraud provisions under Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The SEC seeks permanent injunctive relief, disgorgement with prejudgment interest, civil penalties, officer and director bars, and conduct-based injunctions for each defendant. The conduct-based injunction would prohibit their future participation in the sale of promissory notes and investment contracts.

The SEC expresses gratitude for the assistance provided by the U.S. Attorney’s Office for the District of New Jersey and the FBI during the investigation.