Eliyahu Weinstein Free On $10 Million Bail

Eliyahu Weinstein, a New Jersey man charged with leading a $200 million Ponzi scheme that targeted fellow Orthodox Jews, was granted $10 million bail today by a U.S. judge

Weinstein Gets Bail in $200 Million Ponzi Scheme
David Voreacos • Bloomberg

Aug. 26 (Bloomberg) -- Eliyahu Weinstein, a New Jersey man charged with leading a $200 million Ponzi scheme that targeted fellow Orthodox Jews, was granted $10 million bail today by a U.S. judge.

Weinstein, 35, was accused Aug. 12 of running a real-estate investment fraud that duped victims in New Jersey, New York, Florida, California and abroad.

Weinstein, who faces as many as 50 years in prison, has been in custody since his arrest. A prosecutor opposed bail for Weinstein, saying he poses a “profound” risk of fleeing if released before trial.

The bond must be secured by four properties with $4.2 million in equity. Weinstein must live under 24-hour house arrest in Lakewood, New Jersey, and undergo electronic monitoring with a global positioning system, said U.S. Magistrate Judge Mark Falk. Weinstein also can’t go near any airports.

“There’s no question that given the circumstances here, there is a risk of flight,” Falk said in federal court in Newark, New Jersey. “While none of this is foolproof, it certainly is the best that is available and would impose a serious obstacle to someone trying to fly out of the country.”

Weinstein was charged with committing bank fraud and wire fraud from 2005 to this month. Vladimir Siforov, 43, who was charged with wire fraud, remains at large.

Community Ties

By using “lies, threats, deliberate misrepresentations and even counterfeit checks,” Weinstein and Siforov “exploited the close community ties of the Orthodox Jewish community for one goal: to steal money through an elaborate real estate and Ponzi scheme,” Michael B. Ward, special agent in charge of the Federal Bureau of Investigation’s office in Newark, said in a statement on Aug. 12.

New victims come forward daily, and the fraud caused “at least a $200 million loss,” Assistant U.S. Attorney Zach Intrater said today at the bail hearing. “The vast bulk of this money is missing, and the number keeps climbing.”

Weinstein, a bearded, bespectacled man with a wife and five young children, appeared at the hearing in a green shirt from the Hudson County Detention Center. About 40 members of the Orthodox Jewish community supported him in the courtroom.

His attorney, Ephraim Savitt, asked Falk for a $5 million bail package secured by the four properties. He also proposed home confinement and electronic monitoring, saying Weinstein posed no risk of flight and is “eminently bailable.”

Savitt assailed the investors who went to the FBI, saying one perjured himself in a civil deposition.

‘Unregulated Money Lending Machine’

“These victims are really an unregulated money lending machine,” Savitt said.

In a letter to the judge, Savitt said Weinstein was close to settling an $80 million lawsuit against him in Trenton, New Jersey, and that judgments had been entered against him of $35 million in Philadelphia and $6 million in New York.

After Weinstein’s arrest, Savitt said, he was the victim of extortion attempt at the jail, when he was “approached by a gang member who said he would provide for Mr. Weinstein’s protection within the facility.” The alleged extortionist was released on bail, and he called Weinstein’s wife to demand a down payment, Savitt told Falk.

Intrater argued that Weinstein has “a profound motive to flee,” saying that he has flown out of the country 40 times since 2007, including to Israel, Russia and Ukraine.

Of the four properties Weinstein was posting to secure his bond, one was owned by a man who was convicted of failing to file a currency transaction report, Intrater said. When authorities searched Weinstein’s house, the prosecutor said, his wife, Rivka, “attempted to sneak jewelry out of the house in the undergarments of a housekeeper.”

‘Very Relieved’

After the judge granted bail, Savitt said in an interview: “I’m very relieved. It was the right result.”

The FBI arrest complaint said Weinstein falsely represented that he owned or could buy property and that victims could make “a healthy profit in a short time period.” He sold his real or fake interest in property multiple times, fraudulently altered checks, drew up phony leases and hid zoning changes from his victims, according to the FBI.

When investors tried to collect their earnings, he ignored them, promised payments that never came, and paid smaller amounts than he owed, according to the complaint.

Weinstein used proceeds of the fraud to amass manuscripts and antique Judaica worth $6.2 million, a jewelry and clock collection that he bought for $7.6 million, and another jewelry and watch collection valued at $6.2 million.

He also charged $1.7 million to an American Express account, according to the complaint.

The case is United States of America v. Weinstein, 10-mj- 7115, U.S. District Court, District of New Jersey (Newark).

--With assistance from David Glovin in New York. Editors: Andrew Dunn, Mary Romano

[Hat Tip: Burich.]

Comments

[larry]

I know we are not aproching Pesach, but:

Why are the judges in Iowa diferent then most/all judges in this whole great country?

In most other places, judges are able to give bail, (to this $200,000,000, even to Madof, yet in Iowa, for $27,000,000 you don't qualify for bail???

[Shmarya]

In most other places, judges are able to give bail, (to this $200,000,000, even to Madof, yet in Iowa, for $27,000,000 you don't qualify for bail???

This question has been answered several times for you but you do not seem to be able to understand the answers.

That said, I'll try again.

Rubashkin helped Hosam Amara flee indictment. Rubashkin gave him money and told him to run to Israel.

That was the main reason why Rubashkin was first denied bail.

After he eventually got bail, Rubashkin continued to commit crimes.

This, the Amara episode, and Rubashkin's potential sentence of of 30 years in prison made him a flight risk and also made it nearly impossible to grant bail.

Every expert I spoke with was certain Rubashkin would not get bail, and that is exactly what happened.

It had little to do with Iowa and very much to do with Rubashkin's behavior.

[Hometown Postville]

Wow! He makes SMR look like a saint! But since he committed crimes against his own people, maybe Otisville would not be safe for him!

[larry]

"Rubashkin helped Hosam Amara flee indictment. Rubashkin gave him money and told him to run to Israel."

Shmarya, you and the prosocutors made that up from thin air. WHERE IS THE PROOF???

"Rubashkin's potential sentence of of 30 years in prison made him a flight risk and also made it nearly impossible to grant bail."

How many years does one face for $50 bilion ponzy, or $200 milion ponzy??? Yes i know you detest Rubashkin, but he was not treated remontly similart to the way judges treat people all across this great county...

This question has been answered several times for you but you do not seem to be able to understand the answers.

Shmarya, in your world, repeating LIES over and over make this (your) truth and reality...

[Shmarya]

How many years does one face for $50 bilion ponzy, or $200 milion ponzy??? Yes i know you detest Rubashkin, but he was not treated remontly similart to the way judges treat people all across this great county...

Please.

Did you 'forget' about this from January 2009? U.S. Judge Linda Reade ordered former Agriprocessors CEO Shalom Rubashkin’s bail reduced this morning, facilitating his release from jail awaiting trial.

Reade reduced Rubashkin’s bond to $500,000 and allowed him released from jail under several conditions, including: that he and his family surrender their passports and birth certificates; that he wear an electronic monitoring bracelet; and that his travel be restricted to Allamakee County.

In response to allegations that Rubashkin violated court orders, Reade ordered Rubashkin not to have contact with potential witnesses. He also was barred from setting foot on Agriprocessors property.So, you see, when Rubashkin did get bail – authorized by the judge you call antisemitic, no less – it was $500,000, 1/20th of Weinstein's bail.

Rubashkin's fraud was 1/10th the scale of Weinstein's so, if calculated just on the financial loss, Rubashkin's bail should have been twice what it was.

But, like I've said many times previously, Rubashkin supporters are not interested in the facts.

[Shmarya]

"Rubashkin helped Hosam Amara flee indictment. Rubashkin gave him money and told him to run to Israel."

Shmarya, you and the prosocutors made that up from thin air. WHERE IS THE PROOF???

Idiot.

Look at the indictments. You'll see the proof.

Shmarya, in your world, repeating LIES over and over make this (your) truth and reality...

You're wrong, 'larry.'

It is your world that keeps repeating lies.

[WoolSilkCotton]

We've had Rubashkin acolytes named Moe, and now Larry... is there going to be a Curly, Shemp, or maybe Joe?

Wait, we've had a Rubashkinite Joe. Would still like to see a Curly or Shemp. Any volunteers?

[danny]

So when are we going to learn the identities of the rabbis who helped Weinstein troll for clients?

[for shame!]

Out of curiousity Shmarya- Is it of any concern to you the chillil hashem that you are perpetrating by posting anything and everyting negative about the Orthodox community? Granted those that commited the crime are guilty of this as well but you obviouslly hold yourself better then them. Well then stop feeding al the self hating Jews and anti semites their daily dose of inspiration. AGAIN I reiterate I understand that those that crossed the law are at fault but what you are doing is quite dispicable.

[Red Sox Fan]

Where the heck did they come up with $10 million?

[Justice Seeker]

Dear Larry: Outrage doesn't look good on you. Now if you were questioning why Weinstein received bail, that would be reasonable. Runbashkinites always give themselves away. Which one are you?

[Robert Wisler]

For Shame,
The shame is the Orthodox Jewish community. The fraud of Esav sonei le-Yaakov is an utter lie. Anti-Semitism is brought upon us as a punishment by our own filthy behavior, not because of the evil of b'nei Esav (whoever that might be in today's world).

It is a blessing for the Jewish people to have people like Shmarya to expose our community's deep ugliness and the Chillul Ha-shem that the Jewish people perpetrate against our God. Instead of bitching like you do, have some character and be a true follower of Torah and call upon and DEMAND that your community repent and change their ways.

Rubashkin, Weinstein, etc committed crimes against the laws of man and more importantly against the laws of God. Call on THEM to repent. Expose THEIR Chillul Ha-shem.

Torah never covers up the evil done by the B'nei Yisroel. It in fact commends those who expose our evil and bring us to repentence. Why should the evil perpetrated by Jews today be hidden? Thank Shmarya, whatever his motives, for exposing our evil and presenting our sins to us so that we can repair the damage that we do as sinful human beings.

[larry]

Justice Seeker,

I'm saying that in almost the entire USA bail is granted to much bigger crooks then Rubashkin. Its seems like in Iowa, there is a diferent set of laws..

or maybe its not that the laws in Iowa are diferent, only for Agri... see this story:
www.jewishpress.com/pageroute.do/45006/

fact is: most go out on bail, rubashkin was denied bail. bottom line, he wasnt treated equal the the way others are treated.

[Monsey Hocker]

The news of this bail is a terrible blow to the jewish community, which thrives on being able to point to any action by any human as proof of antisemitism. Wait, this just in - when the judge granted bail, he farted terribly as a result of his bean burrito lunch destroying the air in the court room. Pure antisemitism. Phew!

[larry]

Monsey Hocker,

In most cases, honest judges act normaly and fairly.

It seems like in Iowa the case is different.

[Menachem Mendel lll]

What's $10,000,000.00 to Eliyahu Weinstein when he has $190,000,000.00 left in his savings account collecting interest compounded daily.

How do you spell BOBKES?

[Menachem Mendel lll]

"About 40 members of the Orthodox Jewish community supported him in the courtroom"

I am proud to be born a Jude.
LUCKY ME!

[larry]

Hey, this is America, and you are entitled to bail - even if acused of major financial crimes.

Unless you are judged and prosocuted by the good folks in Iowa...

[OMG]

Larry, I don’t know what is ailing you, but it is, either you are the “the simpleton from the seder, what does he say? "What is this?” or you have attention deficit disorder, you see Rubashkin did get bai, prior to the guilty conviction, but you are trying to cite post conviction were Rubashkin demanded bail before sentencing. Well you show me another identical or just a similar case were the convict got bail. In the mean time, please take your meds.

[Office of the Chief Rabbi]

WSC-
Moe-Shiach
The Savior for knuckleheads.

[larry]

What did it take for him to get bail prior to being convicted??? They attempted EVERY TRICK IN THE BOOK to deny bail – and kept him in jail for 72 days! Reason? Well he’s Jewish! Oh, they also found several thousand dolors in his house…. (much of it in singles – charity money!).

Oh, they also found some silver coins, used for “machatzit hashekel” and “pidyon haben”.

Bottom line, unlike the overwhelming majority of judges in this great country, in Iowa it took INTERNATIONAL pressure to secure the begrudgedly granted bail (after undue imprisonment for 72 days).

Oh, and shmarya will point to the vast, “damming” evidence that the prosecution concoted to deny bail. These guys in Iowa are a real joke.

[Shmarya]

Oh, and shmarya will point to the vast, “damming” evidence that the prosecution concoted to deny bail. These guys in Iowa are a real joke.

Please.

I showed you that Rubashkin's pre-trial bail was far less than Weinstein's, and that if one prorates it by the dollar amount of the fraud, Rubashkin's bail was half of what it should have been compared to Weinstein.

I also showed you that Rubashkin helped a co-conspirator, Hosam Amara, flee to Israel.

And the silver coins you mention were found with thousands of dollars in cash in a bag in Rubashkin's closet. In that bag were the passports of his family.

But facts mean nothing to you.

You're a zombie, a brainwashed acolyte.

And you will never let the facts get in the way of your fantasy.

[The Big Magustameister]

Zevy S.
Your day for being exposed for the fraud that you are is so close.
Hobnobbing w/ EW & thinking you could hide in Beis Medrash.
Fake, Phony Fraud.
all u worship is Money.
There is no G-d in your life.
Your day of reckoning is so close.

[Hometown Postville]

Robert Wisler: For Shame.....

Very wise words, Robert. And the labels Catholic, Lutheran, Baptist, Methodist, black, white, oriental, hispanic, etc... could be substituted as well. It is the sin of MAN that spells CORRUPT, NOT the specific religion or culture! The sad part is when criminals hide behind their religion or culture to justify their actions. It only makes the rest of their sect look bad and dilutes their accountability.
And in The Big Magustameister's words:
all u worship is Money.
There is no G-d in your life.
Your day of reckoning is so close.

[Isa]

R. Allen Stanford
Ever hear of him??

In jail now in Houston.
Sort of like Madoff except this guy (Stanford) would take pennies from the masses (and fortunes from the rich)

The government CONFISCATED everything.

Can't make bail because of NO assets (ha ha ha)

No money to pay lawyers except some insurance policy that now the insurance company is trying to wiggle out of.

The government should have CONFISCATED ALL of Weinsteins assets but didn't

[rebeljew]

We count on this site and it sonei yisroel to judge this poor victim of judicial antisemitism that we have seen so much frequently. The R'SH'O should see to it that never spends a minute in jail. He probably has children and that is no place for him to sit and be unproductive while he could be productive in society. Let's all pray for Reb Eliyahu that he should be shown true justice and set free, so he can give much more tzedakah.

Sorry, I just thought I'd say it before someone else did.

[Der Nister]

Shabbos 31A- When a man dies and gets before the heavenly court he is asked four questions. First Question "Where you honest in your business dealings?" Question: Why is this the first question and not did you learn Torah or keep shabbas. Answer: without integrity and honesty in business dealings, performance of all the other mitzvot is worthless.

Kohelet: V'Hakesef ya'aneh et hakol.

[Solomon Dwek]

Wonder who the two people are who put up their homes AND WHO ADVISED THEM TO DO SO.

[Yankel Yissachar]

This Weinstein cholerea has learned at the feet of the Great Rasha: Joey Friedman, the WexTrust thief. Similar M.O. (modus operendi, not Modern Orthodox): lie and steal exclusively from the dati yishuv, feign being on the derech, and live a modest lifestyle while quietly dispersing your ill-gotten gains to foreign accounts in the names of non-family members. Nothing new here folks. Please move along.

[sunnyside]

solomon dweck:
whathout everyone!, This weinstein is out on bail and may be wiredup to record as to set up people and save himself from jail time just like the dweck drek did!
B. The 6 million dollar bail should be used to pay off all the victims that were ROBBED of their money! "thou shalt not steal" is one of g-d's commandments that applies to all ! may god repay those who were fooled robbed and may the perpetrator rot and rot...

[Menachem Mendel lll]

"Thou Shall Not Get Caught Stealing"

Please be advised this above revision of the original 10 Commandments (see Exodus 20:2–17) applies equally to fornicating, gang banging hot babes, scamming, embezzling, forgery, fraud etc.

[Mr. Apikoros]

How could this man be a criminal? He's a frume yiddel.

In addition, Weinstein made bail on Friday, but still sits in jail because of anti-Semitism, of course.

(This latter tidbit comes courtesy of VIN.)