Eliyahu Weinstein, the nortorious haredi scammer who took tens of millions of dollars from business partners and banks, was arrested by the FBI this morning along with three other haredim (one of whom I know personally) on fraud and bank related charges, several sources close to the case told FailedMessiah.com.
Notorious Haredi Scammer Eliyahu Weinstein, 3 Other Haredim, Busted By FBI
Shmarya Rosenberg • FailedMessiah.com
Eliyahu Weinstein, the nortorious haredi scammer who took tens of millions of dollars from business partners and banks, was allegedly arrested by the FBI this morning along with two three other haredim (who I will not name until their arrests are confirmed; I know the third haredi man personally), one from Brooklyn and the others from Lakewood, on fraud- and bank-fraud-related charges, several sources close to the case exclusively told FailedMessiah.com.
Weinstein pleaded guilty to one count of wire fraud conspiracy and one count of money laundering in a plea deal in January and faces up to 25 years in prison on those charges
He was – at least until this morning – free on bail pending sentencing.
I have no more details about the arrest at this time. As soon as more information is available, I'll report it.
Update 11:12 am CDT – Here are the names of first two haredim arrested with Weinstein:
63-year-old Aaron Muschel of Brooklyn, N.Y., and 47-year-old Alex Schleider of Lakewood.
Weinstein, Muschel, Schleider and the fourth man, F.T., allegedly stole more than $6.5 million from an investor, partly by falsely claiming that they had special access to Facebook shares before the company's IPO went public.
The US Attorney's office is now confirming the arrests of Weinstein, Muschel and Schleider.
Update 11:42 am CDT – a Rabbi C.B. who is a major player in a synagogue, K., in Brooklyn was named as an unidited co-conspirator. This **may** a certain figure associated with a leading haredi umbrella organization. Update 1:55 pm CDT – It isn't that Rabbi C.B. – According to two sources very close to the case, it is another well-known haredi rabbi, Chaim Shea Babad.
Update 12:03 pm CDT – The criminal complaint:
Update 12:27 pm CDT – the charges and possible sentences:
Update 12:30 pm CDT – The role of Rabbi "C.B.":
The government is also "seeking the seizure and forfeiture of all funds fraudulently obtained by the defendants, including three pieces of real property allegedly maintained with the proceeds of the scheme."
Update 2:28 pm CDT – Exclusive: According to two different sources extremely close to the case, the INDICTED but unnamed "co-conspirator #1 is Rabbi Fishel Todd.
More on Weinstein: