A New Jersey man is identified and suspected for swindling more than $200 million from Orthodox Jewish investors in a real estate scam.
The Police are investigating Eliyahu Weinstein of Lakewood, from New Jersey, on suspicion that he evades payment millions from members of Orthodox Jewish communities in New York, Miami and London through scamming or bogus real estate deals.
The Jewish Week reported that 14 investors, almost all are Orthodox Jews, have filed protest with the New Jersey Federal Court against Weinstein alleging that he misappropriated their money.
According to one of the complainants, the 35-year-old entrepreneur used his background as a yeshiva student to gain their trust and then misappropriated their money.
Weinstein “engaged in a criminal enterprise designed to steal sums of money… by offering knowingly false representations… relating to the identity of various alleged investment properties, property values, ownership, debt, mortgage positions, and development status of property,” the Jewish Week quoted one of the complainants as saying.
Weinstein has not been charged with any of the allegations, which are subject to an ongoing police probe.
The attorney Gary Ginsburg, speaking on the behalf of Weinstein, denied the complainants’ claims. He told the Jewish Week that the losses to investors were the result of the downturn in the real estate market rather than malfeasance on Weinstein’s part.