Two men have been charged in an alleged $200 million real estate fraud that targeted Orthodox Jews in four states and overseas, according to court documents made public Thursday.
Eliyahu Weinstein, who represented himself as a real estate investor based in New Jersey, allegedly exploited the social and business customs of the Orthodox Jewish community to carry out the scheme, according to a criminal complaint.
The scam allegedly began in September 2005. Weinstein and Vladimir Siforov, of New York, were charged with fraud in the matter. They were expected to appear in federal court in Newark. N.J., later Thursday.
Some of his victims’ money was used by Weinstein to amass a substantial collection of art, jewelry and Judaica, prosecutors from the U.S. Attorney’s office in Newark alleged.
The collection included manuscripts and antique Judaica items worth about $6.2 million; a jewelry and clock collection that Weinstein allegedly spent $7.6 million to acquire; jewelry and watches valued at $6.2 million, including items from Bulgari, Cartier, Omega and Harry Winston, according to the complaint.
Weinstein allegedly use contacts in the Jewish community to meet potential investors and falsely represented he owns or could purchase properties. Many of the victims were from New Jersey, New York, Florida, California and overseas, prosecutors said.
He often claimed to investors that he had another party lined up to buy or rent the property and they could earn a healthy profit in a short period but the “buyers” were actually other members of the scheme.
Weinstein allegedly maintained multiple passports and told one investor: “if I want to run away, I can,” according to the complaint.
Read the full report at WSJ.com