Eliyahu Weinstein, Whose Sentence Was Commuted by Trump, Faces Fraud Charges
WHAT YOU SHOULD KNOW
- Eliyahu Weinstein had his 24-year sentence commuted by former President Donald Trump but is now facing fraud charges brought by the SEC.
- The SEC alleges that Weinstein and five others used investor funds to pay earlier investors, misrepresenting them as investment returns.
- Trump has been known to use his power of clemency for allies and associates, including pardoning political strategist Roger Stone and commuting the sentence of former Illinois governor Rod Blagojevich.
On Monday, Eliyahu Weinstein, whose 24-year sentence was commuted by former President Donald Trump, was charged with fraud in connection with an alleged scheme that began shortly after his release from prison. Weinstein had previously been convicted of defrauding investors twice, resulting in losses totaling around $230 million. The U.S. Securities and Exchange Commission (SEC) brought the charges against him and five others involved in the scheme.
According to reports, the SEC alleges that Weinstein and his associates used investor funds to pay earlier investors, falsely presenting the payments as investment returns. Some of the deals associated with the scheme failed to generate profits, leading to significant financial losses for the victims. U.S. Attorney Philip Sellinger described the operation as a sophisticated fraud scheme that caused losses amounting to millions of dollars. Weinstein allegedly used a fake name and made false promises of providing access to deals involving essential medical supplies, baby formula, and first-aid kits for wartime Ukraine
This case comes at a time when former President Donald Trump, who is a candidate for the 2024 presidential election, has previously used his power of clemency to pardon individuals like political strategist Roger Stone and commute the sentence of former Illinois governor Rod Blagojevich. Both Stone and Blagojevich had faced convictions for various offenses before receiving clemency from Trump. If re-elected, Trump’s history of using clemency for allies and associates may continue to be a point of interest and controversy.
Investing Salary provides free access to quality, truthful news for everyone, believing that information should be equally accessible. We hope that this will enable more people to stay informed about current events, understand their effects, and be motivated to take action.
If you feel that we have helped you get the right market knowledge please consider supporting us through Patreon. Even a single dollar counts.