Litigation Releases (Eliyahu Weinstein, Aryeh L. Bromberg, Joel L. Wittels, Richard M. Curry, Christopher J. Anderson, Alaa Mohamed Hattab, and Shlomo Erez)

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26049 / July 15, 2024

Securities and Exchange Commission v. Eliyahu Weinstein, Aryeh L. Bromberg, Joel L. Wittels, Richard M. Curry, Christopher J. Anderson, Alaa Mohamed Hattab, and Shlomo Erez, No. 3:23-cv-03848 (D.N.J. filed July 19, 2023, amended July 12, 2024)

SEC Charges Additional Defendant in Connection with $38 Million Ponzi-Like Scheme to Defraud Investors

The Securities and Exchange Commission filed an Amended Complaint adding Shlomo Erez, a citizen of Israel, as a defendant in its previously filed action alleging a multi-million-dollar Ponzi-like fraud scheme, which involves raising money from investors to fund purported deals to purchase, distribute, and sell in-demand healthcare products.

The SEC alleges that defendants concealed twice-convicted fraudster defendant Eliyahu Weinstein's involvement, identity, and criminal history, and they used funds raised from investors to make Ponzi-like payments to earlier investors. According to the SEC's Amended Complaint, filed in the U.S. District Court for the District of New Jersey, Erez aided and abetted the fraudulent scheme-orchestrated by Weinstein and other co-defendants-by diverting investor funds for Weinstein's benefit, providing false assurances to existing investors to assuage their concerns, and assisting the other defendants in concealing Weinstein's identity from investors.

The SEC's Amended Complaint charges defendants Weinstein, Aryeh L. Bromberg, Joel L. Wittels, Richard M. Curry, and Christopher J. Anderson with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and charges Erez and Alaa Mohamed Hattab with aiding and abetting these violations. The SEC seeks against all defendants permanent injunctive relief, disgorgement and prejudgment interest, civil penalties, officer-and director-bars, and conduct-based injunctions.

The SEC appreciates the assistance of the U.S. Attorney's Office for the District of New Jersey and the FBI.

The SEC's investigation was conducted by Teresa A. Rodriguez, Mary Kay Dunning, Laurel S. Fensterstock, Stewart Gilson, Neil Hendelman, and Wendy B. Tepperman and supervised by Tejal D. Shah, all of the New York Regional Office. The Commission's litigation is being led by Jack Kaufman of the New York Regional Office.

For further information, please see Litigation Release No. 25786 (July 24, 2023).