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In Trenton federal court Aug. 30, two individuals admitted to conspiring in a scheme that defrauded investors of more than $35 million.

United States Attorney for New Jersey Philip Sellinger announced that Christopher Anderson, 47, of Flemington, and Richard Curry, 36, of Northumberland, Pa., each pleaded guilty to a charge of conspiracy to commit securities fraud.

Prosecutors say the alleged scheme, which NJBIZ reported on last month, was spearheaded by Eliyahu “Eli” Weinstein, 48, of Lakewood, who – after being twice convicted of defrauding investors of a total of $230 million – had his 24-year federal prison sentence commuted by former President Donald Trump in 2021.

In that indictment, unsealed by Sellinger’s office last month, Weinstein and four others – Aryeh “Ari” Bromberg, 49, and Joel Wittels, 57, of Lakewood, as well as Shlomo Erez, 55, a citizen and resident of Israel, and Alaa Hattab, 34, of Ottawa, Canada – were charged with wire fraud conspiracy and conspiracy to obstruct justice.

Prosecutors have alleged that as soon as Weinstein was released from prison, he began cooking up a new scheme to solicit money through a firm called Optimus Investments Inc. using the fake name Mike Konig to run the “company” with some of the co-conspirators.

The complaint alleges that Optimus received the bulk of its investor money through a second company, Tryon Management Group, that was controlled by Anderson and Curry. While the pair were previously not charged but referenced as co-conspirators in the criminal indictment, they were charged in a separate complaint filed by the U.S. Securities and Exchange Commission.

“Anderson and Curry admitted, among other things, to conspiring with each other, Weinstein, Bromberg, Wittels, Hattab, and Erez to make materially false and misleading statements and omissions to investors and potential investors,” according to case documents and court statements released by prosecutors. “These statements included actively concealing Weinstein’s identity, history of fraud and role in purported investments, and falsely claiming that investors funds would be used to invest in lucrative deals.”

“These two defendants admitted scheming with Eli Weinstein and others to rip off investors to the tune of millions of dollars,” said Sellinger. “They admitted that this scheme used phony identities and false promises of access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine to defraud their victims. They will now face justice for their crimes, and we will continue to pursue the other alleged conspirators.”

“Anderson and Curry are admitting they took part in a scheme that created millions of dollars in loss for the victims,” said FBI Newark Special-Agent-in-Charge James Dennehy.

Prosecutors note that the charges against the other defendants remain pending.

The charge of conspiracy to commit securities fraud carries a maximum penalty of 20 years in prison and a $5 million fine. Sentencing for Anderson is scheduled for Jan. 16, 2024, and for Curry on Jan. 18, 2024.

“Although it’s not easily understood, scams like this impact people’s lives in a very real way,” Dennehy added. “We’re asking anyone who believes they are a victim or know of an investment that doesn’t pass the smell test, to reach out to us at the Newark FBI. We will do all we can to hold those fraudsters accountable and protect the next potential victim.”

See also:

• Former NJ corrections officer charged in crypto fraud scheme
• Florida man admits $3.6M Jersey-centered health care scheme
• Former pharmacy president admits role in $32M kickback scheme