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Two Men Plead Guilty in $35 Million Securities Fraud Scheme Linked to Twice-Convicted Fraudster
Flemington, NJ Resident Christopher Anderson and Pennsylvania's Richard Curry Admit to Conspiring with Eli Weinstein in a Scheme Involving False Promises and Phony Identities.
Two individuals, Christopher Anderson, 47, of Flemington, New Jersey, and Richard Curry, 36, of Northumberland, Pennsylvania, pleaded guilty in Trenton federal court to conspiracy to commit securities fraud, admitting to defrauding investors of more than $35 million, according to U.S. Attorney Philip R. Sellinger.
Who?
Christopher Anderson and Richard Curry each pleaded guilty to one count of conspiracy to commit securities fraud. They admitted to conspiring with others, including Eliyahu "Eli" Weinstein, who has been twice convicted for defrauding investors of a total of $230 million.
What?
The duo confessed to a fraudulent scheme involving false promises, misleading statements, and the use of phony identities. The scam focused on purported investments in scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine.
When?
The sentencing for Anderson is scheduled for January 16, 2024, and for Curry, January 18, 2024.
Where?
The guilty pleas were entered before U.S. District Judge Michael A. Shipp in Trenton federal court.
Why?
According to U.S. Attorney Sellinger, the two defendants aimed to "rip off investors to the tune of millions of dollars." FBI – Newark Special Agent in Charge James E. Dennehy mentioned that scams like these have a "very real" impact on people's lives.
How?
The pair actively concealed Weinstein’s identity, history of fraud, and role in the purported investments, making materially false and misleading statements to investors and potential investors.
Weinstein, Aryeh "Ari" Bromberg, Joel Wittels, Shlomo Erez, and Alaa Hattab have also been charged in connection to the same scheme. These charges remain pending and are merely accusations at this point.
Legal Consequences
Conspiracy to commit securities fraud can result in a maximum penalty of 20 years in prison and a $5 million fine.
U.S. Attorney Sellinger credited the FBI, under the direction of Special Agent in Charge Dennehy, and expressed appreciation for the Securities and Exchange Commission's involvement.
This case serves as a cautionary tale for investors, highlighting the risks of fraudulent schemes that may appear legitimate. The authorities continue to urge the public to report any suspicious investments, as the investigation is ongoing and aims to hold all involved accountable.
