41° and Sunny
Canadian Conspires with Notorious Ponzi Schemer to Defraud Millions from Investors
U.S. Attorney exposes multi-million dollar scam involving fake deals for medical supplies and baby formula aimed at wartime Ukraine.
TRENTON, NJ: A Canadian resident, Alaa Mohamed Hattab, 35, from Ottawa, Ontario, pleaded guilty to a conspiracy charge, admitting his role in a scam that defrauded investors out of over $35 million, announced U.S. Attorney Philip R. Sellinger.
Hattab was charged with one count of conspiracy to commit securities fraud and acknowledged his collaboration with individuals, including the infamous Eliyahu "Eli" Weinstein. Weinstein, known for his previous convictions, had defrauded investors to the tune of $230 million.
"Using phony identities and empty promises of access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine, they ripped off their victims," stated U.S. Attorney Sellinger.
FBI – Newark Special Agent in Charge James E. Dennehy remarked on the audacity of the fraudsters: “Fraudsters will use any and every method they can to steal as much as they can, even using a deadly war raging in Europe,” highlighting Hattab's association with Weinstein, a known fraudster.
Two other accomplices in this scheme, Christopher Anderson, 47, and Richard Curry, 36, had previously entered guilty pleas for their involvement and are currently awaiting sentencing. Charges remain pending against other co-conspirators, including Weinstein, Aryeh “Ari” Bromberg, Joel Wittels, and Shlomo Erez.
Eli Weinstein had previously been sentenced to 24 years in prison for his fraudulent activities, which caused a substantial financial loss to his investors. However, his term was commuted to time served in January 2021 by the then-U.S. President after Weinstein had been incarcerated for less than eight years.
Post his release, Weinstein wasted no time and initiated a new scheme to defraud investors through a company named Optimus Investments Inc., where he operated under a pseudonym. Hattab played a crucial role as a broker for Optimus, ensuring Weinstein's involvement remained a secret.
Court documents indicate that between February 2022 and July 2023, Hattab and his associates solicited funds from investors for fictitious business ventures. Hattab confessed his awareness of Weinstein's malpractices and admitted to misleading investors by withholding crucial information.
The conspiracy charge against Hattab carries a potential sentence of 20 years in prison and a fine of $5 million. His sentencing is slated for March 20, 2024.
U.S. Attorney Sellinger expressed gratitude to the FBI and the Securities and Exchange Commission for their investigative efforts.
The charges against the remaining accused, Weinstein, Bromberg, Wittels, and Erez, are allegations, and their innocence is presumed unless proven guilty in a court of law.
