Shlomo Erez, a 56-year-old man from Israel, has pleaded guilty to multiple charges in connection with a $35 million Ponzi scheme, alongside Eliyahu “Eli” Weinstein, a notorious Ponzi schemer who was released from prison early by former President Donald Trump in 2021.
Erez admitted to conspiracy charges involving securities fraud, money laundering, and obstruction of justice in federal court in Trenton, New Jersey. According to the U.S. Attorney’s Office for the District of New Jersey, Erez assisted Weinstein while he was on supervised release, helping to conceal his identity and carrying out fraudulent activities.
The scheme deceived investors into believing their money would be used to purchase COVID-19 masks, first aid kits for the ongoing Russia-Ukraine conflict, and baby formula, which was in short supply due to global supply chain disruptions.
