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3 face charges in NJ of defrauding investor

Local News | May 15, 2013

3 face charges in NJ of defrauding investor

NEWARK, N.J. (AP) — Federal prosecutors say two New Jersey men and a New York City resident stole more than $6.5 million from an investor by claiming they had special access to Facebook shares before the company went public.

Prosecutors say 63-year-old Aaron Muschel of Brooklyn and 47-year-old Alex Schleider and 37-year-old Eliyahu Weinstein, both of Lakewood, are charged with stealing approximately $6.7 million from the investor.

Weinstein pleaded guilty in January to money laundering and wire fraud conspiracy after admitting his role in what authorities say was a $200 million real estate fraud scheme. He faces up to 25 years in prison on those charges.

The three men appeared in federal court Tuesday. Weinstein was ordered held, while Schleider was released on $1 million bond. Muschel was released on bail secured by property.