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Tuesday, December 21, 2010

New lawyer for Lakewood developer accused in Ponzi scheme


















Accused Ponzi-schemer Eliyahu Weinstein has a new lawyer, this one supplied by the government.

Hackensack attorney William J. Hunt was assigned to Weinstein's case at a Dec. 9 court hearing. U.S. Magistrate Court Judge Esther Salas at that hearing also relieved Weinstein's first attorney, Ephraim Savitt, of his duties.

Weinstein, a Lakewood developer, was charged in federal court in August with masterminding a $200 million Ponzi scheme. A co-defendant, Vladimir Siforov, remains at large.

Savitt twice requested to be relieved of his duties as Weinstein's attorney because he was not being paid. Weinstein had until Dec. 6 to secure Savitt, hire another attorney, have one appointed or act as his own lawyer.

The U.S. Attorney's Office noted in an 18-page memo to Salas on Dec. 8 that another lawyer had notified the government that while "Weinstein might retain the attorney's firm, a sticking point appears to be payment of a sufficient retainer and that firm to the government's knowledge has not been retained

Weinstein, who has also been sued in civil court for nearly $300 million, had a habit during those proceedings to frequently change attorneys, thereby delaying action on the cases. The U.S. Attorney's Office in an Oct. 22 letter to the judge noted that, saying that "Mr. Savitt is only the latest of a long list of lawyers that defendant Weinstein has retained in some capacity or another in various allegations of fraud."

Anticipating that Weinstein may try to appear pro se and set up a potential appeal if he is convicted, Assistant U.S. Attorneys Mark Coyne and Zach Intrater's Dec. 8 memo included a suggested method to follow to ensure that Weinstein would have entered that decision purposefully.

"Requiring the defendant to make an explicit choice protects against manipulation by the defendant of the mutually exclusive rights to counsel and self-representation," the two said in their memo.

The case has been continued until Jan. 17 to give both sides time to negotiate a plea.

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