Abbe Edelman, 50, Livingston, New Jersey, was arrested at his home by federal law enforcement officers on charges that he allegedly ran a real estate investment scheme that bilked victims out of $4 million.
The defendant is charged by complaint with six counts of wire fraud. He is scheduled to make his initial court appearance before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the complaint:
Beginning in 2004, Edelman operated through several companies alleged to be in the business of buying and selling real estate. He allegedly engaged in a real estate investment fraud in which he obtained millions of dollars from victims who invested in his scheme. Edelman told investors that he had significant past real estate experience, including a purported history of successfully buying and selling numerous bank foreclosed properties, and an MBA degree from NYU in real estate finance. Edelman claimed that he had long standing relationships with banks that provided him with unique access to purchase foreclosed properties below market prices and, in fact, already had negotiated with the banks to purchase certain properties at agreed-upon prices that would guarantee an easy resale and profit for investors.
Edelman promised investors that any investment would be used solely for the purchase and renovation of specific investment properties in, among other places, New York, New Jersey, California, and Florida. Edelman represented to his investors that he could obtain extraordinary returns – as much as 25 percent – in as little as eight to 12 months. Edelman allegedly told some victims he had received from other investors, including professional athletes and celebrities, the majority of the capital needed to purchase the investment properties. He also said he provided cash deposits to the financial institutions to secure the right to purchase the investment properties and invested his own money in the deals.
In reality, neither Edelman nor any of his real estate companies had a history of purchasing any bank foreclosed properties. Edelman also did not possess even an undergraduate degree. He did not have any deals lined up involving any investment properties, did not have his own money invested in any such deals, and did not have any money from celebrity investors. Edelman induced investors to give him $4 million and used little, if any, of it to fund any real estate acquisitions or renovations, instead diverting the funds for his own use.
He allegedly used the funds for his home mortgage and day-to-day living expenses, such as restaurants, telephone, and gas bills, purchased merchandise from high-end retailers, such as Gucci and Neiman Marcus, repaid existing investors in Ponzi-scheme fashion and paid his legal expenses in connection with victims seeking repayment of their investment.
When investors later inquired about the status of their investments, Edelman offered additional misrepresentations, including emails sent from a fake email account he had created, falsely assuring investors that he and his company had closed on the foreclosed properties, sometimes telling them buyers for the properties already had been identified.
In some cases, to allow the scheme to continue undetected, Edelman made “lulling” payments to investors, ranging from $100 to tens of thousands of dollars, to permit the scheme to continue. When payments were made to any investors, Edelman generally represented that the money was from the sale of investment properties, when, in fact, it came from a new investor.
The wire fraud counts with which he is charged each carry a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Paul J. Fishman announced the charges.
U.S. Attorney Fishman credited criminal investigators with the U.S. Attorney’s Office and postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates, with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky of the Economic Crimes Unit and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.
It’s Business As Jewsual!!!! They sing “I’m a Jew and I fooled you, I stole all your money that’s how you got screwed!!!!!” The Talmud teaches to lie and cheat the Gentiles, exactly what is happening here. There’s a long list of Jewish crooks all over the world. It’s called Swindler’s List. America is the same as what Germany was before WW2, we have corrupt Jewish politicians stealing U.S. tax dollars, the Federal Jewish Reserve bank that prints money and gives it the their Jewish mafia around the world. Jews raise property taxes on the poor Gentile middle class so that Jewish teachers can make more money than your doctor, lawyer and Engineers and when they retire you pay their tabs as well with pension. In an October 2010 sermon, Rabbi Yosef stated that “The sole purpose of non-Jews is to serve Jews”. He said that Gentiles served a divine purpose: “Why are Gentiles needed? They will work, they will plow, they will reap. We will sit like an effendi and eat. That is why Gentiles were created.” How evil this statement was made by a Jew religious supremacist thug. Jews also create wars so that they can profit from wars. They control the military and congress. How do Jews succeed? By simply cheating the non Jews AKA Gentiles Goyim. Who are the “Synagogue of Satan” according to the bible: Jews. Who are children of the Devil’s, Jews. With Jews you lose………….everything. The real holocaust was by the communist Russian Thug Jews called Bolsheviks, they killed more than 66 million Christians in Russia and they want you to pay tribute and more taxes for Jews in their Holocaust which was never proven that 6 million died. They can call it propaganda but I call it the truth!! Don’t let liars, deceivers take advantage of you and your family, it’s time to fight back and let the truth out.
It’s Business As Jewsual!!!! They sing “I’m a Jew and I fooled you, I stole all your money that’s how you got screwed!!!!!” The Talmud teaches to lie and cheat the Gentiles, exactly what is happening here. There’s a long list of Jewish crooks all over the world. It’s called Swindler’s List. America is the same as what Germany was before WW2, we have corrupt Jewish politicians stealing U.S. tax dollars, the Federal Jewish Reserve bank that prints money and gives it the their Jewish mafia around the world. Jews raise property taxes on the poor Gentile middle class so that Jewish teachers can make more money than your doctor, lawyer and Engineers and when they retire you pay their tabs as well with pension. In an October 2010 sermon, Rabbi Yosef stated that “The sole purpose of non-Jews is to serve Jews”. He said that Gentiles served a divine purpose: “Why are Gentiles needed? They will work, they will plow, they will reap. We will sit like an effendi and eat. That is why Gentiles were created.” How evil this statement was made by a Jew religious supremacist thug. Jews also create wars so that they can profit from wars. They control the military and congress. How do Jews succeed? By simply cheating the non Jews AKA Gentiles Goyim. Who are the “Synagogue of Satan” according to the bible: Jews. Who are children of the Devil’s, Jews. With Jews you lose………….Everything. They can call it propaganda but I call it the truth!!