Weinstein also used a portion of the fraud’s proceeds to fund “charitable and religious contributions,” in the Haredi community. With names like Joy for Our Youth, and Kars 4 Kids, Weinstein was able to use the charities for three important purposes in his schemes:
– to launder funds;
– to enhance his reputation in the community, increasing trust among his victims,
– to leverage rabbis and community leaders to introduce him to new victims
According to the 45-count federal indictment brought by the FBI in August, 2010, Weinstein used 69 Jewish charities to launder at least $140 million.
In one case a victim, Florida investor Harvey Wolinetz, who invested a total of $79 million with Weinstein in several real estate deals, received a payment of $320,000 from Kars 4 Kids, Weinstein’s charity.