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How To Deal With Needy Investors Demanding Their Money Back

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Yesterday afternoon, Lakewood real estate developer Eliyahu Weinstein was charged with “masterminding” a $200 million scam to defraud investors, starting in September 2005. Along with Vladimir Siforov, Weinstein target Orthodox Jews in his community, “exploiting social and business customs.” And while theirs is not a business model you probably want to aspire to, there is at least one helpful thing to take away from the charges. Specifically, the ones cited in court documents vis-à-vis how Weinstein dealt with investors who wanted their money back. Even if you’re not running a scam, you probably still have to deal with the headache of clients getting all pissy when you have a down month or two, and when that happens, perhaps consider the following approach.

6. When victim-investors sought to collect their earnings, or at least recoup their investment from defendant WEINSTEIN, he reacted in different ways: at times he would ignore them; other times he would tell them their money was forthcoming, and then not pay; and on some occasions he would pay a smaller amount. In one example, a victim-investor’s representative went to defendant WEINSTEIN’s home and demanded to speak with defendant WEINSTEIN about the victim-investor’s investment. Defendant WEINSTEIN eventually came outside and asked the representative what the representative's wife and WEINSTEIN “have in common.” When the representative answered “I don’t know,” defendant WEINSTEIN replied “we both fucked you.”

Criminal Complaint [APP]


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In particular those from Moore Capital, JP Morgan Asset Management, and Epoch Investment Partners.