Attorney and “Rabbi” Shimon Rosenfeld got sentenced back in April of this year to 6 months in Otisville for his crime of bilking friends and investors of his real estate scam in the amount of $6.8 million. Shimon self surrendered himself to the custody of Otisville prison on May 13, 2022. Rosenfeld is already out of Otisville, long before the six months he was supposed to serve. There is no listing of Rosenfeld on the Federal inmate website.
Rosenfeld submitted reports from doctors that diagnosed him with a severe gambling addiction. Rosenfeld miraculously raised $2.8 million in cash from members of his Crown Heights community and a promise to pay the rest out of commissions he will be earning from Greystone Capital, run by Stephen Rosenberg, who has agreed to pay off his restitution if he fails to make good on the balance. Stephen Rosenberg told the government that he hired Shimon to work for him at a base salary of $115K a year, plus commissions, as a loan originator at Greystone. Rosenberg offered to pay the victims $600K a year out of his own pocket until the restitution is paid if Shimon can’t make the $600K a year payments.
Rosenfeld took close to seven million dollars from investors and blew it on risky stock trading. If you mention Rosenfeld’s name in Crown Heights you will hear numerous stories about how he scammed members of his own community with bogus investments. He scammed most members of his own shul. I heard from members of the Crown Heights community that he stole double the figure he got indicted for. Many victims of such crimes are too embarrassed to come forward, especially wealthy individuals who can absorb the loss.
In July of 2022 Rosenberg paid the government $5,997,525.00 towards Rosenfeld’s restitution. Rosenberg also paid $1,104,353.00 towards prejudgment interest, forfeiture and restitution. Rosenberg paid Rosenfeld’s debt in full and didn’t do the installment plan and pay it off over time as he originally proposed to the Government. Its not clear if Rosenfeld is even working for Greystone, as a search on Greystone’s website does not reveal any employee named Shimon Rosenfeld.
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