Dina Wein Reis

In October 2008, prosecutors claimed that, over a 15 year period,[3] Wein Reis's company had tricked manufacturers into selling her merchandise at a low price, defrauding them of tens of millions of dollars.[3] She and her associates would call company executives with an offer of a high-paying job.[3] Then, she would ask the executive to send her a shipment of merchandise, and she promised access to lucrative markets through her "National Distribution Program," which did not actually exist.[3] Instead of handing out samples for free as stated, she would sell the products to middlemen who then sold them to retailers, in a practice known as product diversion.[3] Diversion is not necessarily illegal (see Quality King v. L'anza), but in Wein Reis's case, she was charged on 6 counts for procuring the merchandise through fraud.[4]

On May 19, 2011, Wein Reis pleaded guilty to conspiracy to commit wire fraud.[1] In a reported plea deal with federal prosecutors, Wein Reis agreed to pay $7 million in restitution to her victims and would serve approximately 31 months out of possible 5-year sentence in federal prison.[1]

Wein Reis' criminal activities supported extensive aspects of her personal life. While perpetrating her multi-million fraud, Wein Reis used some of the criminal proceeds to finance stage and television productions,[5][6] fund philanthropic deeds, and purchase millions of dollars worth of art for her home.[2] She hosted fund raising parties for such institutions as the Whitney Museum of American Art.[3] In 2008, before pleading guilty to her criminal activities, while her lawyers were working to get her released on bond (set at $10 million), they submitted many letters of support, including one from Barbara Haskell, curator of the Whitney Museum.[7]