BLASPHEMY IN $$ 'SCAM'
By REUVEN FENTON, JEANE MacINTOSH and CHUCK BENNETT
Last updated: 3:13 am
July 25, 2009
Posted: 2:40 am
July 25, 2009
The religious talk by a crew of allegedly crooked rabbis was anything but kosher.
The rabbis and other prominent Jews captured in this week's FBI sting operation referred to money laundering as Talmudic study sessions while hiding their illicit transactions in a web of religious charities, according to the federal criminal indictments that have rocked the Jewish communities of New Jersey and Brooklyn.
Evidence collected against the rabbis show they allegedly used the code word "gemora," the Hebrew word for the Jewish holy books of the Talmud, when referring to cash.
"I'm bringing, uh, 55 gemoras, and then I'll see you," undercover FBI operative Solomon Dwek told Brooklyn Rabbi Mordchai Fish when he wanted to launder a $55,000 check.
Fish, who teaches Torah classes at the Sheves Achim synagogue in Borough Park and runs several nonprofits, replied, "When do you want to learn?" -- the code for what time should the transaction go down.
Those exchanges were all captured on audio by Dwek, a real-estate developer accused of bank fraud who became an FBI informant.
They were laid out in painstaking detail among the 44 criminal complaints against rabbis, businessmen and New Jersey elected officials who were arrested Thursday as part of a massive, two-pronged corruption probe.
Throughout the three-year sting, approximately $3 million was laundered by the rabbis, according to prosecutors. The probe led to the separate investigation into New Jersey political corruption.
The rabbis and prominent members of the Jewish community used gemachs, organizations that traditionally provide no-interest loans for weddings or schooling, to transfer illicit money, prosecutors said.
For example, New Jersey developer Moshe "Michael" Altman used his Gemach Shefa Chaim as a front, prosecutors allege. He was allegedly caught on tape directing Dwek to cut a check to his gemach for $75,000.
Altman deposited the check, took a commission, and returned $63,750 in cash to Dwek, according the complaint.
The feds began the money-laundering probe a decade ago, prosecutors said, but began making real progress after they flipped Dwek, who was busted in 2006 for trying to scam PNC Bank out of $50 million.
Other money allegedly was funneled through Saul Kassin, the 87-year-old chief rabbi of the Sheepshead Bay synagogue Sharee Zion and head of the $6 million nonprofit Magen Israel Society.
He partnered with Rabbi Eliahu Ben Haim, leader of the Congregation Ohel Yaacob in Deal, NJ. Ben Haim used the Friends of Yachave Da'at and his synagogue's charity to launder millions, the complaint says.
Once a check was deposited with his charity, which he recorded as "anonymous donations," Ben Haim either paid Dwek himself -- out of cash he stored in a Mighty Morphin' Power Rangers box -- or had an Israeli contact send money.
Additional reporting by Liz Sadler