Tuesday, August 04, 2009

Mobster Family Feud

It's bad enough being a MOT with what Bernie Madoff did
from lawfuel
LOS ANGELES – The Grand Rabbi of Spinka, a religious group within Orthodox Judaism, pleaded guilty this morning to a criminal conspiracy charge, admitting that he worked with others to obstruct the Internal Revenue Service by soliciting charitable donations with secret promises to refund donors the vast majority of the money they “donated.”
Grand Rabbi Naftali Tzi Weisz, 61, of Brooklyn, New York, pleaded guilty to the felony charge before United States District Judge John F. Walter. The conspiracy had two objects: to obstruct the IRS and to operate an unlicensed money transmitting business. Weisz, several associates and five charitable organizations associated with Spinka were indicted by a federal grand jury in late 2007 in a scheme in which Weisz and his assistant solicited millions of dollars of contributions to the Spinka organizations by promising to secretly refund up to 95 percent of the contributions. In this manner, the contributors could claim as tax deductions the full amounts of their contributions, while actually having contributed as little as 5 percent of the amount they would declare on their federal income tax returns.
Weisz’s assistant, Gabbai Moshe E. Zigelman, 62, also of Brooklyn, pleaded guilty in June 2008 to conspiring with Weisz and has been sentenced to two years in federal According to court documents, Weisz and Zigelman surreptitiously refunded up to 95 percent of the contributions through several methods. In some cases, the contributors received cash payments through an underground money transfer
network involving various parties, some of whom operated businesses in and around the Los Angeles jewelry district. Yaacov Zeivald, 44, of Valley Village, California; Yosef Nachum Naiman, 57, of Los Angeles; Alan Jay Friedman, 45, of Los Angeles; and Moshe Arie Lazar, 62, of Los Angeles, have entered into plea agreements in which they admit their roles in the illegal money transfer network.

These four defendants are scheduled to plead guilty this afternoon.
A second method used to reimburse contributors was wire transfers from
Spinka-controlled entities into accounts secretly held at a bank in Israel. The accounts were established with the assistance of an international accounts manager at the bank, Joseph Roth, who previously pleaded guilty in the scheme.

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