Disguised Money in Cloak of Donations? – $1,182,550 and Utrecht Ave

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MURRAY, WHAT HAPPENED TO $1,182,550 AND WHAT EXACTLY IS GOING ON AT 5227 NEW UTRECHT AVENUE?

Hat tip to our contributor… July 3, 2016

 

When we think of charitable donations, we think of altruism, generosity, aid to those most needy. It would seem that not everyone thinks the way we do. And sometimes, our skepticism when unchecked finds its way to some pretty interesting developments.

When we started to review some of the documents coming out of our many Huberfeld “charitable” donations, we found the curious case of 5227 New Utrecht Avenue and $1,182,550 which appears to have been donated to the Middle East and the US at the same time.

There were a number of inconsistencies in 990 filings related to that address, payments to directors of different charities, etc. The key to the questions that follow and to this entire post is the money that flowed  at the New Utrecht Avenue address and two somewhat incestuous charities, American Friends of Yeshiva D’Mir and Torah Support Fund.

For your leisure reading, please proceed… popcorn might be useful!

5227 NEW UTRECHT AVENUE:

5227 New Utrecht Avenue is an address with at least two charitable organizations registered (and we use the term “charitable” very generously here). The organizations are American Friends of Yeshiva D’Mir and the Torah Support Fund. There is some irony in the torah needing the support on this one but we are not touching that with a ten-foot-pole. There is a special place in hell for people who claim to want to support the Torah and steal that money instead (or launder it?)…

First we noticed the following:

Torah Support Fund Inc. is a Jewish Religious Organization in Brooklyn, New York. In 2013, it received its exempt organization status from the IRS and now brings in $1.01M in annual income, primarily through contributions. It appears that money is “donated” to Torah Support Fund from American Friends of Yeshiva D’Mir and used rather liberally.

AMERICAN FRIENDS OF YESHIVA D’MIR:

In Care of: Chanoch Herskowitz
Address:
5227 New Utrecht Ave
Brooklyn, NY 11219-3829

NEW UTRECHT LLC/NEW UTRECHT REALTY LLC:

The 5227 New Utrecht address is shown (per ACRIS) to be owned by 5225 New Utrecht LLC

The “managing member’ of 5225 New Utrecht LLC is Nachman Stern and Utrecht Realty LLC-“managing member” Marvin Friedman.

In 2013 The American Friends of Yeshiva D’Mir paid some fairly significant salaries to their Officers/Directors.

Directors/Officers Garbacz/Aryeh/Hershokowitz/Grunwald totaling:

$593,970 itemized in the following 990 link from 2013 :

http://pdfs.citizenaudit.org/2014_12_EO/13-2946608_990_201312.pdf

We might comment that these salaries are rather high but some might argue that they are in line with those of other Jewish organizations. Rather than debate the finer points of directors’  salaries in he Jewish world, we will leave you to your imagination on our response. [The salaries were inordinately high and perhaps people were being paid for silence!]

BUT THAT’S NOT WHAT WE FOUND CURIOUS – GRANTS TO ORGANIZATIONS IN THE US:

Under the heading “grants to organizations in the US” apparently, American Friends of Yeshiva D’Mir donated money to Torah Support Fund. [Reminder the two organizations share the same address].

In 2012-the Torah Support Fund received $532,000 in grants.

In 2013 that number more than doubled:$1,182,500

http://nonprofits.findthecompany.com/l/2122631/Torah-Support-Fund-Inc

FYE Dec-12 FYE Dec-13 % Ch.
Total Income $532,000/ $1,182,500    122.27%

Total Contributions $532,000/ $1,182,500    122.27%

Total Expenses $484,932/ $1,229,405     153.52%

Total Assets $47,068 $163     -99.65%

What is quite interesting from our perspective is why the expenses tripled from one year to the next. This corresponded fairly closely to the need for funds from 2012 to 2013 for Platinum and its many “event-driven” portfolios of investments.

The assets of Torah Support Fund diminished by nearly 100%. We are rather baffled by why that would be when the contributions increased so significantly.

DID THE 1,182,500 END UP IN THE MIDDLE EAST OR IN THE US?

On further inquiry a review of the 990 looked up the 2013 ” organizations in the US”

Per the following link:
http://990s.foundationcenter.org/990_pdf_archive/454/454558604/454558604_201312_990.pdf

$1,214,950 is the total in the above report and seems not to have been used for “grants to organizations in the US” ( $1,182,550-below).

Then when one looks up the Torah Support Fund’s 990 we found that there is a donation for $1,214,950 to the Middle East”. So, was the money donated for the US or the Middle East?

The same held true of the $1,182,550 number, donated to the US and to the Middle East.

Wo we leave you with the following questions:

Were the organizations de facto laundry services, allowing money to be transferred between two entities and then transferred out? We were unable to find a recipient for that money and where the trail ultimately ended. The same “charitable” tax-exempt religious entities seems to be flowing money back and forth between them at that New Utrecht Avenue address without the money trail really ending anywhere. We would argue that Huberfled used that money (cloaked as donations) to filter out both the finances and the assets to personal endeavors, but that is just speculations. We are still following the path.

Overview
Income
$1.01MILLION
Assets
$21,218

Income YoY % Change
-14.84%

Asset YoY % Change
12,917%

Percent changes shown are from 2013 to 2014.

Financial Summary

With $1.01M in income, Torah Support Fund Inc. is larger than the average Jewish Religious Organization in the United States (where median income is $205,171).

The average Jewish Religious Organization brought in 4.46% more income in 2014 than they did in 2013.

This organization, however, saw a 14.84% decrease in income in 2014.
IRS Information
Torah Support Fund Inc. is a registered tax-exempt organization with the IRS.

The organization was required to file a Form 990 or 990EZ with the IRS for the most recent tax year.

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