KeyBank Sues KJ, NY Religious Charity for Alleged 950K Chargeback Scheme

KeyBank sues Kiryas Joel religious charity in $950K credit card chargeback scheme

KeyBank has sued a Hudson Valley religious charity and a co-founder for allegedly running a $950,000 credit card chargeback scheme.

KeyBank of Cleveland sued Mordechai Gold and BHMD BY on Chevron Inc., of Kiryas Joel, Orange County, Dec. 16 in White Plains federal court.

“KeyBank seeks to prevent the fraudulent transfer or dissipation of assets, including those assets that they have already tried to put beyond the reach of KeyBank,” the lawsuit states.

Gold responded in a court filing that the allegations are a “complete fabrication.”

The bank “has attempted to dress up its contract claim as being an elaborate fraud involving over 40 conspirators,” he stated, “yet KeyBank has proffered no evidence of fraud.”

Gold, 26, Yoel Shtosel and Joel Fekete set up BHMD BY on Chevron in 2015 to establish a place of worship, Bnai Yisroel, on Chevron Road, according to the incorporation papers, and to “support the spiritual needs of the community with providing free loans and to support the religious, intellectual, moral and social welfare among them.”

Shtosel and Fekete are not named in the complaint.

BHMD opened a settlement account with KeyBank in March for handling credit card transactions. Fiserv, a vendor working for the bank, processed credit and debit card charges for BHMD merchandise bought by cardholders, collected funds from the credit card banks and paid the merchants.

From April to early September, about $984,000 was deposited in the Keybank settlement account. During the same period, Gold transferred about $950,500 out of the account.

The transactions include $22,308 in cash withdrawals, $41,150 wired to a family trust, $84,000 wired to a member of Gold’s family and $533,996 transferred to Gold and BHMD accounts at NorthEast Community Bank.

Fiserv became suspicious and opened an investigation. BHMD was repeatedly charging the same, even-amount for transactions on high-reward credit cards. When the vendor questioned Gold, he said BHMD had been taking advance orders for Hebrew texts. Fiserv pressed for details, the complaint states, but Gold could not provide them.

Fiserv concluded that Gold and BHMD had colluded with customers to process fraudulent credit card transactions, collect the credit card rewards and steal the funds.

“BHMD and Gold then transferred the fruits of the fraud into outside bank accounts and took cash withdrawals,” according to the complaint.

Fiserv referred its findings to the FBI.

After KeyBank closed the settlement account in September, there was an enormous spike in chargebacks. Customers demanded refunds, claiming that the amounts of the transactions were incorrect, they didn’t recognize the transactions or the goods were not provided.

By mid-December, the chargebacks totaled $630,400, and KeyBank expects the number to surpass $950,000.

KeyBank had processed credit card transactions that resulted in $984,000 in deposits to the settlement account, “even though no actual goods or services were sold or delivered,” the complaint states. Then Gold and BHMD “plundered” $950,500.

The settlement account had insufficient funds for refunding the credit card banks, so KeyBank had to pay them.

Gold states in his declaration that BHMD functions as a charitable institution, raising money from contributors that it distributes to “needy families to help cover their costs (of) yeshiva, holidays, weddings and basic needs.”

BHMD had been offered a large supply of religious books and bookcases, he says, that it used as incentives to encourage donors to contribute $990,000 to his organization. But the supplier failed to deliver the items and BHMD was unable to honor its incentives.

“This resulted in a massive business failure in which over 40 contributors, disgruntled over the failure of BHMD to supply the promised items, issued chargebacks for their contributions.”

Gold said BHMD was unable to cover the chargebacks because it had immediately distributed the contributions to “needy recipients.”

The bank accuses Gold and BHMD of breach of contract and fraud. It is asking for a court to order to preserve all assets and for judgments for damages and enforcement of a personal guaranty Gold signed when he opened the settlement account.

KeyBank is represented by Manhattan attorneys Emily J. Mathieu and Brian K. Steinwascher. BHMD and Gold are represented by Richard M. Mortner of Manhattan.

To see the article on its original forum click here.

UOJ and Live Podcast with Luke Ford

https://www.youtube.com/lukeisback?fbclid=IwAR3w4zHufSPcsb6TDXTTSdN5QzaGDKIWOUawWpi2ZIMLLuHnn_117g1esWc

Tuesday, December 31, 2019

I Will Be On A Live Podcast With Luke Ford — This Coming Sunday January 5, 2020 at 9 PM EST. You Are Invited To Participate In The Discussion!

https://lukeford.net/

https://www.youtube.com/lukeisback?fbclid=IwAR3w4zHufSPcsb6TDXTTSdN5QzaGDKIWOUawWpi2ZIMLLuHnn_117g1esWc

To Temper Justice With Mercy… To Avoid Unintended Consequences

 

Thank G-d for the United States….

Thank you to the Mukatcher Rebbe for your voice of reason, thanking G-d for our United States.Please accept these comments with respect:

RLUIPA is a land use act that offers great power and should not be wielded lightly. With that power should come great responsibility. With that should come a self-policing against corrupt land-use practices, which are indeed the source of fights in Monsey, New York and Lakewood, New Jersey. It is not about religion. It is not about anti-Semitism. It is about over-crowding a country landscape and responsible distribution of public utilities.

The First Step Act is a prison reform act that too offers great power. It is intended to be merciful. But the unintended consequences of that mercy is the power of rapists to get information about their victims. Please, be merciful on your use public power. Mr. Nadler, please understand that one day, you might be responsible for the harm committed by those to whom you should an over-abundance of mercy.

All stated with great respect in an effort toward civil discourse.

LM

Is Accountability Anti-Semitism or are Some of these Organizations Actually for Profit and Shielded By Exemptions?

How Many Tax Exempt Organizations are There in Rockland County, New York Zip Code 10952, and Neighboring Towns? How Many Are Actually For-Profit Entities Pretending to be What they are Not… Charitable… Can you Distinguish? Is there Oversight?

https://www.taxexemptworld.com/organizations/monsey_ny_10952.asp?spg=2

We are not suggesting that every entity on the below list is questionable or not exactly and precisely what it purports to be. We are not disparaging any of them. We are holding the opinion that they should ALL be under heavy and strict oversight.

With a rise in anti-Semitism, or the labeling of any scrutiny as such, and the seemingly misguided need for well-respected Jewish organizations to defend the activities of other Jews at all costs, we have a little game for you.

We have posted a list, one of many, of tax exempt organizations in the Rockland County, New York area. Some of the organizations on that list are legitimate and should be deemed as such. However, also on that list are synagogues in private homes (tax exempt, of course), for-profit retail organizations listed as tax exempt, for profit healthcare agencies listed as “charitable” and list goes on.

Of the following, we would argue that perhaps one-third are legitimately registered or legally situated (i.e. not synagogues in private homes or retail stores claiming tax exempt status).

We challenge those members of Jewish organiztions who have found the need to ally themselves with otherwise unsavory members of the Hasidic Jewish community, who has criticized anyone who speaks out against the bad behavior of our fellow “Achim” to review the associated 990’s and to see for yourselves.

Where are the Ramapo, NY Building Inspectors and Code Enforcement Officers? 101 Maple Ave, Monsey

MS. JAMES INVOLVEMENT IN DEVELOPMENT LAWSUITS IS MISGUIDED. THE ISSUE IS THE APPLICATION OF BUILDING CODES, NOT WHETHER OR NOT A POPULATION CAN OR CANNOT LIVE THERE.

The Forward in an article entitled “Is it Anti-Semitism, or NIMBYism? Lawsuits Multiply with Growing Orthodox Population” are quick to excoriate criticism of the law abiding population against over-development. The article is quick to ignore the the lax building code enforcement and building inspections in Monsey, New York, Ramapo, New York, Rockland County, New York, Lakewood, New Jersey, Jackson Township, New Jersey, people are breaking laws. This is not about anti-Semitisim. This is about accountability.

While people like our New York State Attorney General Tish James are jumping on the bandwagon of RLUIPA and claiming that any review of development in the above-referenced areas is actually anti-Semitism, few are out there defending the law abiding citizens of the respective counties.  Ms. James, isn’t defending against lawlessness actually in your job description?

The lawsuits, as noted by the Forward are filed on claims that RLUIPA which one might think exempts developers from following the laws of the land where they are trying to build. Our elected officials seem to be buying into this argument. I wonder if those same elected officials would be taking an equally zealous position if the developers were black, Hispanic or Muslim and trying to build for black tenants, Hispanic tenants or Muslim tenants. We think not.

As quoted by the Forward:

The lawsuit the developers filed last year was among a spate of similar cases in which Orthodox groups claim cities and towns in the New York area are being anti-Semitic in thwarting their plans for housing, schools and synagogues large and small. The suits are based on the Religious Land Use and Institutionalized Persons Act, a law known as RLUIPA that since its enactment in 2000 has helped religious groups including small Buddhist temples and evangelical mega-churches combat opposition to development projects

…..

On Thursday, New York Attorney General Letitia James filed a motion to intervene in a long-running suit in which Hasidic developers have accused a town in Orange County of anti-Semitic intent in blocking their attempts to build hundreds of homes. The developers have filed suits at both a state court and in federal court.

“Blocking the construction of homes to prevent a religious group from living in a community is flat out discriminatory,” James said in a press release.

Housing intended solely for one particular community, while that community builds without obtaining permits and then greases the palms of code enforcers, is accepted as “protected by RLUIPA” but in reality, any building of any structures has certain codes that must be enforced. Law abiding citizens are saying, “The codes are not being enforced, corners are being cut and everyone is in danger and we want no part of it.”

Falling back on religious land use and the anti-Semitism moniker is an excuse to allow lawlessness. Ms. James, your comments above are a tacit approval of the brazen abuse of process that is occurring as those developers are trying to build. This is not about development, it is about planning, enforcement and responsibility. We hope you, Ms. James, will accept responsibility when 15 children are living in an illegal basement, rented by a second family and are killed in a fire because fire codes were not adhered to. Similar tragedies have happened in the past and will undoubtedly happen again, particularly when no planning is in place for fire hydrants, appropriately supplied fire departments and no one is properly inspecting the buildings.

1 Maple Avenue in Monsey, New York is one such example. At that location, a house was converted into a shul (synagogue) with no filing or approval of permits in an area zoned residential. Complaints to the building department went wholly unanswered. Calls to inspectors were not returned. And, when finally a stop order was placed on the location, the stop order was brazenly violated.

Ms. James, do you view this as acceptable?

To Ms. James, to Governor Cuomo, to Governor Phil Murphy we implore upon you to set aside the mantra that every effort at stopping lawless development by any community is anti-Semitism. There should be no one group that is above the law. And, the expectation of law-abiding citizens is that you will protect us all, from whatever the threat to the laws of our land.  

Just One Example Of The Ongoing Lawlessness In Ramapo!

As one commentator to this post observed: “If no one is following rules I’m afraid soon vigilantes will appear in that neighborhood.”

That is the great danger all citizens face in ANY community regardless of race or religion where the government refuses to enforce law and order and one group does not follow accepted norms of legal behavior. Anarchy will follow accompanied by vigilantism.

That is too terrible a danger to be cavalierly ignored!

+5

Rise Up Ocean County

December 9 at 7:38 AM · 

 

Attention Ramapo Township Building Inspectors/Code Enforcement:

Over the weekend, while you were not working, we were. That STOP WORK ORDER that you put on 101 West Maple Avenue in Monsey was violated both Saturday and Sunday. This is the house turned synagogue, without a change of use or building permits, that was building a mikvah in the basement, without permits…in case you needed a refresher. Kindly take a few minutes and visit again today.

Blessings for a beautiful Monday all, lots to do today.

#SameShitDifferentCounty
#OnlyFoolsFollowTheRules
#MakingHashemProud
#DidYouPermitThis
#OneCounty2020

Rabbi Yaakov Bleich Denies Moving $100 Million Through Lithuanian Bank

via Rabbi Yaakov Bleich Denies Moving $100 Million Through Lithuanian Bank

Glencore and Bribery – Gertler, and Speculation Re: an Attorney’s Activities in Ukraine

REFILE-UPDATE 2-Britain’s fraud office opens investigation into Glencore

Dec 5 (Reuters) – Britain’s Serious Fraud Office (SFO) has launched an investigation into Glencore concerning “suspicions of bribery,” the company said on Thursday.

Glencore, one of the world’s biggest commodity traders, is already subject to a U.S. Department of Justice enquiry in connection with corruption in Democratic Republic of Congo, Venezuela and Nigeria.

The SFO confirmed https://www.sfo.gov.uk/2019/12/05/sfo-confirms-investigation-into-suspected-bribery-at-glencore-group-of-companies it was investigating the conduct of business by the Glencore group of companies, its officials, employees, agents and associated persons, but said it could not comment further on a live investigation.

Glencore has said it will cooperate with the investigation.

The company’s shares dropped 6% to 223.9 pence following the announcement, pushing it to the bottom of London’s blue-chip index.

Over the course of this year, Glencore’s shares have fallen more than 20%, pressured by broader concerns about safety and sustainability in Democratic Republic of Congo.

CEO Ivan Glasenberg told investors earlier this week he expected to step down next year once a new management team is in place. (Reporting by Yadarisa Shabong in Bengaluru; Alistair Smout, Julia Payne and Barbara Lewis in London; Editing by Rashmi Aich and Jane Merriman)