Chaim Deutsch – Tax Fraud and Removal From City Council

New York City Councilman Chaim Deutsch councilman will have to pay restitution for unpaid taxes.
PHOTO: WILLIAM ALATRISTE/NEW YORK CITY COUNCIL

Posted to Lost Messiah 4.,28.21

For those of us who have been looking closely at Councilman Deutsch and his activities as a representative of the City council (both good and bad) in our opinion, it behooves the government to scrutinize Councilman Deutsch’s activities. One may want to look at the favoritism given, nay offered up, to certain people and communities. The same investigation that led to the guilty plea of Counselman Deutsch should not end here. It may be wise to start looking at each and every person with whom Councilman Deutsch did business, interacted, engaged with at clandestine meetings, and the resulting action on the part of the councilman. – LOSTMESSIAH

New York City Councilman Pleads Guilty to Tax Fraud

A New York City councilman pleaded guilty in Manhattan federal court to a misdemeanor tax-fraud charge for filing fraudulent information on income and expenses tied to his real-estate-management business, prosecutors said Thursday.

Chaim Deutsch, a Democrat who represents parts of Brooklyn, failed to pay $82,000 in taxes owed to the federal government between 2013 and 2015, according to a criminal complaint. Prosecutors in the U.S. attorney’s office for the Southern District of New York said he also falsely claimed personal expenses as business expenses.

Mr. Deutsch, 52 years old, was first elected in 2014 and for part of his time in office he was the sole owner of Chasa Management Inc., a real-estate-management business, prosecutors said.

The councilman faces up to a year in prison and will have to pay restitution for unpaid taxes, according to the U.S. attorney’s office.

The Wall Street Journal, to continue reading click here.

ADDITIONAL READING:

No Challah Today, a Poway Chabad Rabbi, Millions in Tax Evasion and Fraud, Since the 1980’s, and Chabad did not Know?

Department of Justice

U.S. Attorney’s Office

Southern District of California

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FOR IMMEDIATE RELEASE

Tuesday, July 14, 2020

Former Director of Chabad of Poway and Several Co Defendants Plead Guilty to Multi Million-Dollar Tax Evasion and Fraud

For Further Information, Contact:

Assistant U. S. Attorneys Emily W. Allen (619) 546-9738,
Andrew Young (619) 546-7981, and Oleksandra Johnson (619) 546-9769

 

SAN DIEGO – Rabbi Yisroel Goldstein, former director at Chabad of Poway, and five of his associates pleaded guilty in federal court today and Monday to fraud charges, admitting that they participated in a complex, years-long, multi-million dollar tax-evasion scheme and other financial deceptions involving theft of public money.

According to his plea agreement, while Rabbi Goldstein was director of the Poway synagogue, he received at least $6.2 million in phony contributions to the Chabad and affiliated charities and secretly refunded up to 90 percent of the donations to the “donors.” After Rabbi Goldstein provided these donors with fake receipts, they illegally claimed huge tax deductions for these nonexistent donations, and the rabbi kept about 10 percent – more than half a million dollars over the course of the fraud – for himself. Tax losses to the IRS were more than $1.5 million. At least 20 taxpayers were involved in this and related tax-evasion schemes.

This case was under investigation for more than two years before Rabbi Goldstein was shot and wounded during the April 27, 2019 attack on worshippers at the Chabad. In that case, federal civil rights and hate crimes charges are pending against John T. Earnest of Rancho Peñasquitos.

The rabbi was aware of the investigation at the time of the shooting. FBI and IRS agents had searched his home in October of 2018, and he began cooperating with the investigation shortly after that time.

According to his plea agreement, Rabbi Goldstein has agreed to cooperate with ongoing investigations of uncharged co-conspirators and to forfeit $1 million in proceeds and pay restitution of $2.5 million.

“This case has brought us all a great deal of anguish because of the attack on Chabad of Poway,” said U.S. Attorney Robert Brewer. “But whatever a defendant’s dire personal circumstances, or stature in the community, we will always seek justice, first and foremost. We cannot, and will not, sweep serious criminal conduct under the rug. We cannot look the other way because a perpetrator of crime has suddenly become a victim of crime.”

“This case shows the FBI’s dedication to untangling the web of fraud in a complex, multi-million dollar charitable donation scheme that violated the trust of the Chabad of Poway and defrauded the United States government,” said FBI San Diego Acting Special Agent-in-Charge Omer Meisel. “The FBI is committed to holding those accountable who use their position and stature in the community as a disguise to commit fraud.  All the defendants in this case, including Rabbi Yisroel Goldstein, have admitted their guilt in these fraudulent schemes and will no longer be able to use deceit and lies to cheat those who were intended to receive charitable funds and taxpayer dollars.”

 

Another Case of Money Laundering and Fraud – Lakewood, NJ and School For Handicapped Children

Corruption Of Public Resources And Money Laundering By The Founder Of A School For Handicapped Children?

It is not surprising that such corruption exists and that money laundering is prevalent throughout the United States.

However it is amazing that such cases appear with frequency in communities that place great emphasis on religious studies and trying to understand God’s will for their lives.

In these same New Jersey communities we also have had numerous cases of welfare fraud.

For some amazing reason those responsible will not be required to repay 100% of what they stole as recent reports such as this one from the Asbury Park Press indicates ….

https://www.app.com/…/medicaid-fraud-lakewood-n…/1679615002/

Which raises a question as to why the public is expected to pay for that which was stolen from them and is there no longer equal justice for all and special justice for none?

The defense in this latest trial has now started. We await with interest to hear the case presented by the defense.

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Lakewood SCHI founder will make his defense in corruption trial

A Home… A House of Worship… A “Charity”? Lakewood, NJ Tax Exemptions, John Oliver Where are You?

RISE UP OCEAN COUNTY:

PROBLEM WITH TAX EXEMPT PROPERTIES AND THE DESTRUCTION OF SCHOOL DISTRICTS

Given that one of the main issues that our county faces is the growing number of tax-exempt properties, this screenshot came across our desks this morning. Toms River seems to be following in other town’s footsteps. 

1191 Hickory Street is a known place of worship. The residents know this, and the township knows this. Every Friday night to Sunday there are no less than 15-20 cars in the driveway and street during this time (and with a conservative average of 2 people per car that makes 30-40 people staying at this house EVERY single weekend). Also, several times during the week, we are told that they see dozens of individuals walking, driving, parking, getting out of the commuter van, and going into and out of this place of worship. Residents have called to complain about the dangerous conditions driving in this area with people walking in the middle of the streets, cars parked over the white lines, and the fact that 3-4 dozen people utilize this house as a motel/hotel every weekend. All of the resident’s concerns about this property, once again have fallen on deaf ears. As one resident has told us this morning, this is something they have become accustom to.

Based on their assessed value and other properties of similar assessed values, 1191 Hickory Street should be paying upwards of $16,500-$17,000 a year in property taxes. However, the state and the town have approved this property at 1191 Hickory Street, as a Church/Charitable. Which means at this moment, this property owner has a reduced tax bill. This is a 6 bedroom/3 bath house in North Dover with an assessed value of $755,500 and now after the most recent reduction this property currently will pay only $11,836.20 (based on last and this coming quarter’s amounts X 4) (so far), a reduction from the $16,500 – $17,000 they should be paying. But keep in mind chances are they will follow in the footsteps of 2302 Tapestry Court, another known place of worship, which originally had a similar reduction only to be fully tax exempt a short period of time later. This means this homeowner (2302 Tapestry Court) currently pays absolutely nothing in property taxes for an assessed value of a home and property of $646,400. This is due in part to the procedures within the state of New Jersey AND Toms River Township. While both blame the other, they are both to blame for allowing this.

The major problem we see with this type of recklessness is the tax-exempt properties of this magnitude, will further destroy an already deeply indebted Toms River School system with this loss of property tax revenue. This is only the second house of worship in this area to have a reduction or complete exemption, which we are sure that there are many to come. 

Since Lakewood seems to be the town with the most tax revenue/school/ bussing issues we looked further into the tax-exempt properties. What we found will be discussed in length at a future date but just to give you an insight to what we found, one organization has roughly $107,000,000 in assessed value property in Lakewood alone, of which $98,000,000 (approx.) is tax exempt. Based on the tax calculation description on http://www.lakewoodnj.gov/department/tax-collector, that is an approximate loss of tax revenue of $2,261,840 a year to the township of Lakewood for this ONE organization and its’ properties. 

So we leave you with this question, is it ok that these homes are given tax exemptions for organizations that are not even domiciled in this state, let alone this county?

Where are your Donations Going? Canadian Charities Getting Status Revoked… Do Not Give Blindly, Beth Oloth

Canadian Jewish group’s charity status revoked: Report

 

A Canadian Jewish organisation has been stripped of its charity status following a government audit which found it provided support to the Israeli armed forces, Canadian Global News has reported.

The Canadian Revenue Agency (CRA) found that Beth Oloth Charitable Organisation had been funding activities that aren’t charitable under Canadian law, including “increasing the efficiency and effectiveness of the Israeli armed forces”, the Global News website reported.

The Beth Oloth Charitable Organisation based in Toronto had been a registered charity since 1980 and was one of Canada‘s richest, with more than 60 million Canadian dollars ($45m) in revenues in 2017.

According to documents obtained by Global News, federal regulators found many problems, including funding projects totaling 1.2 million Canadian dollars ($905,000) in the occupied Palestinian territories, which it said violated Canada’s official policy on the Israeli-Palestinian conflict.

However, the portion listing the projects was blacked out by the CRA.

According to the CRA Charities Directorate, the organisation hadn’t issued tax receipts properly, lacked “direction and control” over the use of its funds.

Activities included funding educational programmes called mechinot that prepared high school students for Israeli military service, Global News reported.

The programmes provide weapons training, physical and martial arts training, mentoring by Israeli forces officers and visits to army bases and sites of historical battles, the CRA wrote.

Israel PM urged to expand illegal settlements ahead of election

The CRA released 94 pages of documents regarding the case on Friday following the announcement of the group’s charity status revocation on January 12.

Global News reported that Beth Oloth has received vast donations – 61 million Canadian dollars ($46,000,000) in 2017, 45 million Canadian dollars ($34m) in 2016 and 42 million Canadian dollars ($32m) in 2015, of which almost all its money went abroad.

The CRA said that Beth Oloth was acting as a “conduit” that issued tax receipts to donours in Canada in order to fund programmes of others.

Beth Oloth said it only funded teachers to provide religious training at mechinot schools and claimed they provided “stipends to the poor for the observance of religious life” which doesn’t interfere with Canada’s policy in the region, according to documents seen by Global News.

But the CRA rejected their explanation, the Canadian broadcaster reported.

“Providing assistance to Israeli settlements in the occupied territories serves to encourage and enhance the permanency of the infrastructure and settlements and therefore is contrary to Canada’s public policy and international law on this issue,” the agency wrote.

‘Era of impunity…coming to an end’

Toronto charity lawyer Mark Blumberg told Global News that reading the details of the case was “shocking” and the government should be embarrassed the charity was allowed to operate for so long.

“This is an example of the type of ‘efficient’ charity we don’t need in Canada. It is efficient at giving out tax receipts but not effective in making sure that the 200 million Canadian dollars ($151m) of tax-subsidised dollars was spent appropriately,” Blumberg said on Sunday.

The lawyer called it an example of “very poor governance and compliance” and a wake-up call to donors. He said it highlighted the importance of rules governing charitable work abroad.

 

Earlier in January, Canadian broadcaster CBC reported that the charity Jewish National Fund (JNF) of Canada has likewise been under audit by the CRA for supporting the Israel‘s armed forces and its illegal settlements.

The JNF said it had stopped doing so since 2016 but it still remains a government registered charity.

According to Independent Jewish Voices (IJV) Canada, JNF Canada has been the subject of CRA-directed complaints for over four decades and has been violating Canadian tax law for over 50 years.

IJV has been campaigning for the JNF to have its charitable status revoked as it supports the Israeli military and settlements, denies access to land for Palestinians and contributes to their displacement.

Corey Balsam, IJV’s national coordinator, said on Monday that the group is hopeful the “era of impunity for Canadian organisations that support the Israeli occupation is finally coming to an end”.

“It’s about time the CRA cleaned house and applied its own rules to these organisations,” Balsam said in a statement released on Monday.

“Given the wealth of evidence against it and that it is already under audit, we expect JNF Canada to be next.”

To read the article in its original format click here.