A massive federal bankruptcy case threatens to cripple the school system of Brooklyn’s Satmar community, whose operator is accused of a huge money-laundering scam, court records show.
The United Talmudical Academy is being sued for $200 million by a bankruptcy trustee who claims the UTA helped a big donor conceal bank fraud at the contributor’s company -- and the case is expected to go to trial early next year.
The trustee claims in Brooklyn federal bankruptcy court records that as far back as 1997, the UTA was helping the family of Victor Jacobs hide the fact that his Allou Distributors was cooking its books to boost its line of credit from a lender.
http://www.jpost.com/NationalNews/Article.aspx?id=244105
ReplyDeleteShalom Rubashkin is involved. Allou paid Agri $3.2mm in 2002 for nothing in return. (Agri was found guilty in 2007 and paid $1.4mm in penalties.)
ReplyDeleteAt least it's achdus... Lubavitcher and Satmerer chassidim working together to commit fraud together.
As for the Satmerer yeshiva...
R' Breuer was once approached by a couple who were distressed about a child who went off the derekh. They discussed the likely causes, then R' Breuer asked whether they ever fed the child non-kosher food, as violating kashrus causes timum haleiv (callous or covering-over of the heart). They assured him that of course not. He then asked about the kashrus of the money they used to purchase the food...
When I was 12, the school I was in used the students in a charade to cover up their defrauding the gov't. (The owner of the school was eventually prosecuted some 15 or so years later. I don't know how the case turned out, as I didn't go near it as I might end up compelled to honestly testify what I recalled. Jumping back to 7th grade...) I refused to go back, insisting that such a school didn't have any Torah to teach me.
Part of the wide ranging Allou scam was when they tried to pretend they bought millions of dollars worth of product from Rubashkin. There's one huge discrepancy with that, that Allou is cosmetics and health care & Rubashkin is meat.
ReplyDeleteI think the NYP's big "expert" is confusing UTA with Satmar itself. Satmar itself is loaded with real estate but I think UTA is leasing a lot of public schools that would be otherwise empty because they are in frum neighborhoods.
ReplyDeletewhat about all the grey market the did
ReplyDeleteOne of the dangers of being a beggar as a living. Some of the money will be offered from dirty sources. You can refuse the money on principle if you have a strong sense of morality and sticking to the Torah's principles, but it is probably far more unlikely for people made into "professional beggars" to adhere to principle stands like that.
ReplyDelete