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Rabbi Pleads Guilty In Charitable Tax Fraud Scheme

By Howard M. Friedman

The U.S. Attorney's Office for the Central District of California announced yesterday that a Brooklyn, New York rabbi has pled guilty to conspiring to obstruct the Internal Revenue Service by soliciting charitable donations with secret promises to refund up to 95% of the funds to the donors. Naftali Tzi Weisz, the Grand Rabbi in Boro Park of the Spinka Hasidic dynasty, along with several associates and five charitable organizations, were indicted in 2007 in the scheme under which donors falsely claimed the entire amount of their "donations" as tax deductions. Spinka realized over $744,000 from the scheme. Three of the donors have already pled guilty to tax evasion, and Weisz?s assistant, Gabbai Moshe E. Zigelman, has already been sentenced to 2 years in prison for his part in the conspiracy. Four California men who were part of the money laundering scheme were also scheduled to plead guilty yesterday.

Full post as published by Religion Clause on August 04, 2009 (boomark / email).