In a
press release today, the U.S. Department of Justice announced:
The mayors of Hoboken, Secaucus and Ridgefield, the Jersey City deputy mayor and council president, two state assemblymen, numerous other public officials and political figures and five rabbis from New York and New Jersey were among 44 individuals charged today in a two-track federal investigation of public corruption and a high-volume, international money laundering conspiracy.
According to the
Newark Star-Ledger, the rabbis arrested were connected to the prosperous and close-knit Syrian Jewish community of Brooklyn (NY) and Deal (NJ). (The Syrian Jewish community was profiled in a
2007 New York Times Magazine article.) Today's press release summarized charges against the rabbis:
Eliahu Ben Haim, of Long Branch, N.J., the principal rabbi of a synagogue in Deal, N.J., charged with money laundering of proceeds derived from criminal activity.
Saul Kassin, of Brooklyn, N.Y., the chief rabbi of a synagogue in Brooklyn, New York, charged with money laundering of proceeds derived from criminal activity.
Edmund Nahum, of Deal, N.J., the principal rabbi of a synagogue in Deal, charged with money laundering of proceeds derived from criminal activity.
Mordchai Fish, of Brooklyn, N.Y., a rabbi at a synagogue in Brooklyn, charged with money laundering of proceeds derived from criminal activity. His brother [Lavel Schwartz], also a rabbi, was charged as well.
It went on to describe the money laundering portion of the charges as follows:
The money laundering conspiracy involved high-ranking religious figures and their associates in Brooklyn, N.Y. and Deal, N.J. Among them was Eliahu Ben Haim, of Long Branch, N.J., the principal rabbi of Congregation Ohel Yaacob in Deal, N.J. Typically ... Haim received bank checks in amounts ranging from tens of thousands of dollars up to $160,000 at a time made payable to a charitable, tax-exempt organization associated with Haim and his synagogue. To complete the money laundering cycle, Haim would return the amount of the check in cash ..., less a cut for Haim, typically 10 percent....
Similar circles of money launderers in Brooklyn and Deal, N.J. operated separately but occasionally co-mingled activities and participants. In most cases, the rings were led by rabbis who used charitable, non-profit entities connected to their synagogues to "wash" money that they understood came from criminal activity like bank fraud, counterfeit goods and other illegal sources.... [T]he rabbis made significant sums in fees, which typically ran between five and ten percent per transaction.
The release emphasized the importance in the investigation of a cooperating witness who infiltrated the money laundering network and later dealt with various public officials who are being charged with bribery. The
Wall Street Journal says that the cooperating witness is Orthodox Jewish real estate developer Solomon Dwek who had been arrested on bank-fraud charges in 2006. The FBI began using Mr. Dwek as an informant in mid-2007, wiring him and videotaping his encounters with targets of the investigation.
