Brooklyn Grand Rebbe Arrested In Tax Fraud Scheme
Leader Of Hasidic Group Accused Of Taking Advantage Of Millions Of Dollars In Charitable Donations
Lou Young Reports
NEW YORK (CBS) ? A pillar in Brooklyn’s Orthodox Jewish community was arrested Wednesday, charged in an elaborate tax fraud and money-laundering scheme that allegedly took advantage of millions of dollars in charitable donations, CBS 2 has learned.
There was shock and disbelief in the tight-knit Hasidic community after news spread that Naftali Tzi Weisz, 59, was arrested in Los Angeles along with his executive assistant, identified as 60-year-old Moshe Zigelman.
Weisz heads a Spinka sect of Hasidic Jews — one of about 10 groups that trace their roots back to a town in the Ukraine by that name — in the Borough Park section of Brooklyn. To put it in perspective, the Spinka sect is much smaller compared to larger sects such as the Satmar or Lubavitchers.
The 37-count indictment unveiled included charges of conspiracy, mail fraud and money laundering.
Authorities say Weisz helped solicit millions of dollars in contributions to five Spinka charitable groups in Brooklyn by promising to secretly refund up to 95 percent of the donations. That way, the contributors could falsely claim higher tax deductions, authorities said. (….Full Article)
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