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New York - WSJ: Prominent Orthodox Jewish Philanthropists Among Those Hit Hard By Platinum Losses

Published on: December 23, 2016 11:00 AM
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FILE - U.S. Attorney for the Eastern District of New York Robert Capers arrives to speak to media to announce the unsealing of an indictment charging Mark Nordlicht, the Founder and Chief Investment Officer of Platinum Partners and six other individuals with securities fraud, investment adviser fraud and conspiracy in an approximately $1 billion fraud in Brooklyn, New York City, U.S., December 19, 2016. REUTERS/Andrew KellyFILE - U.S. Attorney for the Eastern District of New York Robert Capers arrives to speak to media to announce the unsealing of an indictment charging Mark Nordlicht, the Founder and Chief Investment Officer of Platinum Partners and six other individuals with securities fraud, investment adviser fraud and conspiracy in an approximately $1 billion fraud in Brooklyn, New York City, U.S., December 19, 2016. REUTERS/Andrew Kelly

New York - Prosecutors are continuing their investigation into what may turn out to be the largest investment fraud scheme since the Madoff case which appears to have victimized some of the largest philanthropists in the Orthodox Jewish community.

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More than 600 clients may have invested in Platinum Partners, with six of the firm’s executives were arrested on Monday by the FBI, as previously reported on VIN News (http://bit.ly/2hyyPd7 ).  Included in that number are well known names in the Jewish community including Ralph Herzka and Rubin Schron, reported the Wall Street Journal.

Schron said that he left the decisions about where to invest his holdings to his money manager.  Jack Bojman, who currently holds that position, said that the Platinum investments were made prior to his hiring.

Shlomo Yehuda Rechnitz is also said to have made major investments with Platinum, with a source estimating them at tens of millions of dollars.  Rechnitz reportedly told friend that he has had to scale back on his charitable donations because of the Platinum fiasco and is said to have had to trim has annual $5 million donation to the Mirrer Yeshiva in Jerusalem to just $1 million.

Another Platinum client, Torah Umesorah, invested a multi-million dollar contribution with the firm at the donor’s request in 2008.  Platinum refused the organization’s request to withdraw its holding last year, finally agreeing to treat the redemption as a loan bearing investment.  Sources said that the money still has not been repaid.



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Read Comments (11)  —  Post Yours »

1

 Dec 23, 2016 at 12:30 PM LuckyStrike Says:

On one had I wish I had those worries. On the other hand I am glad I don't. Not sure....

2

 Dec 23, 2016 at 01:19 PM kenyaninwhitehouse Says:

I doubt Schron, Rechnitz or Herzka will be applying for food stamps now.

3

 Dec 23, 2016 at 02:35 PM Erlich Says:

Sad story. Here we go again, again, and again. No end to this chillul Hashem.

4

 Dec 23, 2016 at 02:00 PM Anonymous Says:

If they'd robbed anybody other than frum Jews we'd all be raising money for their defense.

5

 Dec 23, 2016 at 02:53 PM JF Says:

Unfortunately there are many others too that take OPM wrongly without a conscious. Very sad for all the victims...

6

 Dec 23, 2016 at 03:03 PM woodmerejoe Says:

A charity has a fiduciary obligation to make sure the money the received from donors is safe. A charity is not a business which can take chances with other
people's money

7

 Dec 23, 2016 at 03:06 PM Texas_Joe Says:

Reply to #3  
Erlich Says:

Sad story. Here we go again, again, and again. No end to this chillul Hashem.

Nordlicht is a Yid?

8

 Dec 24, 2016 at 11:31 PM Anonymous Says:

Then we wonder why kids go off the derech. They see these people who are so looked up to become criminals and figure why be part of such a "religion'?

9

 Dec 25, 2016 at 01:31 AM emes01 Says:

I'm sure the Platinum partners will do the right thing and sell their mansions and Israel homes to reimburse everyone. These are drum people.

10

 Dec 25, 2016 at 09:09 AM MarkTwain2 Says:

Reply to #2  
kenyaninwhitehouse Says:

I doubt Schron, Rechnitz or Herzka will be applying for food stamps now.

Amazing that your comments weren't disallowed

11

 Dec 25, 2016 at 11:04 AM Anonymous Says:

Reply to #10  
MarkTwain2 Says:

Amazing that your comments weren't disallowed

Why? It's true.

12

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