Crown Heights, NY – A developer accused of fleecing dozens of Hasidic families in a massive subprime mortgage fraud scheme took cover behind a divine defense on Tuesday.
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Eliyahu Ezagui’s lawyer told jurors his client received “a blessing” from the late Rabbi Menachem Schneerson to build affordable housing for the Lubavitcher community in Crown Heights.
“It was a mitzvah to him, a Hebrew word that means a good deed and an obligation,” defense lawyer Susan Necheles said in her opening statement in Brooklyn Federal Court.
Schneerson is considered by some followers to be their Messiah, and thousands of Hasidim from all over still make a pilgrimage to his grave site 15 years after his death.
Assistant U.S. Attorney William Schaeffer said Ezagui was nothing but a crook who scammed $2.6 million from condominium buyers and more than $10 million from banks, (as was reported here on VIN News).
“Family after family who trusted the defendant are fighting against foreclosure of the homes they bought from him,” Schaeffer told the jury.
Prosecutors built a criminal case against Ezagui after the Daily News revealed in 2008 how he allegedly conned buyers into purchasing condos, then refused to hand over the deeds when the construction was completed.
Instead, Ezagui allegedly gave the deeds to family members – including his wife, father and mother – who applied for mortgages on condos the victims thought they owned.
Although Ezagui had the grand rebbe’s blessing, he needed cash to build and that’s where the investors came in, Necheles argued.
She said the so-called victims are sore losers trying to use the criminal justice system to recoup their investment losses.
The government’s first witness appeared confused by the contracts and promissory notes.
“I thought Ezagui was a good man and I still think he’s a good man, but I trusted that whatever I signed was not going to hurt me,” said Tova Eilenberg, who bought two apartments at 770 Lefferts Ave.
before all the chachomin jump – lets wait till the whole thing plays out… and there is a verdict.
It is a bizayon to use the Rebbe’s name as if he endorsed the dishonesty and fraud he committed. This scoundrel should suffer all of the consequences he earned in his grandiosity. Leave the Rebbe out of it. The Ezagui guy is a crook, had many victims, refused Beis Din countless times, and no intervention by outsiders was able to help provide the deeds that were paid for in full. A plain ganev. At least the criminal justice system will finally have its way. May Klal Yisroel never be punished with the ilks of this crook.
If The rebeh was The Mesiah why didnt he see Thru This Crook?
Ezagui will be released from prison when Moshiach comes.
To #2 yes he might of refused to go to a beis din with the father of one of the buyers as Rav. These people lived in the apartments for years without paying anything
Hey Eliyahu Ezagui- The rebbi told me that you need to give $1,000,000 in unmarked bills. Please send ASAP.
Thanks-
the messiah stuff is a bunch of crock…that said to use the “brocho” which I believe he DID really get from the Rebbe is such a low defense it boggles the mind! Does that mean the Rebbe permitted this stupid scheme? No he did not!
Nice going Ezagui – just with that they sud lock you up and throw away the key. No excuse – many got brochos including me – and many of YOUR former friends – that doesn’t mean you can mess with people this way – their money, their homes yada yada
While many misnagdim and other chassidus have many “issues” witht the rebbe and some of this moishiachist meshugas, very few of us believe he would have been a party to such a fraud and chillul hashem. No one would have taken his br’acha seriously anyway as a “license” to engage in this kind of fraud.
770 Lefferts Ave… 770 people!
that’s right….it was the rebbe who made us do it.
I was his first tenet in 1989-1991 at Eli Ezagui’s first condo at 1227 President.
His “Deal” was my monthly rent of $1,400 would be credited for future 24 months. Thus $1,400 multiplied by 24 months which equals $33,600. Would be be my downpayment toward my mortgage. I would also benefit on discount of sale price toward four bedroom condo at bargain sale price of $180,000. Due to the fact that other condos was still in midst of construction. The fair market value was $250,000. It was my fault “Deal” was not completed due to my inability to continue
paying monthly rent of $1,400 near the completion of second year.
Once during argument of rent payment. On our porch, off dining room, facing the outside of front building. Eli pulled out a pistol /gun and threatened me. I told him, “Either pull the trigger or pocket it.”
In my opinion HE BROKE THE LAW by trying to obtain mortgages through banks. Its a shame and open chillul hashem by exposing yidden of crown heights who were on section eight and food stamps.
[ to be continued ]
This is unbelievable BS. Sorry. Ezagui was a developer and the Rebbe encouraged developers to build/renovate/rejuvenate Crown Heights.
Ezagui made the mistake of over investing on his properties when he did not have the right to do so, but people paid bobkes on his properties.
To invoke the Rebbe here is beyond a disgrace, it is ridiculous. Imagine, if the Rebbe encourages people to get married -does that mean he gives a blessing if the person decides to abuse the blessing by abusing his wife?????
People have free choice. The Rebbe gave many a bracha to develop Crown Heights, and today, Crown Heights is a beautiful, thriving neighborhood, a miracle in of itself. In the 1970’s it was a shadow of what it is today. The Rebbe wanted a beautiful neighborhood that would stay Jewish, not like the many formally beautiful Jewish neighborhoods that are slums today. That was what the blessing was for – to beautify and build Crown Heights….
Eli Ezagui was harsh, hard and arrogant. As in our past years David Schick of Flatbush who embezzeled penshion funds from teachers well-known & local yeshivoths. In our present time, Chaim Dweck of New Jersey with his ponzie schemes of high returns on his so-called investments.
People gave their hard earned cash toward purchases of condos. Eli’s so-called
plan to save them real estate taxes thus he held on to their DEEDS even though they paid-in-full.
Greed on both parties. Alot of blame to spread around. How unfortunate.
Folks, how many times do you need to be convinced that one who uses religion to perform misdeeds, abuse, violence, thievery… etc is a bigger sinner than others and will be punished much more? When will jews learn that alot of rabbis (33 concert ban fools) , and others are fake and full of crock? This religion is a scam a joke. Do not be fooled by these ‘religious’ zealots who are nothing more than snake oil salesmen!
Does anyone even think the Rebee could or would endorse cheating! How dare anyone even think it is a possibliity. Trying to use this as a defense makes one understand what a Drei Kup
the scamer must be. Is there no limit to Chutzpah. SHAME SHAME
There certainly is no honor among a theif!
I should have tried that defense. ‘Yes, I am a crook but The Rebbe told me to do it’.
I might still be president!
here we go again…
Blame it on the Rebbe.
Somebody should come out with a book called “blame it on the Rebbe”.
a guide on how to blame all your faults on the holy Lubavitcer Rebbe.
What did the Rebbe do to deserve this?
Moshiach is decided by hashem. There are no elections to vote who is moshiach. moshiach could eb a misnagid. whoever moshiach is, can’t wait to greet him.
When he says the “REBBI” its like using a “code,” what he means is that the rebbi knew what he is doing actively, ….. I consider this a disgrace to the rebbi and all Judaism. …The rebbi melech hamoshiach would never had allowed this.
The Rebbe, Melech HaMoshiach went out of his way to protect his chassidim and shield the people from getting harmed. How could Eliyahu Ezagui use the rebbi in such a manner? I have more then a few stories of how I had merited to see the Rebbe, shlita, Melech Hamashiach, with my plain eyes of flesh I saw zidkus and chassidus the rebbi was holy is holy and its a disgrace to pull the rebbi into this mess
HaShem Yirachem. May we all be protected from incompetents and shlemiels. No one wants to be the shlemazel.
Exactly when did he get this endorsement from the Rebbe??
We’re approaching his 16th yartzeit.
The journalist that wrote this report know nothing about chabad, and probably went to wikipedia to look up who the rebbe is… notice ezagui never said the rebbe is the messia. he just said the rebbe gave him a blessing… the whole deal has nothing to do with messia, just an ignorant journalist.
All I know, Rebbe would never give a Brochah for a gneivah
As is my policy, I never comment on “guilty” or “innocent” because I feel it would be presumptuous when I don’t know exactly what transpired. This is the purveiw of rabbonim, courts, and most importantly Melech Malechei HaMelachim. But I am appalled at Ezagui’s using the hallowed name of the Rebbe as defense. I have to say, someone who can try to pull the Rebbe into fraud and deception does not make a good case of his innocence.
Ezagu has to go to the ohel and ask forgiveness, the holy rebbi shlita melech hamoshiach will forgive him I am sure for using his name in a fraud defense
Some of u lady posters just get a life – drop the melech hamoshiach stuff will ya – will you give it a break already??? – ur all so annoying and clueless. Besides this isn’t a chabad site.. where is your brains?
Obviously none, or you would have derech eretz to the vast majority of non lubabs (& lubabs) that regard you with utter disebelief. Just amazing!
when obama will gave him a blessing then he will be all right not because he is the masiah only he can pardon
As an askan, I once interceded on behalf of a family whose deed was being withheld. I spoke to this guy. His reaction was embarrassing, and it was unbecoming of a Yid. What a pity on his family for such a relative, who is almost everything a Yid should not be. And I agree with the many earlier comments that to invoke the name and mention of a tzaddik in the same sentence as this guy is a chutzpah and disgrace. May this crook receive his well deserved conviction and unlimited bushoh.
this man was in Israel with his family, he came back to face his charges and prove himself innocent.
the least we can do is give him the benefit of the doubt, he did help hundreds of people.
If you want Ezagwei to go to the Ohel – then how can you still “nickmname” the Rebbe as “Melech Hamoshiach Shlita”?! If he is buired at the Ohel then he can’t be “living” as a “Shlita”..! It is because B.T. like you that destroy the the name of Lubavitch.
to #15 .
I am a owner at one of his buildings that was also cheated by this Ezagui low-life. I was paying rent 2850 monthly for 6 month till I was able to close and was promised that this will be used towards the down payment.
When we came to the closing his corrupted lawyer said that he changed his mind and decided not to use this 17,100.00 towards the down payment. He stole that money from me. He is a crook!!!
Chutzpah he has to use the Rebbes name while the only support he ever got was from LG who was known for saying lies .
This has been a problem since yeshiva days, the an’hu’la showed us first with the work program etc. lunch program etc. F.R.U.M. etc. that it is ok to rip off the goverment just don’t get caught. Well it went on to rip off people etc. as we can see now. We have to rewire ourselfs. This is no joke.
Maybe we should go back to the Rabbi who now lives on President st. also the guys who are now on springfield blvd. I am not talking about the Rebbe.
Its the greatest chutzpa to pull the Rebbe into peoples crimes. The Rebbe would give a brocho to anyone trying doing good. However the Rebbe NEVER gave a Hechsher to do illegal transactions, to cheat people and banks. When they finished blaming everyone on the adress book they go to the Rebbe, he gave the bracha. Shame, shame, shame.
I also purchased one of these Condo’s from him and I know the inside story that he is indeed 100% innocent of all charges.
He cheated no one, the verdict will prove is innocence.
You will all see that the verdict will be NOT Guilty on all charges!