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Newark, NJ - Brooklyn Rabbi In Dwek Case Faces Up To 20 Yrs After Pleading Guilty

Published on: April 8, 2011 01:11 PM
By: USDOJ/VIN News
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Newark, NJ - An Orthodox Rabbi and principal rabbi of a charity organization ‘Gemach’ in Brooklyn, N.Y., admitted today to conspiring to launder approximately $900,000 he believed was criminal proceeds, U.S. Attorney Paul J. Fishman announced.

The Rabbi 58, of Brooklyn, N.Y., pleaded guilty before U.S. District Judge Joel A. Pisano to an Information charging him with money laundering conspiracy.

According to documents filed in this case and statements made in Trenton federal court:

The Rabbi admitted that beginning in early 2008, he met with Solomon Dwek, an individual he now knows was a cooperating witness with the United States. For a fee of approximately 10 percent, the Rabbi agreed to launder and conceal Dwek’s funds through a series of purported charities, also known as “gemachs,” which the Rabbi controlled or to which he had access. the Rabbi admitted that prior to laundering Dwek’s funds, Dwek repeatedly told him the money was the proceeds of illegal activity – including bank fraud, trafficking in counterfeit goods, and bankruptcy fraud.

In order to hide the source of the money, the Rabbi directed Dwek to make the checks payable to several gemachs which were purportedly dedicated to providing charitable donations to needy individuals. Once Dwek gave him the checks, the Rabbi passed them to a coconspirator who deposited them into bank accounts held in the names of the purported charities. the Rabbi would then arrange to make cash available through an underground money transfer network.

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The Rabbi admitted that he engaged in approximately 15 money laundering transactions with Dwek, helping to convert approximately $900,000 in checks into more than $800,000 in cash, keeping a cut.

The charge to which the Rabbi pleaded guilty carries a maximum statutory penalty of 20 years in prison and a $250,000 fine. In addition, the Rabbi agreed to forfeit approximately $90,000 by the date of sentencing, scheduled for July 28, 2011.

“Money laundering in the post-9/11 era is treated very severely and people convicted on such charges face steep penalties,” according to Josh Margolin, co-author of the new book The Jersey Sting: A true story of corrupt pols, money laundering rabbis, black market kidneys and the informant who brought it all down.


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1

 Apr 08, 2011 at 01:22 PM lchaim Says:

such a rachnunis of him all because the stuoid muser

2

 Apr 08, 2011 at 02:12 PM Chaim Says:

ולמלשינים אל תהי תקוה
ימ''ש ו ז כ ר ו

3

 Apr 08, 2011 at 02:12 PM Anonymous Says:

to #1. rachmunis on him because he broke the law.

4

 Apr 08, 2011 at 02:19 PM DavidCohen Says:

Reply to #1  
lchaim Says:

such a rachnunis of him all because the stuoid muser

>> because the stuoid muser

I assume you meant to type "rachmunis" and "stupid". And if so, then no, you are wrong. It is all because of doing something he should not have done. Misplaced blame will only keep perpetuating this type of behavior.

5

 Apr 08, 2011 at 03:00 PM reid Says:

I hope Dweck all the worst. This piece of dreck (with all the excuses) is the worst piece of what comes out of dogs back side. What a bum low life.

6

 Apr 08, 2011 at 03:56 PM Yanki Says:

A life in prison for such a thing is crazy and vicious any way you look at it.

Its an individual against the biggest government in the world. The Gov has no problem telling Egypt throw down your gov because of human abuse where you yourself behave as one of the worst of all the nations.. The USA is very good to us but I belive, as if you do bad you will get punished at the end, America will pay a dear price for this.

May Hashem have rechmunes on this tzibrochene and ois-gemuthchete yid

7

 Apr 08, 2011 at 04:10 PM Raphael_Kaufman Says:

Reply to #5  
reid Says:

I hope Dweck all the worst. This piece of dreck (with all the excuses) is the worst piece of what comes out of dogs back side. What a bum low life.

You can't con an honest man. For all that Dweck is a piece of what rhymes with his name, none of those caught in the operation would have been caught if they had been honest to begin with. They were all eager to find a clever khap to make some money, either for their mosdos or themselves and they all knew what they were doing was wrong and illegal to boot. A mussar haskeil for all of us. If you do right you never have to worry.

8

 Apr 08, 2011 at 04:32 PM who's the smart one here! Says:

Reply to #7  
Raphael_Kaufman Says:

You can't con an honest man. For all that Dweck is a piece of what rhymes with his name, none of those caught in the operation would have been caught if they had been honest to begin with. They were all eager to find a clever khap to make some money, either for their mosdos or themselves and they all knew what they were doing was wrong and illegal to boot. A mussar haskeil for all of us. If you do right you never have to worry.

I know, I wouldnt've fallin into this trap. I know, drek conned everyone into giving him money for a high return, madoff did the same, (called a great salesman). by madoff his clients were "victims", tooo stupid, believed a high return was possible". by drek everybody was a tax cheat (just as good a salesman as madoff). fact: everybody could be sold a trash business with a dirty bill of health by the right salesman. disgusting government.

9

 Apr 08, 2011 at 04:37 PM Tzi_Bar_David Says:

I have to remember that one, #7, "You can't con an honest man." I love it, thanks!

10

 Apr 08, 2011 at 04:49 PM MazelKGH Says:

I guess it must depend on where you are from. I've been on this planet for a long time and never as much as got a parking ticket. Greed and excuses (translated to stupidity) are simply not in my personal dictionary.

11

 Apr 08, 2011 at 06:04 PM emes01 Says:

Why should he go to jail if he didn't hurt anyone? Jail creates more criminals than it cures.

12

 Apr 08, 2011 at 06:24 PM Anonymous Says:

Reply to #6  
Yanki Says:

A life in prison for such a thing is crazy and vicious any way you look at it.

Its an individual against the biggest government in the world. The Gov has no problem telling Egypt throw down your gov because of human abuse where you yourself behave as one of the worst of all the nations.. The USA is very good to us but I belive, as if you do bad you will get punished at the end, America will pay a dear price for this.

May Hashem have rechmunes on this tzibrochene and ois-gemuthchete yid

?America will pay a dear price because "the Rabbi" committed a felony (with the aim of converting $ 100,000 to charities controlled by him)? He clearly knew that this was illegal - else why would Dwek part with the money?

13

 Apr 08, 2011 at 06:24 PM Yazmach Says:

Reply to #9  
Tzi_Bar_David Says:

I have to remember that one, #7, "You can't con an honest man." I love it, thanks!

Al tudin chavrchu at stagi limgomo

14

 Apr 08, 2011 at 09:10 PM esther Says:

Reply to #5  
reid Says:

I hope Dweck all the worst. This piece of dreck (with all the excuses) is the worst piece of what comes out of dogs back side. What a bum low life.

this is a such a vulgar post!!!

15

 Apr 09, 2011 at 04:47 PM Anonymous Says:

This is white collar crime where the punish is worst than the crime while murder, and such are let off easy. Look at Pollard he should have been let out 15 years ago

16

 Apr 09, 2011 at 09:27 PM clear-thinker Says:

Reply to #11  
emes01 Says:

Why should he go to jail if he didn't hurt anyone? Jail creates more criminals than it cures.

Your question shows what is the problem with parts of the frum community. It is time to realize that white collar crime is a crime, and that people who are convicted will go to prison.

17

 Apr 09, 2011 at 11:00 PM Anonymous Says:

Reply to #15  
Anonymous Says:

This is white collar crime where the punish is worst than the crime while murder, and such are let off easy. Look at Pollard he should have been let out 15 years ago

Federal penalty for murder is either life/no parole or death. That's not getting off easy.

18

 Apr 09, 2011 at 11:29 PM stamm Says:

Reply to #16  
clear-thinker Says:

Your question shows what is the problem with parts of the frum community. It is time to realize that white collar crime is a crime, and that people who are convicted will go to prison.

although most agree this is a crime, but 20 years??? that is not justified!!

19

 Apr 09, 2011 at 11:52 PM DavidCohen Says:

Reply to #13  
Yazmach Says:

Al tudin chavrchu at stagi limgomo

“Al tudin chavrchu at stagi limgomo”

Who are you referring to? I hope both Dweck and the Rabbi, otherwise you'd be quite the hypocrite.

20

 Apr 10, 2011 at 09:15 AM Anonymous Says:

Reply to #12  
Anonymous Says:

?America will pay a dear price because "the Rabbi" committed a felony (with the aim of converting $ 100,000 to charities controlled by him)? He clearly knew that this was illegal - else why would Dwek part with the money?

all this is so tragic. 20 years! well, if dead people can vote, then this 20 years is not surprising and all this happening in the US. the country that tells third world countries how to behave, watches other countries elections to see if its straight, and being a top cop to the world but look within it whats happening. the nation the world respected is long gone.

21

 Apr 10, 2011 at 12:13 PM clear-thinker Says:

Reply to #18  
stamm Says:

although most agree this is a crime, but 20 years??? that is not justified!!

What is justified? Lets not get into the sentence until it is given. The maximum is 20 years. I have no idea what the Rabbi will be sentenced to and neither do you. Still, let us not minimize what was done. The Rabbi was willing to clean illegally obtained money. There I said it. Taking $100,000 to clean $800,000 for a criminal is illegal. It deserves punishment. The sooner we realize this, the sooner we will stop seeing frum people imprisoned for money laundering. One of the main purposes of prison is to stop others from doing the same act. The threat of 20 years imprisonment may well do this.

22

 Apr 10, 2011 at 03:30 PM Yanki Says:

Reply to #21  
clear-thinker Says:

What is justified? Lets not get into the sentence until it is given. The maximum is 20 years. I have no idea what the Rabbi will be sentenced to and neither do you. Still, let us not minimize what was done. The Rabbi was willing to clean illegally obtained money. There I said it. Taking $100,000 to clean $800,000 for a criminal is illegal. It deserves punishment. The sooner we realize this, the sooner we will stop seeing frum people imprisoned for money laundering. One of the main purposes of prison is to stop others from doing the same act. The threat of 20 years imprisonment may well do this.

"The threat of 20 years imprisonment may well do this"
How about cutting off his hands or taking out his eyes so to teach a lesson...

be sensible to punishment related to degree of crime.
One of the seforim say that sitting in prison is like a half a death sentence.

23

 Apr 10, 2011 at 07:40 PM clear-thinker Says:

Reply to #22  
Yanki Says:

"The threat of 20 years imprisonment may well do this"
How about cutting off his hands or taking out his eyes so to teach a lesson...

be sensible to punishment related to degree of crime.
One of the seforim say that sitting in prison is like a half a death sentence.

Yanki, lets be sensible. You have come up with no answer to my question. What is the proper sentence for laundering $800,000? According to the law it seems to be up to 20 years in prison. It seems that the government takes this type of crime seriously. So should we.
If you think that it requires taking out someone's eyes, I disagree. However, following your rationale it seems that sitting in prison should not be an option. I disagree with that also.

24

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