Brooklyn, NY – Criminal Conviction, $500k Civil Judgment Against Orthodox Jewish Fundraiser Who Solicted Donations For Fraudulent Charities

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    FILE - Yaakov Weingarten Brooklyn, NY – Attorney General Eric T. Schneiderman today announced the felony tax fraud conviction of Yaakov Weingarten and a more than $520,000 civil judgment lodged against him and his wife for activities related to the Brooklyn-based charitable fundraising ring he operated, which solicited donations from thousands of donors for phony not-for-profit organizations.

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    The judgment, signed by Kings County Supreme Court Justice Carolyn Demarest on Wednesday, resolves a civil lawsuit filed by Attorney General Schneiderman’s office last year against Weingarten and his wife, Rivka, who are alleged to have been the biggest beneficiaries of the scheme and are, under the judgment, required to pay $522,315. Approximately $360,000 of those funds will go to two Israeli charitable organizations that carry out genuine programs similar to the causes for which Weingarten’s fraudulent solicitations raised donations from the public.

    The judgment also permanently bars Weingarten and his associates, Simon Weiss and David Yifat, from any fundraising activities or other charitable activities in the State of New York.

    “We are committed to fighting to protect everyday New Yorkers, particularly those who want to use some of their hard-earned money to support charitable causes, because there has to be one set of rules for everyone,” Attorney General Schneiderman said. “My office will use all the tools at our disposal to protect New Yorkers from unscrupulous fundraisers for sham charities.”

    Weingarten pleaded guilty May 19 in Brooklyn Supreme Court before Judge Matthew A. Sciarrino to Criminal Tax Fraud in the Third Degree, a Class D felony. He paid $90,685 in restitution to the state Department of Taxation and Finance, and on June 23, he was sentenced to five years’ probation. As a condition of his felony probation, Weingarten is forbidden from engaging in any charitable fundraising activities for five years.

    New York State Commissioner of Taxation and Finance Thomas H. Mattox said, “The defendant not only stole donations for charitable organizations, he also committed criminal tax fraud by failing to report income on his tax returns. Tax theft is a crime against all New Yorkers, and we will continue to work with the Attorney General and other levels of law enforcement to investigate and prosecute such perpetrators.”

    In June 2013, the Attorney General’s Charities Bureau filed a civil lawsuit and obtained a temporary restraining order closing Weingarten’s fundraising operation, which Weingarten, together with associates Weiss and Yifat, ran out of a Brooklyn storefront at 1493 Coney Island Avenue.

    According to the suit, Weingarten, Weiss and Yifat raised donations for 19 sham charities from Jewish donors throughout North America, ostensibly for Israeli charitable causes such as emergency medical services and programs for sick children, terror attack survivors, cancer victims, and the poor.

    Large amounts of the money raised — an estimated $2 million — was then withdrawn from charity bank accounts. Some of that money was used to pay workers operating Weingarten’s Brooklyn telemarketing boiler room. Other funds were used by Weingarten and his family to pay for personal expenses, such as mortgages, dentist bills, car loans, and home improvements.

    The complaint also detailed gross mismanagement of charitable assets by Weingarten, including extensive mixing of charitable and personal funds and of funds raised for one charitable cause with those raised for another, which is barred by law. More information on the lawsuit is available here.

    Under the order, Weiss, 29, and Yifat, 68, are also permanently barred from charitable fundraising in New York.

    As part of his guilty plea, Weingarten, 53, admitted that between approximately June 2007 and June 2012, he solicited charitable donations for multiple entities, many of which did not exist, and obtained donations from thousands of donors.

    He further admitted that from January 2009 through December 2011, he paid over $270,000 in personal expenses from bank accounts set up in the names of the purported charities, including mortgages on his two homes, various home improvements, and Cablevision and Con Edison bills. Weingarten admitted that with intent to evade New York State taxes, he failed to report this money as income on his 2009, 2010 and 2011 tax returns.

    On Wednesday, Justice Carolyn Demarest signed the Attorney General’s civil judgment. It permanently shuts down Weingarten’s operation and requires Weingarten and his wife, also 53, to pay a total of $522,315. Of that, $360,000 will go to the United Jewish Appeal/Federation of New York, to be distributed equally to Schneider Children’s Medical Center of Israel, the preeminent pediatric hospital in Israel, and United Hatzalah of Israel, a leading Israeli volunteer emergency medical services organization. The remaining portion of the judgment payment is for penalties and costs to New York State.

    The judgment also requires the dissolution of 11 incorporated entities Mr. Weingarten used to implement his fraudulent fundraising scheme. These entities include four “religious corporations” that on paper purported to be synagogues but in reality were mere shells that helped hide much of his activity behind a cloak of religious freedom.

    Weingarten also made up names of eight other entities, which were never incorporated, and used those names in his scheme. The 19 Brooklyn entities are permanently barred from operating under the order. They are: Hatzalah Rescue of Israel, Inc.; Shearim, Inc.; Bnei Torah, Inc.; Chesed L’Yisrael V’Chasdei Yosef, Inc.; Yad L’Shabbat, Inc.; Hatzalah Shomron, Inc.; Pulse Foundation, Inc.; Agudath Chesed Bikur Cholim Israel, Inc.; Kupat Reb Meir Baal Haness Bnei Torah Eretz Yisrael, Inc.; Congregation Yad L’Shabbat, Inc.; Shearim Hayad L’Torah Center for Hatzalah L’Shabbat and Chesed L’Yisrael, Inc.; Israel Emergency Center; Magen Israel; Hayad Victim Assistance Fund; Lmaan Hatorah; Our Children; Zaka Israel; Yaldel Simcha Yisrael; and Yad Yisrael.


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    13 Comments
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    9 years ago

    a gita businessman. ……while I struggle to pay my rent in B.P.and can’t move because the rents are so high; because every landlord “supposedly” has a mortgage and other expenses..I sit in a delapidated apartment…and my millionaire landlord is enjoying the good life.

    9 years ago

    This ganev got away with it

    Yutka
    Yutka
    9 years ago

    Funny they start by accusing them of taking 2million and yet agree that only 90,000 is owed for taxes and fines. With 360,000 is being given to charity and for this they basically drop the charges!
    I think they realized the case was not as it seemed at first. So they respin all the old allegations when really there backing down.
    I think the defendant did sloppy accounting and paid funds to charity in Israel then used local funds to repay themselves in the US. The AG must have gone through the numbers and realized there case was very weak.
    I looked at the order and no one admitted wrongdoing.

    DanielBarbaz
    DanielBarbaz
    9 years ago

    Not only did they steal money, they are also guilty of “גנבת זמן.”

    How many times were you been disturbed by their telephone solicitations? As many times I was?

    Shame on all of them!

    PaulinSaudi
    PaulinSaudi
    9 years ago

    A “charitable fundraising ring?” You do not often hear of charitable fundraising being done by a ring. In this case it might be correct, however.

    9 years ago

    How cruel to steal from our poor and helpless.

    Yutka
    Yutka
    9 years ago

    It seems he did not steal from the poor as they accused him of doing or they would never agree to drop all charges. The AG is always looking to make headlines and this one is a whopper. HEADLINE “CONVICTED” , sounds like there was a trial and jury but when you read further you find out no conviction but a civil settlement and agreement to pay up for underreporting their taxes.
    The Attorney Generals office use the threat of criminality to get people to settle on their civil matters when they have weak cases. Shame on them for destroying peoples lives just to make the AG look good. Let them go after real crime.