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May 24, 2013 /15 Sivan, 5773
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Posts Tagged ‘fraud’

Ringleader Found Guilty in $57M Fraud at Claims Conference

Thursday, May 9th, 2013

Semen Domnister, the former Claims Conference employee who was charged with leading a $57 million fraud scheme at the Holocaust restitution organization, was found guilty Wednesday by a U.S. District Court jury in Manhattan after a four-week trial.

Domnitser and two others, Oksana Romalis and Luba Kramrish, were found guilty on all counts., and 28 others charged in the fraud scheme have pleaded guilty.

“To have it all come to closure is extraordinarily important,” Greg Schneider, the executive vice president of the Claims Conference, told JTA. “We’re obviously very happy that justice has been served, but focus on the needs of Holocaust survivors has always been our main priority.”

The fraud was discovered in 2009 and dated back to 1993. It involved falsifying applications to the Hardship Fund, an account established by the German government to provide one-time payments of approximately $3,360 to those who fled the Nazis as they moved east through Germany, and the Article 2 Fund, through which the German government gives pension payments of approximately $411 per month to needy Nazi victims who spent significant time in a concentration camp, in a Jewish ghetto in hiding or living under a false identity to avoid the Nazis.

Jury deliberations Wednesday took just a few hours.

Who Is Lying, Ayalon or Lieberman?

Thursday, May 2nd, 2013

Former Deputy Foreign Minister Danny Ayalon testified in court Thursday against his former boss, Foreign Minister Avigdor Lieberman, who is on trial for allegedly trying to win an ambassadorial post for Ze’ev Ben Aryeh, who police say tipped off Lieberman about a police probe against him in Belarus.

Ayalon was head of the Foreign Ministry appointments committee at the time and recalled that Lieberman told him in his office, “We need to appoint Ben Aryeh” as ambassador to Latvia.

Ayalon has no reason to love Lieberman, who dumped him from the Israel Beiteinu list of Knesset Member candidates in the last election.

Ayalon claims, “I am not vengeful and I don’t hold grudges…. A trial is about justice and truth; it is not at all about my personal political future.”

After Ayalon said in court that he was willing to shake hands with Lieberman, the defendant shot back, “I won’t shake hands with frauds and liars.”

The outcome of the trial will determine Lieberman’s political future. If he is found guilty of fraud and is jailed for at least three months, or if the court decides his crime is a “mark of shame,” he will be prohibited from holding a Cabinet position for seven years.

How to Prevent Fraud Crimes Against the Elderly

Monday, April 29th, 2013

Why do senior citizens, who have so much life experience, fall prey to fraud schemes so often? And who would be heartless enough to con an elderly grandparent? On this week’s Goldstein on Gelt show, Doug Shadel, senior director of Washington’’s AARP and a leading expert on fraud and the elderly, explains how you can protect yourself and the people you love most from scams and cons.

Milking the System, Legally

Thursday, March 14th, 2013

An article in lohud (Journal News) once again brings to mind the poverty of Hasidic communities like New Square. It appears that the poverty rate in New Square is so high that it is considered one of the poorest places in the nation. That means that most of its residents qualify for section 8 housing which a Journal News analysis has apparently shown to be the case.
New Square has the highest proportion of section 8 housing in the area. There are several technical reasons for this. But I don’t think it is arguable that this community is basically a poor one. 58% of its residents qualify for that dubious distinction. Nearby Kaser has an even larger percentage of poor people: 70%!

While the article focuses on section 8 housing and how it is apportioned, I think it is more important to focus on the reasons why this is the case. I believe it essentially boils down to the following 3 important factors: Large family size; the more expensive lifestyle of being an observant Jew which include additional expenditures on things like Kosher food and school tuitions; and education.

Hasidic enclaves more than any other segment of Orthodox Jewry have the largest families by far. 10 or more children per family is not uncommon.

The reason for that is the emphasis by Judaism on procreation. This is a Mitzvah in the Torah. We are required to fulfill the biblical commandment of pru u’rvu – “be fruitful and multiply.” Although the sexual act is not limited to procreation – it is certainly the primary purpose of it. How we fulfill that commandment (i.e. how many children… or whether we need one of each sex or not) is the subject of dispute among the poskim.

The question arises whether contraceptives may be used before or even after after one fulfills that obligation. And if so what kinds of contraceptives are permitted and what kind are not. I am not here to paskin, but there are many poskim that permit it based on various considerations. One should ask a competent posek whether their personal circumstances apply. The permit can range anywhere from universal permission when health (both physical and mental) is an issue to varied and eclectic personal situations where poskim will differ. Some are very lenient. Some – not so much.

It is no secret that Haredi – and even more so Hasidic communities are the most stringent in their application of such permits. It is relatively rare to find Hasidim that use contraceptives. I believe that Hasidic poskim rarely allow the use of contraceptives except in cases where the mother’s physical health is in danger. Hence the large families.

I am not here suggesting that Hasidim start looking for new poskim. I am only stating what I believe to be a contributing factor to the poverty among them. A typical family of 12 (10 children and the 2 parents) is pretty expensive to feed, clothe, and house.

Kosher food is certainly an increased expense for all observant Jews. I don’t see that as a primary factor in their poverty. But it is contributing one.

Tuition for Jewish education is a problem for every observant family as well. In fact I would say the reverse is true. The Hasidic schools are a lot less expensive than the non Hasidic ones. By far Modern Orthodox schools are the most expensive. But still, Hasidic schools aren’t free. And even though the per child expense is a lot less than other Orthodox denominations, the total per family cost may actually be greater if you compare the typical size of the Modern Orthodox family to the Hasidic one.

I doubt that those 58% of New Square and 70% of Kaser families that are below the poverty line pay full tuition. If you don’t have the money how are you going to pay it? How those schools function in communities that are so poor is beyond the scope of this post (except for one… more about that later). Suffice it to say that the schools are subsidized by a combination of wealthy donors, government programs, and much lower salaries for their teachers – who are probably also below the poverty line.

That brings me what I think is the biggest reason for their poverty – education. Or more correctly the lack of it!

I have been one of the loudest critics of the lack of education in the world of the extreme right wing of Haredim of the Yeshiva world. They eschew any secular studies in high schools so as to maximize their time on Torah study. This is the across the board view of the vast majority of Haredim in Israel and has increasingly become the attitude here.

They do not see working for a living as the primary function of a Jew. To the extent that one can, one should stay in the Beis Hamedrash full time for as long as possible. Preparation for the work place is not allowed to take away one’s time from Torah study. If one ‘doesn’t make it’ in ‘learning’ then he can go out into the workplace and earn a living as a second class citizen. Let him get training then. That is the attitude.

Ironically that is not the attitude of Hasidim. They do encourage their people to work for a living and support their families. They only encourage full time learning for the elite – those who will contribute to the klal via the Torah knowledge they gain – by becoming rabbis, poskim, teachers. For everyone else, supporting the family comes first. In the Hasidic world the average Hasid is encouraged to stay in kollel for only a short time and then to go find a job.

The problem is that many Hasidic leaders discourage any real preparation for a job. With rare exception – they do not allow their Hasidim to go to college. And their secular high school education is well below average. Many do not get any real training for the workplace. They are also discouraged from going into the outside world to look for jobs. They are instead encouraged to find jobs in their own community. So afraid are they of outside influences. In order to perpetuate this system they glorify the sacrifice of poverty as an ideal way of life – calling it living modestly.

I have no problem with living a ‘modest lifestyle’… or extolling its virtues. My problem is that people still need to eat, and pay rent. That requires more money than their impoverished lifestyles give them. The way they handle that is when it becomes a problem.

The Hasidic glorification of the ‘modest lifestyle’ requires too many to utilize every single means of support that the government gives to the poor. Whatever program is out there, they will find it and use it to the max. They milk the system albeit legally. Which is what section 8 housing is doing for the people of New Square.

They need the money to live and use whatever legal means they can to get it. Sometimes bordering if not crossing the line on fraud. As was recently reported in the media with e-rate.

Even if legal lines are never crossed – what kind of message does it send to the world that our vaunted Jewish minds are put to use to milk the welfare system for our own benefit? Is this how we are supposed to enlighten the world about the beauty of Torah?

And I only wish there was no fraud. We all know about the rabbinic leaders that have knowingly crossed serious lines of fraud to pay for the ‘modest’ lifestyles they demand of their people.

How many money laundering schemes will it take to realize that preventing people from learning how to support themselves is the single biggest contributing factor to the Hilul HaShem of fraud?

How many ‘perp walks’ by Kipa wearing bearded Jews will it take before this community realizes that their flock needs to be better educated in order to support their families?

How many years in prison by a prominent rabbinic leader or Hasidic Rebbe will it take in order to realize that encountering the outside world is a ‘necessary evil’ and the education must be provided so as to encounter it and make a living in it?

Is living the impoverished lifestyle that the demands of insularity entails really worth the Hilul HaShem of milking the system even legally, not to mention the almost certain fraud that all too often results from it?

Visit Emes Ve-Emunah.

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