6-20-11 TRENTON, NJ—Levi Deutsch, an Israeli citizen born in Brooklyn, N.Y., admitted today to conspiring to launder approximately $200,000 in funds that he believed were the proceeds of unlawful activities, U.S. Attorney Paul J. Fishman announced.
Levi Deutsch, 34, 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:
Deutsch admitted that in March 2009, he was introduced to Solomon Dwek, an individual he now knows was a cooperating witness with the United States. The introduction was made by Rabbi Mordchai Fish, 58, of Brooklyn. For a fee of approximately 10 percent to be split between Deutsch and Fish, Deutsch agreed to launder and conceal Dwek’s funds through a charity, also known as a “gemach,” to which Deutsch had access. Deutsch admitted that Dwek informed him, prior to laundering the funds, that they were the proceeds of Dwek’s illegal business in trafficking counterfeit designer handbags.
In order to hide the source of the money, Fish or Deutsch directed Dwek to make the checks payable to the gemach known as Boyoner Gemilas Chesed (BGC) – purportedly dedicated to providing charitable donations to needy individuals. On two occasions during May 2009, Dwek provided checks made payable to BGC in the amount of $100,000 each. On each occasion, Dwek retrieved large sums of cash, totaling $90,000 or more, from Binyomin Spira, 30, of Spring Valley, N.Y., who operated an unlicensed money transmitting business out of an apartment and a bakery in Brooklyn. On the first occasion, Dwek accompanied Fish and Deutsch to the bakery. On the second occasion, Deutsch orchestrated the transaction by phone without Fish’s knowledge, and directed Dwek to meet Spira at the bakery. Once Spira had the check, he gave it to another co-conspirator who deposited it into a bank account held in the name of BGC.
Deutsch also admitted instructing Dwek to use coded language over the telephone when discussing money laundering transactions.
On July 23, 2009, Deutsch was charged with Spira in a criminal Complaint, and Fish was charged in three separate related criminal complaints. Spira pleaded guilty in November 2010 to operating an illegal money transmitting business, admitting that he had transferred thousands of dollars in cash to Fish, Deutsch and Dwek. In early 2011, Fish pleaded guilty to conspiring to commit money laundering, admitting to engaging in money laundering transactions with Dwek totaling approximately $900,000. Fish is scheduled for sentencing July 28, 2011. Spira will be sentenced on a date to be determined.
The charge to which Deutsch pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. In addition, Deutsch agreed to forfeit approximately $25,000 by the date of sentencing. Judge Pisano ordered Deutsch to remain on house arrest with electronic monitoring pending sentencing, currently scheduled for September 20, 2011.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward; and IRS – Criminal Investigation, under the direction of Special Agent in Charge Victor W. Lessoff, for the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Mark McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Stacy Biancamano Esq., Nutley, N.J.; Michael Baldassare Esq., Chatham, N.J.
TRENTON, NJ—A rabbi of Deal Synagogue in Deal, N.J., pleaded guilty today to operating an illegal money remitting business, admitting that he illegally accepted and issued checks in connection with charities he or another co-conspiring rabbi controlled, U.S. Attorney Paul J. Fishman announced.
Edmond Nahum, 58, of Deal, pleaded guilty before U.S. District Judge Joel A. Pisano to an Information charging him with operating the illegal business in conjunction with the bank accounts of Deal Kupot and Ahavat Haim Vachesed—charitable organizations in Monmouth County, N.J. that he controlled—as well as with Saul Kassin, 89, the chief rabbi of Congregation Sharee Zion in Brooklyn, N.Y., and the Magen Israel Society charitable organization located in Brooklyn that Kassin controlled.
According to documents filed in this case and statements made during Nahum’s guilty plea proceeding in Trenton federal court:
Nahum admitted that from June 2007 through December 2008, he transferred thousands of dollars in checks to Solomon Dwek, an individual he later learned was a cooperating witness with the United States. Nahum referred Dwek to Kassin and informed Dwek that Kassin would be able to move large amounts of money. Initially, Nahum accepted checks from Dwek made payable to Magen Israel Society, which Nahum passed on to Kassin. Kassin would then issue checks from Magen Israel Society, minus commission, which Nahum would provide to Dwek.
Nahum also accepted bank checks made payable to Deal Kupot and Ahavat Haim Vachesed and issued checks to another organization in New Jersey. Nahum accepted between approximately $120,000 and $200,000 in bank checks.
Nahum admitted that he knew that the checks he and Kassin issued for Dwek would not be used for charitable purposes.
Kassin pleaded guilty for his role in the unlicensed money remitting scheme and was sentenced on June 1, 2011, to two years of probation.
The charge to which Nahum pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. In addition, Nahum agreed to forfeit $175,381.33 in funds seized from the bank account of Deal Kupot by the FBI on July 23, 2009. Sentencing for Nahum is scheduled for September 22, 2011.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward; and IRS—Criminal Investigation, under the direction of Special Agent in Charge Victor W. Lessoff, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Brian R. Howe, Deputy Chief of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Justin P. Walder Esq., Roseland, N.J.; Alan Silber Esq., Roseland, N.J.
http://www.fbi.gov/newark/press-releases/2011/new-jersey-rabbi-pleads-...
Submitted by andie531 on Thu, 2011-07-07 08:24
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