Rabbi Menachem Youlus, 50, admitted he had simply made up claims that he personally found and restored Torah scrolls in Europe and Israel.
Prosecutors also said he defrauded the charity he founded and its donors of $862,000 (£545,000).
As part of a plea deal, Youlus faces up to five years in prison.
"I know what I did was wrong, and I deeply regret my conduct," Youlus said in court on Thursday.
According to a criminal complaint, Youlus claimed to have scoured Europe in search of lost or endangered Torah scrolls - the holy Jewish text containing the Hebrew scriptures of the Old Testament.
He distributed the Torahs among American synagogues and communities, sometimes at inflated rates, and put almost one-third of the $1.2m proceeds into his personal accounts.
At a 2004 Torah dedication, Youlus wrote: "I guess you could call me the Jewish Indiana Jones," the prosecutors alleged.
He spent some of it on private school tuition for his children and on personal expenses, prosecutors said.
Youlus, who owns a Jewish bookstore in Wheaton, Maryland, told one prospective buyer that he had personally retrieved parts of a scroll from a metal box at Auschwitz.
If fact, authorities said Youlus rarely travelled abroad during the years he had claimed to go Torah-hunting.
Lawyer Benjamin Brafman said he would seek leniency at sentencing, describing Youlus as "a good man with the best of intentions who ultimately strayed into fraudulent conduct that he now accepts full responsibility for".
Source: BBC News February 3, 2012
Comments
Re: 'Jewish Indiana Jones' admits Torah fraud
A bit more on the legendary Auschwitz Torah:
Torah being restored by Rabbi Menachem Youlus. (Photo: Save a Torah)
Re: 'Jewish Indiana Jones' admits Torah fraud
These jews were spoken about in Quran:
Re: 'Jewish Indiana Jones' admits Torah fraud
When will they learn? If you want to steal, swindle, rob and defraud, then do it to the GOYIM. That way, if you are caught, you are excused, and even praised. If you do it to other Jews, then you are finished. Consider Bernie Madoff.
Torah fraud win-win & Madoff mysteries
I think there's probably more to the story somewhere.
Is the exposure bad for Jews? Yes. Therefore it shouldn't have happened according to their rules
Them legendary Torahs were fine fodder for the group Holocaust psychosis, especially in these trying times of increasing "denial."
So, the Rabbi made a nice profit from some much wealthier members of the crime gang; think of it as in-house charity.
I remember DBS-Rafeeq discussing the Madoff scam and Rafeeq saying that by his confession Madoff had precluded a proper investigation. Lots of real questions killed in one blow. There was also reference somewhere to Madoff's victims being eligible for some gov't payout.
Here's a bit on that:
NEW YORK (CNNMoney.com) -- Madoff victims might finally get their hands on their stolen billions.
By Aaron Smith, staff writerJanuary 13, 2011
The court-appointed trustee trying to recover Madoff's loot has brought dozens of lawsuits but so far hasn't been able to compensate victims. That might soon change. A court hearing is set for Jan. 13 that could unlock more than one-third of the $20 billion in stolen money.
Mystery of Madoff's rapid confession
The probable explanation is that Madoff hopes to take the bullet for his family and colleagues. Peter Henning, a former fraud prosecutor turned law professor at Wayne State University in Detroit, says: "I think he's protecting his family. Any plea deal would definitely have required him to implicate others."