Borough Park, Brooklyn NY – Rabbi and Assistant Are Arrested in Tax Scheme.

20 12 2007

Borough Park, Brooklyn NY – A rabbi of a Brooklyn-based Hasidic sect, was arrested Wednesday [as reported on VIN News] with his executive assistant in Los Angeles on charges that they arranged and profited from inflated charitable donations that saved the donors millions of dollars in federal income taxes

Under the scheme, officials said, the Rabbi spent more than a decade soliciting contributions for charities by promising to secretly refund as much as 95 percent of the money to the donors. The donors could then claim tax deductions on the full amount while paying as little as 5 percent, officials said.

They had taken in some $8.7 million in contributions solicited Of that, they held on to almost $750,000, the indictment said.

The case was broken, in part, with the help of a secret cooperating witness, a Los Angeles businessman identified in the indictment only as R. K. In one year alone, before he turned state’s evidence and agreed to record his former colleagues secretly, R. K. contributed about $1.7 million to the Spinka sect’s scheme. [nytimes] Vosizneias



One response

20 12 2007
Daniel Goldman

Where’s the link to the NYT article?

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