Israeli banker pleads guilty in tax fraud
L.A.Daily News Wire Services Article
An Israeli banker pleaded guilty today to taking part in an elaborate tax fraud and money laundering scheme that prosecutors claim involved the leader of an Orthodox Jewish group and several Los Angeles businesses. Joseph Roth, 66, of Tel Aviv, pleaded guilty to conspiracy to commit tax fraud. U.S. District Judge George Schiavelli scheduled sentencing for Oct. 20, when Roth faces a statutory maximum term of five years' imprisonment and a $250,000 fine. Roth once worked at the Los Angeles branch of the Israel-based Mizrahi Tefahot Bank Ltd., and is the first defendant in the case to plead guilty.
Roth is one of several defendants named in a 37-count federal grand jury indictment alleging that Naftali Tzi Weisz, the 59-year-old Grand Rabbi of Spinka, promised to secretly refund between 80 percent and 95 percent of millions of dollars of contributions to several Spinka charities. The contributors could claim the full amount for tax deductions, even though they gave as little as 5 percent of the amount declared on federal income tax returns, prosecutors said. The secret refunds, or kickbacks -- as prosecutors have called them -- allegedly were laundered through third parties. Spinka is the name of a Hasidic sect within Orthodox Judaism. The group is named for the European town where it originated along the border of Hungary and Romania. Trial is set for Sept. 9.
After today's hearing, Roth smiled and shook the hand of the case's lead prosecutor, Assistant U.S. Attorney Daniel O'Brien. Roger J. Rosen, one of Roth's attorneys, told reporters he was pleased with how the case has been resolved, but he had no comment on whether Roth was cooperating with the U.S. Attorney's Office.
Roth -- who has been in federal custody since late last year because he was deemed a flight risk -- helped American contributors get loans from Mizrahi Tefahot Bank, so the money could be used in the United States, prosecutors said. The contributors also could hire Spinka to help secretly repatriate the money into the United States in exchange for an additional money-laundering fee after the money was placed in secret accounts at the bank, prosecutors allege.
In addition to Roth's guilty plea, another prominent defendant in the case, Weisz's personal assistant, Gabbai Moshe Zigelman, 60, of Brooklyn, N.Y., has agreed to plead guilty to one count of conspiracy to commit tax fraud, according to court documents.
Zigelman is alleged to have played an integral role in the scheme, paying kickbacks and laundering large amounts of contributions from "R.K." -- a participant in the scheme who turned into a government informant once he ran into problems with federal authorities. One method Weisz and Zigelman allegedly used to issue the secret refunds was by an underground money transfer network involving other parties, including businesses in and around downtown Los Angeles' jewelry district. One business was run by 60-year-old Los Angeles resident Moshe Arie Lazar. Other defendants in the case include Yaacov Zeivald, 43, of Valley Village, Los Angeles residents Yosef Nachum Naiman, 55, and 43-year-old Alan Jay Friedman and Tel Aviv attorney Jacob Ivan Kantor.
Five Spinka charities were also named as defendants: Yeshiva Imrei Yosef, Yeshivath Spinka, Central Rabbinical Seminary, Machne Sva Rotzohn and Mesivta Imrei Yosef Spinka. The charities are alleged to have used fraudulent receipts for bogus charitable contributions and benefited from fees charged for transfers of funds as part of the money laundering conspiracy.
Comments Showing posts 1 - 12 of 12 .......
Preach The Truth.... Glendale, CA Good job!........... They need to focus on all the hocus-pocus Armenian church scams here in Glendale/Tujunga, CA now. It's getting rediculous how all these parasites and leeches keep sucking the blood dry of our once-great nation. whatever
Minneapolis, MN ...........Wow, I can't believe that! Not the fact that he did it. The fact that he plead guilty.
Jew Watch Columbus, OH ..........Jews are disgusting..I mean they got white collar crime all over them. It is a pretty much a done deal that they knew of 9/11 before the attack actually occurred. The question is, how did Jews NOT know it was going to happen? abe Los Angeles, CA we all know how jews make money in the us is like big mafia
Israel1948 .................“Am Chai Yisra'el!”
Jew Watch wrote:................ Jews are disgusting..I mean they got white collar crime all over them. It is a pretty much a done deal that they knew of 9/11 before the attack actually occurred. The question is, how did Jews NOT know it was going to happen? And neo nazis such as yourself have blue collar crime. Would you rather have a few bucks taken away, or your life? If you say money, then you're one cheap Jew lol.
Jew Watch wrote: Jews are disgusting......I mean they got white collar crime all over them. It is a pretty much a done deal that they knew of 9/11 before the attack actually occurred. The question is, how did Jews NOT know it was going to happen? Hmmm, lets count how many Jews are in American prison. Now, lets count how many other people are in American prison. There are so many whites in prison, they needed to create the "nazi low riders" and "aryan brotherhood" just so the blacks and hispanic don't beat their asses. Do you see any Jewish gangs in prison? You don't? Really? Who would have guessed.
Abe Los Angeles, CA ..........here are some names mousa shaya,abe camaro,jo.shabany.koby,from koby windows joshi attia,and sam cohen, some jews some persians but all the same
**** Praise Jesus Los Angeles, CA........ There we go again. Los Angeles, CA Quit picking on the Jews they are good folks with big hearts. They are even fully accepting of gays who stood side by side with them in the concentration camps and went to the gas chambers for their families horrific deaths. Take a visit to the museum of tolerance here in Los Angeles and maybe you might get some compassion. I cannot believe some of the racist tones I have read here on this blog. You bigots need to really get a life.
jojo Garland, TX..........
Encino guy Los Angeles, CA.......... there are not jews in jail because they don't take a gun and rob $100 at the liquor store, they just cheat on the system and is hard to catch them they send millions to israel just to ''plant trees'' im not racist im just tellin the truth................