Web site:
The Planned Giving Design Center, LLCs group location on the PGDC website.
Phone:
704.698.4050
Citations: 07-164
Date: Dec. 19, 2007
BROOKLYN RABBI AND SEVERAL ASSOCIATES CHARGED IN SOPHISTICATED
TAX FRAUD AND MONEY LAUNDERING SCHEME
The Grand Rabbi of Spinka, a religious group within Orthodox Judaism, was arrested this morning along with several associates charged in an indictment that alleges a wide-ranging conspiracy to defraud U.S. government agencies, to operate a underground money transfer system and to launder money through an Israeli bank.
Grand Rabbi Naftali Tzi Weisz, 59, and Gabbai Moshe E. Zigelman, 60, both of Brooklyn, New York, were indicted yesterday by a federal grand jury in Los Angeles. The 37-count indictment, which was unsealed this morning, alleges that Weisz and Zigelman solicited millions of dollars of contributions to several Spinka charitable organizations by promising to secretly refund up to 95 percent of the contributions. In this manner, the contributors could claim as tax deductions the full amounts of their contributions, while actually having contributed as little as 5 percent of the amount they would declare on their federal income tax returns.
Weisz and Zigelman would surreptitiously refund up to 95 percent of the contributions through several methods, according to the indictment. In some cases, the contributors received cash payments through an underground money transfer network involving various parties, some of whom operated businesses in and around the Los Angeles jewelry district. Several participants in the underground money transfer network were also indicted yesterday and arrested this morning. They are: Yaacov Zeivald, 43, of Valley Village, California; Yosef Nachum Naiman, 55, of Los Angeles; and Alan Jay Friedman, 43, all of Los Angeles. Another man allegedly involved in the underground money transfer network, Moshe Arie Lazar, 60, of Los Angeles, was not arrested and is believed to be in Israel.
A second method used to reimburse contributors was wire transfers from Spinka-controlled entities into accounts secretly held at a bank in Israel. The accounts were established with the assistance of an international accounts manager at the bank, Joseph Roth, 66, of Tel Aviv, and Tel Aviv attorney Jacob Ivan Kantor, 71, both of whom are charged in the indictment. Roth allegedly assisted contributors in the United States obtain loans from the Los Angeles branch of the Israeli bank, loans that were secured by the funds in the secret bank accounts in Israel, so the contributors could have the use of the funds in the United States. After their money was placed in the secret accounts at the Israeli bank, contributors also could hire Spinka to help secretly repatriate the money into the United States in exchange for an additional money laundering fee, the indictment alleges. Roth was arrested this morning in Los Angeles. Kantor has not been arrested and is believed to be in Israel.
The indictment charges Weisz and Zigelman with one count of conspiracy to defraud the Internal Revenue Service and other crimes, 19 counts of mail fraud, one money laundering conspiracy count, 11 counts of international money laundering, and one count of operating an illegal money remitting business. Zigelman is also charged with two counts of aiding in the preparation of fraudulent income tax returns. Roth is charged in both conspiracy counts; several mail fraud counts; and several international money laundering counts. Kantor is charged in both of the conspiracy counts and several international money laundering counts. Zeivald, Lazar, Naiman, and Friedman are charged in the main conspiracy count and with operating an illegal money remitting business. Zeivald is also named in one mail fraud count. If convicted, all of the defendants face substantial federal prison sentences.
In the money laundering conspiracy charge, five Spinka charitable organizations -- Yeshiva Imrei Yosef, Yeshivath Spinka, Central Rabbinical Seminary, Machne Sva Rotzohn, and Mesivta Imrei Yosef Spinka, all based in Brooklyn -- are named as defendants. These entities allegedly issued fraudulent receipts for bogus charitable contributions and were the beneficiaries of fees charged for transfers of funds as part of the money laundering conspiracy.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Weisz, Zigelman, Roth, Zeivald, Naiman and Friedman were all arrested in the Los Angeles area this morning and are scheduled to make their initial appearances in United States District Court this afternoon.
The case is part of an ongoing investigation being conducted by the Federal Bureau of Investigation and IRS-Criminal Investigation.
United States v. Naftali Tzi Weisz et al.; No. 2:06-cr-00775
Full Text:
Date: Dec. 18, 2007
UNITED STATES OF AMERICA,
Plaintiff,
v.
NAFTALI TZI WEISZ, MOSHE E. ZIGELMAN,
JOSEPH ROTH, AKA YOSSIE ROTH,
JACOB IVAN KANTOR, YAACOV ZEIVALD,
AKA YANKEL ZEIVALD,
MOSHE ARIE LAZAR, AKA MARVIN LAZAR,
YOSEF NACHUM NAIMAN, ALAN JAY FRIEDMAN,
YESHIVA IMREI YOSEF, AKA YESHIVA IMREI YOSEF SPINKA,
YESHIVATH SPINKA, AKA YESHIVAT SPINKA, AKA YESHIVA SPINKA,
CENTRAL RABBINICAL SEMINARY, MACHNE SVA ROTZOHN,
MESIVTA IMREI YOSEF SPINKA, AKA MESIVTA IMREI YOSEF,
AKA KEREN HALBOSHO D MESIVTA IMREI YOSEF SPINKA,
Defendants.
The Grand Jury charges:
At all times relevant to this First Superseding Indictment:
1. Spinka was a religious group within Orthodox Judaism. Spinka established a variety of charitable organizations (each a "Spinka charitable organization") which represented themselves to be public charities, contributions to which could be tax deductible under the Internal Revenue Code.
2. Defendant YESHIVA IMREI YOSEF, aka Yeshiva Imrei Yosef Spinka, was a Spinka charitable organization, with headquarters located at 5801 15th Avenue, Brooklyn, New York.
3. Defendant YESHIVATH SPINKA, aka Yeshiva Spinka, was a Spinka charitable organization, with headquarters located at 5801 15th Avenue, Suite 101, Brooklyn, New York.
4. Defendant CENTRAL RABBINICAL SEMINARY was a Spinka charitable organization, with headquarters located at 1462 56th Street, Brooklyn, New York.
5. Defendant MACHNE SVA ROTZOHN was a Spinka charitable organization, with headquarters located at 5801 15th Avenue, Brooklyn, New York.
6. Defendant MESIVTA IMREI YOSEF SPINKA, aka Mesivta Imrei Yosef, aka Keren Halbosho D Mesivta Imrei Yosef Spinka, was a Spinka charitable organization, with headquarters located at 1460 56th Street, Brooklyn, New York.
7. Defendant NAFTALI TZI WEISZ ("WEISZ") was the Grand Rabbi, or spiritual leader, of Spinka and an agent of Spinka and of defendants YESHIVA IMREI YOSEF, YESHIVATH SPINKA, CENTRAL RABBINICAL SEMINARY, MACHNE SVA ROTZOHN, and MESIVTA IMREI YOSEF SPINKA.
8. Defendant MOSHE E. ZIGELMAN ("ZIGELMAN") was a Gabbai, or executive assistant, to Grand Rabbi WEISZ and an agent of Spinka and of defendants YESHIVA IMREI YOSEF, YESHIVATH SPINKA, CENTRAL RABBINICAL SEMINARY, MACHNE SVA ROTZOHN, and MESIVTA IMREI YOSEF SPINKA.
9. Defendants WEISZ and ZIGELMAN regularly solicited and accepted charitable contributions on behalf of defendants YESHIVA IMREI YOSEF, YESHIVATH SPINKA, CENTRAL RABBINICAL SEMINARY, MACHNE SVA ROTZOHN, MESIVTA IMREI YOSEF SPINKA, and other Spinka charitable organizations.
10. Defendant JOSEPH ROTH ("ROTH"), aka Yossie Roth, was an international accounts manager with a foreign bank headquartered in Israel with a branch in Los Angeles, California (the "Israeli Bank"). Defendant ROTH solicited and routed deposits into accounts of the Israeli Bank in Israel from clients in the United States and offered loan products on behalf of the Israeli Bank and its Los Angeles branch to clients in the United States and elsewhere.
11. Defendant JACOB IVAN KANTOR ("KANTOR") was an attorney practicing in Tel Aviv, Israel.
12. Defendant YAACOV ZEIVALD ("ZEIVALD"), aka Yankel Zeivald, was a self-described professional scribe residing in Valley Village, California.
13. Defendant MOSHE ARIE LAZAR ("LAZAR") was the owner of Lazar Diamonds, a business located in Los Angeles, California.
14. Defendant YOSEF NACHUM NAIMAN, was the owner of Shatz Et Naiman, dba Jerusalem Tours, a business located in Los Angeles, California
15. Defendant ALAN JAY FRIEDMAN was a businessman who resided in Los Angeles, California.
16. R.K. was a businessman who resided in the Central District of California. R.K. was a member of the conspiracy from 1996 through October 2004. Beginning in or about October 2004, R.K. became a cooperating witness for the government.
17. Under New York law, "No person shall engage in the business . . . of receiving money for transmission or transmitting the same, without a license. . . ." Violations of this statute are punishable as a misdemeanor.
18. Under California law, "no person shall engage in the business of receiving money for the purpose of transmitting the same or its equivalent to foreign countries without first obtaining a license. . . ." Violations of this statute are punishable as a misdemeanor.
19. Under United States law, "each money services business (whether or not licensed as a money services business by any State) must register with the Department of the Treasury. . . ."
20. None of defendants WEISZ, ZIGELMAN, ZEIVALD, LAZAR, NAIMAN, or FRIEDMAN, nor any organization owned or controlled by any of these defendants, including defendants YESHIVA IMREI YOSEF, YESHIVATH SPINKA, CENTRAL RABBINICAL SEMINARY, MACHNE SVA ROTZOHN, MESIVTA IMREI YOSEF SPINKA, other Spinka charitable organizations, Lazar Diamonds, or Shatz Et Naiman, dba Jerusalem Tours, was licensed or registered as a money transmitting business with California, New York, or the United States Department of Treasury.
21. Paragraphs 1 through 20 of this First Superseding Indictment are hereby realleged and incorporated as though fully set forth below.
A. OBJECTS OF THE CONSPIRACY
22. Beginning in or about 1996 and continuing through in or about December 2007, in Los Angeles County, within the Central District of California, and elsewhere, defendants NAFTALI TZI WEISZ, MOSHE E. ZIGELMAN, JOSEPH ROTH, JACOB IVAN KANTOR, YAACOV ZEIVALD, MOSHE ARIE LAZAR, YOSEF NACHUM NAIMAN, and ALAN JAY FRIEDMAN, together with R.K. and others known and unknown to the Grand Jury, knowingly combined, conspired, and agreed:
b. to aid, assist, procure, counsel, and advise the preparation and presentation to the IRS of United States Individual Income Tax Return Form 1040s, which were false and fraudulent as to material matters, in violation of Title 26, United States Code, Section 7206(2);
c. to use the United States mails and private and commercial interstate carriers to execute a scheme to defraud the IRS and the SEC as to material matters, in violation of Title 18, United States Code, Section 1341;
d. to use interstate wire and radio communications to execute a scheme to defraud the IRS and the SEC as to material matters, in violation of Title 18, United States Code, Section 1343;
e. to conduct, control, manage, supervise, direct, and own all or part of an unlicensed money transmitting business, in violation of Title 18, United States Code, Section 1960.
23. The objects of the conspiracy were carried out in the manner and by the means described below, among others.
24. To help solicit charitable contributions on behalf of Spinka charitable organizations, including Yeshiva Imrei Yosef, Yeshivath Spinka, Central Rabbinical Seminary, Machne Sva Rotzohn, and Mesivta Imrei Yosef Spinka, defendants WEISZ and ZIGELMAN would secretly refund to certain Spinka contributors (collectively the "conspiring contributors") a significant portion, typically 80 to 95 percent, of their nominal contributions to Spinka charitable organizations. In this manner, the conspiring contributors could fraudulently claim as tax deductions the full amounts of their nominal contributions to the Spinka charitable organizations, while having actually contributed as little as 5 to 20 percent of the amounts of the claimed deductions. The conspiring contributors could also use the fraudulent Spinka charitable contributions to promote other unlawful activity including, in the case of co-conspirator R.K., the fraudulent concealment of assets from the SEC.
25. Co-conspirator R.K. and other conspiring contributors would mail or send by private or commercial carrier charitable contribution checks to defendant ZIGELMAN and others for the benefit of Yeshiva Imrei Yosef, Yeshivath Spinka, Central Rabbinical Seminary, Machne Sva Rotzohn, Mesivta Imrei Yosef Spinka, and other Spinka charitable organizations.
26. Defendants WEISZ and ZIGELMAN would cause charitable contribution receipts to be mailed by defendants Yeshiva Imrei Yosef, Yeshivath Spinka, Central Rabbinical Seminary, Machne Sva Rotzohn, Mesivta Imrei Yosef Spinka, and other Spinka charitable organizations to R.K. and other conspiring contributors in the full amounts of their nominal contributions to the respective Spinka charitable organizations.
27. Defendants WEISZ and ZIGELMAN would cause a large portion of the conspiring contributors' contributions, typically 80 to 95 percent, to be secretly returned to the conspiring contributors through a variety of means, including some combination of the following:
b. wire or other transfers into foreign bank accounts secretly maintained by the conspiring contributors in the names of nominees, including transfers into bank accounts at the Israeli Bank in Tel Aviv, Israel in the name of nominee entities established for the benefit of co-conspirator R.K. by defendants ROTH and KANTOR.
28. The conspiring contributors would file U.S. income tax returns by mail and by private or commercial carrier claiming charitable deductions in the full amounts of their nominal contributions to the Spinka charitable organizations, without factoring in the approximately 80 to 95 percent of those contributions that had been secretly returned to them.
29. Defendants WEISZ and ZIGELMAN would use an underground money transfer network to refund to the conspiring contributors large portions of their nominal contributions to the Spinka charitable organizations.
30. Defendants WEISZ, ZIGELMAN, ZEIVALD, LAZAR, NAIMAN, FRIEDMAN, and others would conduct, control, manage, supervise, direct, and own the underground money transfer network, which consisted of a number of individuals at many different locations who were willing to pay the debts of others whenever they had available funds. For example, if person A in New York owed money to person B in Los Angeles, and person C had available funds in Los Angeles, person A would direct person C to make a cash distribution to person B. Accounts resulting from debts and transfers would then be reconciled based upon the expectation that additional transactions would be carried out in the future, or through the smuggling of cash within the underground money transfer network. This system made possible transfers of large amounts of cash without any transmission of funds being made through legitimate banking channels.
31. At the direction of defendants WEISZ and ZIGELMAN, to Implement the underground money transfer network, defendants ZEIVALD, LAZAR, NAIMAN, FRIEDMAN, and others would deliver cash to each other, to R.K., and to other conspiring contributors.
32. In order to assist co-conspirator R.K. in secretly receiving payments from Spinka charitable organizations:
b. defendant ROTH would cause accounts to be opened at the Israeli Bank in Tel Aviv, Israel in the name of the foreign nominee entities ("the R.K. foreign nominee accounts").
33. Defendants WEISZ, ZIGELMAN, and ROTH would cause monies from the Spinka charitable organizations to be transferred into the R.K. foreign nominee accounts through wire transfers, the underground money transfer network, or a combination of both.
34. To enable co-conspirator R.K. to have ready use of such funds in the United States, defendant ROTH and others would cause the Israeli Bank to provide a loan to R.K. in Los Angeles ("the domestic loan") secured by the assets held in a R.K. foreign nominee account in Israel.
35. Eventually, the funds in the R.K. foreign nominee accounts in Israel would be transferred to or for the benefit of co-conspirator R.K. in Los Angeles. To do so:
b. In exchange for a further fee, defendants WEISZ and ZIGELMAN would cause the funds to be transferred from the Spinka foreign nominee accounts to the Israeli Bank in Los Angeles to close out the domestic loan, or to be transferred through the underground money transfer network to pay cash to R.K.
36. In furtherance of the conspiracy and to accomplish its objects, defendants WEISZ, ZIGELMAN, ROTH, KANTOR, ZEIVALD, LAZAR, NAIMAN, and FRIEDMAN, co-conspirator R.K., and other co-conspirators known and unknown to the Grand Jury committed and willfully caused others to commit the following overt acts, among others, in the Central District of California and elsewhere:
Overt Act No. 1; In or about the Summer of 1998, defendant KANTOR and co-conspirator R.K. established Capital Realty Associates, Inc., a Nevis corporation ("CRT").
Overt Act No. 2: In or about the Summer of 1998, defendant ROTH and co-conspirator R.K. caused a bank account to be opened at the Israeli Bank in Tel Aviv, Israel in the name of CRT (the "CRT account").
Overt Act No. 3: On or about March 19, 1999, co-conspirator R.K. caused a check to be issued in the amount of $150,000 for the benefit of Yeshivath Spinka.
Overt Act No. 4: On or about March 19, 1999, defendant; ZIGELMAN caused a charitable receipt to be issued by Yeshivath Spinka to co-conspirator R.K.'s wife reflecting the receipt of a charitable contribution in the amount of $150,000.
Overt Act No. 5: On or about March 24, 1999, co-conspirator R.K. caused a check to be issued in the amount of $45,000 for the benefit of Yeshivath Spinka.
Overt Act No..6: On or about March 24, 1999, defendant ZIGELMAN caused a charitable receipt to be issued by Yeshivath Spinka to co-conspirator R.K.'s wife reflecting the receipt of a charitable contribution in the amount of $45,000.
Overt Act No. 7: On or about June 23, 1999, co-conspirator R.K. caused a check to be issued in the amount of $100,000 for the benefit of Yeshivath Spinka.
Overt Act No. 8: On or about June 30, 1999, defendant ZIGELMAN caused a charitable receipt to be issued by Yeshivath Spinka to co-conspirator R.K.'s wife reflecting the receipt of a charitable contribution in the amount of $100,000.
Overt Act No. 9: On or about September 14, 1999, co-conspirator R.K. caused a check to be issued in the amount of $100,000 for the benefit of Yeshivath Spinka.
Overt Act No. 10: On or about September 14, 1999, co-conspirator R.K. caused a check to be issued in the amount of $5,000 for the benefit of Yeshivath Spinka.
Overt Act No. 11: On or about September 15, 1999, defendant ZIGELMAN caused a charitable receipt to be issued by Yeshivath Spinka to co-conspirator R.K.'s wife reflecting the receipt of a charitable contribution in the amount of $105,000.
Overt Act No. 12: On or about December 29, 1999, co-conspirator R.K. caused a check to be issued in the amount of $55,000 for the benefit of Yeshivath Spinka.
Overt Act No. 13: On or about December 29, 1999, defendant ZIGELMAN caused a charitable receipt to be issued by Yeshivath Spinka to co-conspirator R.K.'s wife reflecting the receipt of a charitable contribution in the amount of $55,000.
Overt Act No. 14: During the period 1998 through 2001, defendant ZIGELMAN caused funds to be deposited into the CRT account at the Israeli Bank in Tel Aviv, Israel to secretly reimburse a substantial portion of R.K.'s contributions to the Spinka charitable organizations.
Overt Act No. 15: On or about October 17, 2000, co-conspirator R.K. filed an Internal Revenue Service ("IRS") Form 1040 individual income tax return for the calendar year 1999, in which he fraudulently claimed deductions for the full amount of his nominal contributions to the Spinka charitable organizations, without accounting for the portions of those contributions that had been returned to him.
Overt Act No. 16: On or about December 15, 2000, co-conspirator R.K. obtained a loan at the Israeli Bank in Los Angeles in the name of HCH Investments, LLC which was secured by assets in the CRT account at the Israel Bank in Tel Aviv, Israel ("the HCH Investments loan").
Overt Act No. 17: On or about December 20, 2000, co-conspirator R.K. caused a check to be issued in the amount of $50,000 for the benefit of Yeshivath Spinka.
Overt Act No. 18: On or about January 4, 2001, defendant ZIGELMAN caused a $50,000 check issued for the benefit of Yeshivath Spinka to be deposited into an account at Chase Manhattan Bank.
Overt Act No. 19: On or about October 16, 2001, co-conspirator R.K. filed an IRS Form 1040 individual income tax return for the calendar year 2000, in which he fraudulently claimed deductions for the full amount of his nominal contributions to the Spinka charitable organizations, without accounting for the portions of those contributions that had been returned to him.
: On or about January 29, 2003, defendants ZIGELMAN and ROTH and co-conspirator R.K. caused $190,000 to be wired from the CRT account at the Israeli Bank in Tel Aviv, Israel to a Spinka nominee account in the name of "C. Glantz" ("the Glantz account") at Bank Hapaolim in Bnei Brak, Israel ("BH-Bnei Brak").
Overt Act No. 21: On or about January 29, 2003, defendant ZIGELMAN and co-conspirator R.K. caused $190,000 to be wired from a Spinka nominee account in the name of Clearview International Investments ("the Clearview account") at BH-Bnei Brak, Israel to pay down a portion of the HCH Investments loan at the Los Angeles branch of the Israeli Bank.
Overt Act No. 22: On or about January 29, 2003, defendants ZIGELMAN and ROTH and co-conspirator R.K. caused $160,000 to be wired from the CRT account at the Israeli Bank in Tel Aviv, Israel to the Glantz account at BH-Bnei Brak.
Overt Act No. 23: On or about January 29, 2003, defendant ZIGELMAN and co-conspirator R.K. caused $160,000 to be wired from the Clearview account at BH-Bnei Brak to pay down a portion of the HCH Investments loan at the Los Angeles branch of the Israeli Bank.
Overt Act No. 24: On or about February 7, 2003, defendants ZIGELMAN and ROTH and co-conspirator R.K. caused $400,000 to be wired from the CRT account at the Israeli Bank in Tel Aviv, Israel to the Glantz account at BH-Bnei Brak.
Overt Act No. 25: On or about February 7, 2003, defendant ZIGELMAN and co-conspirator R.K. caused $400,000 to be wired from the Clearview account at BH-Bnei Brak to pay down a portion of the HCH Investments loan at the Los Angeles branch of the Israeli Bank.
Overt Act No. 26: On or about February 12, 2003, defendants ZIGELMAN and ROTH and co-conspirator R.K. caused $500,000 to be wired from the CRT account at the Israeli Bank in Tel Aviv, Israel to the Glantz account at BH-Bnei Brak.
Overt Act No. 27: On or about February 12, 2003, defendant ZIGELMAN and co-conspirator R.K. caused $500,000 to be wired from the Clearview account at BH-Bnei Brak to pay down a portion of the HCH Investments loan at the Los Angeles branch of the Israeli bank.
Overt Act No. 28: On or about March 12, 2003, defendants ZIGELMAN and ROTH and co-conspirator R.K. caused $150,000 to be wired from the CRT account at the Israeli Bank in Tel Aviv, Israel to the Glantz account at BH-Bnei Brak.
Overt Act No. 29: On or about March 12, 2003, defendant ZIGELMAN and co-conspirator R.K. caused $150,000 to be wired from the Clearview account at BH-Bnei Brak to pay down a portion of the HCH Investments loan at Los Angeles branch of the Israeli Bank.
Overt Act No. 30: On or about March 20, 2003, defendants ZIGELMAN and ROTH and co-conspirator R.K. caused $250,000 to be wired from the CRT account at the Israeli Bank in Tel Aviv, Israel to the Glantz account at BH-Bnei Brak.
Overt Act No. 31: On or about March 20, 2003, defendant ZIGELMAN and co-conspirator R.K. caused $250,000 to be wired from the Clearview account at BH-Bnei Brak to pay down a portion of the HCH Investments loan at the Los Angeles branch of the Israeli Bank.
Overt Act No. 32: On or about March 20, 2003, defendants ZIGELMAN and ROTH and co-conspirator R.K. caused $60,000 to be wired from the CRT account at the Israeli Bank in Tel Aviv, Israel to an account in the name of Yeshiva Imrei Yosef at the First International Bank of Israel, in Bnei Brak, Israel ("FIB-Bnei Brak").
Overt Act No. 33: On or about May 28, 2003, co-conspirator R.K. caused $46,139.75 to be wired from the CRT account at the Israeli Bank in Tel Aviv, Israel to pay down the HCH Investments loan at the Los Angeles branch of the Israeli Bank in its entirety.
Overt Act No. 34: On or about August 14, 2003, defendant KANTOR prepared legal documents through which co-conspirator R.K. resigned as a director of CRT and transferred his shares of CRT to a third party.
Overt Act No. 35: On or about August 15, 2003, defendant KANTOR prepared legal documents dissolving CRT as a corporation.
Overt Act No. 36: On or about October 2, 2003, defendant KANTOR notified the Israeli Bank that the CRT account should be closed.
Overt Act No. 37: On or about December 9, 2003, co-conspirator R.K. sent defendants ROTH and KANTOR a hand-written request, asking that all security pledge documents for the HCH Investments loan in Los Angeles be transferred out of the United States to Israel.
Overt Act No. 38: On or about December 20, 2004, defendant ZIGELMAN asked R.K. how much R.K. still owed of the fee for routing funds from Israel to the United States through the Spinka nominee account ("the fee").
Overt Act No. 39: On or about February 16, 2005, defendant ZIGELMAN informed R.K. that "according to your papers that I faxed you, the Rebbe [defendant WEISZ] wrote there that the fee is seven and a half points."
Overt Act No. 40: On or about February 16, 2005, defendant ZIGELMAN stated to R.K. that the fee was $1,650,000 times 7.5%, or $123,750, and acknowledged that $60,000 had already been paid by R.K. toward that fee.
Overt Act No. 41: On or about February 16, 2005, defendant WEISZ told R.K. that he should send defendant ZIGELMAN $27,750 toward the fee and that they would deal with the remaining $36,000 later.
Overt Act No. 42: On or about February 22, 2005, defendant ZIGELMAN mailed to R.K. a charitable contribution receipt on behalf of Yeshiva Imrei Yosef acknowledging the receipt of $27,750 and stating that "No goods were rendered in exchange for this contribution. All contributions are tax deductible."
Overt Act No. 43: On or about February 23, 2005, defendant ZIGELMAN caused the deposit of a $27,750 check made payable to Yeshiva Imrei Yosef in partial payment of the fee.
Overt Act No. 44: On or about April 11, 2005, defendant ZIGELMAN caused the deposit of a $36,000 check made payable to Central Rabbinical Seminary in partial payment of the fee.
Overt Act No. 45: On or about April 20, 2005, defendant ZIGELMAN mailed to R.K. a charitable contribution receipt on behalf of Central Rabbinical Seminary acknowledging the receipt of $36,000 and stating that "No goods or services were rendered in exchange for this contribution. All contributions are tax deductible."
Overt Act No. 46: On or about May 11, 2005, defendant ZIGELMAN caused the deposit of a $10,000 check from R.K. made payable to Yeshiva Imrei Yosef.
Overt Act No. 47: On or about May 17, 2005, defendant ZIGELMAN caused an unknown individual to drop off $9,500 in cash for R.K.
Overt Act No. 48: On or about May 30, 2005, defendant ZIGELMAN caused the preparation of a charitable contribution receipt on behalf of Yeshiva Imrei Yosef acknowledging the receipt of $10,000 from R.K.
Overt Act No. 49: On or about June 10, 2005, defendant ZIGELMAN caused the deposit of a $25,000 check from R.K. made payable to Central Rabbinical Seminary.
Overt Act No. 50: On or about June 17, 2005, defendant ZIGELMAN caused the preparation of a charitable contribution receipt on behalf of Central Rabbinical Seminary acknowledging the receipt of $25,000 from R.K.
Overt Act No. 51: On or about June 23, 2005, defendant LAZAR handed R.K. $15,000 in cash.
Overt Act No. 52: On or about June 28, 2005, defendant NAIMAN handed R.K. $5,000 in cash.
Overt Act No. 53: On or about August 9, 2005, defendant NAIMAN handed R.K. $3,750 in cash.
Overt Act No. 54: On or about September 16, 2005, defendant ZIGELMAN caused the deposit of a $50,000 check from R.K. issued for the benefit of Machne Sva Rotzohn.
Overt Act No. 55: On or about September 22, 2005, defendant ZIGELMAN caused the preparation of a charitable contribution receipt on behalf of Machne Sva Rotzohn acknowledging the receipt of $50,000 from R.K.
Overt Act No. 56: On or about October 14, 2005, defendant NAIMAN handed R.K. $47,500 in cash.
Overt Act No. 57: On or about November 30, 2005, defendant ZIGELMAN caused the deposit of a $50,000 check from R.K. issued for the benefit of Mesivta Imrei Yosef Spinka.
Overt Act No. 58: On or about November 30, 2005, defendant ZIGELMAN caused the preparation of a charitable contribution receipt on behalf of Mesivta Imrei Yosef Spinka acknowledging the receipt of $50,000 from R.K.
Overt Act No. 59: On or about January 12, 2006, defendant KANTOR informed R.K. that he would prepare documents incorporating Bedford Holdings & Investments, Ltd. ("Bedford Holdings") and that the documents pertaining to Bedford Holdings would be "held in confidence by the bank and can only be disclosed after a complicated procedure by the Bank of Israel if there is evidence that the monies result from criminal activities, such as drugs. Tax matters are not an issue."
Overt Act No. 60: On or about January 13, 2006, defendant LAZAR handed R.K. $47,500 in cash.
Overt Act No. 61: On or about January 26, 2006, defendant KANTOR presented R.K. with documents incorporating Bedford Holdings, a Nevis corporation.
Overt Act No. 62: On or about January 26, 2006, defendant KANTOR told R.K. that under the current arrangement, R.K. would likely have to report on his annual tax return his control of a foreign account in Israel "which we don't want to say."
Overt Act No. 63: On or about January 26, 2006, defendant KANTOR told R.K. that he could "solve all your problems" by creating a New Zealand trust administered by a company in Switzerland and that while the trust would "from the theoretical side" own the assets of Bedford Holdings, as a practical matter the trust would only disburse funds in accordance with R.K.'s wishes.
Overt Act No. 64: On or about April 3, 2006, defendant ROTH told R.K. that the trust would "technically own it" and "[i]f the Swiss company is dishonest, they can take your money and run away," but that "Ivan [KANTOR] knows them for many, many years" and that "this is the business they do and they're reliable."
Overt Act No. 65: On or about April 6, 2006, in response to R.K.'s statement that he wanted to transfer money to a foreign trust so that the SEC would believe he lacked funds to pay a settlement, defendant ZIGELMAN stated, "I understand. Very good. Very good. Yes, we can do that with a wire."
Overt Act No. 66: On or about April 12, 2006, defendant KANTOR sent an email to R.K. stating, "the Trustees have always honored your wishes. In fact, from a practical point of view, they would not venture to make any investments without your approval . . ."
Overt Act No. 67: On or about September 17, 2006, defendant ZIGELMAN caused the preparation of a charitable contribution receipt on behalf of Mesivta Imrei Yosef Spinka acknowledging the receipt of $25,000 from R.K.
Overt Act No. 68: On or about September 20, 2006, defendant ZIGELMAN caused the deposit of a $25,000 check from R.K. issued for the benefit of Mesivta Imrei Yosef Spinka.
Overt Act No. 69: On or about November 20, 2006, in response to R.K.'s statement that he wanted to "move some money to Israel and effectively hide it" from the SEC, defendant ROTH began speaking in Hebrew and replied, "Where are you calling from?" and "Don't talk so much."
Overt Act No. 70: Sometime prior to December 18, 2006, defendant ROTH caused a bank account to be opened at the Israeli Bank in Tel Aviv, Israel in the name of Bedford Holdings ("the Bedford Holdings account").
Overt Act No. 71: On or about December 18, 2006, defendants ZIGELMAN and ROTH caused $20,125 to be wired from Mercantile Discount Bank, Toronto, Canada to the Bedford Holdings account at the Israeli Bank.
Overt Act No. 72: On or about December 18, 2006, defendants ZIGELMAN and ROTH caused $3,000 to be wired from Bendix Foreign Exchange Corporation, Toronto, Canada to the Bedford Holdings account at the Israeli Bank in Tel Aviv, Israel.
Overt Act No. 73: On or about December 26, 2006, defendants WEISZ and ZIGELMAN discussed smuggling cash across the Canadian/U.S. border.
Overt Act No. 74: On or about December 31, 2006, defendants WEISZ and ZIGELMAN reconciled their bookkeeping records pertaining to Spinka's accounts with defendant LAZAR and discussed cash transfers between defendant LAZAR and other members and participants in the underground money transfer system, including defendant FRIEDMAN.
Overt Act No. 75: On or about January 6, 2007, defendant ZIGELMAN caused the preparation of a charitable contribution receipt on behalf of Yeshiva Imrei Yosef acknowledging the receipt of $20,000 from R.K.
Overt Act No. 76: On or about January 6, 2007, defendant ZIGELMAN caused the preparation of a charitable contribution receipt on behalf of Yeshiva Imrei Yosef acknowledging the receipt of $50,000 from R.K.
Overt Act No. 77: On or about January 7, 2007, defendants WEISZ and ZIGELMAN discussed R.K.'s $20,000 contribution, and agreed that they would charge him 7% and return to him $18,600.
Overt Act No. 78: On or about January 7, 2007, defendant NAIMAN informed defendant ZIGELMAN that he had picked up from another participant in the underground money transfer system approximately $196,000 in cash much of which consisted of $20 bills and that "he was not crazy to sit and count it all day."
Overt Act No. 79: On or about January 7, 2007, defendants WEISZ and ZIGELMAN reconciled bookkeeping accounts pertaining to cash transfers between defendants LAZAR and FRIEDMAN, R.K., and other participants in the underground money transfer system.
Overt Act No. 80: On or about January 7, 2007, defendants WEISZ and ZIGELMAN calculated that the Spinka charitable organizations had received $8,718,659 through contributors solicited through defendant ZIGELMAN and that they had "profits" of $744,596 after deducting the amounts paid back to the various contributors.
Overt Act No. 81: On or about January 8, 2007, defendant WEISZ told defendant ZIGELMAN that he would provide him with a "hidden contraption" prior to ZIGELMAN departing on a flight for Israel.
Overt Act No. 82: On or about January 8, 2007, defendant ZIGELMAN caused the deposit of a $20,000 check from R.K. made payable to Yeshiva Imrei Yosef.
Overt Act No. 83: On or about January 16, 2007, defendants ZIGELMAN and FRIEDMAN reconciled their bookkeeping records pertaining to Spinka's accounts with defendant FRIEDMAN and discussed cash transfers between defendant FRIEDMAN and other participants in the underground money transfer system, including defendants LAZAR and NAIMAN and R.K.
Overt Act No. 84: On or about January 16, 2007, defendant ZIGELMAN caused the deposit of a $50,000 check from R.K. made payable to Yeshiva Imrei Yosef.
Overt Act No. 85: On or about January 18, 2007, defendants ZIGELMAN and ROTH caused $20,000 to be wired from an unknown location to the Bedford Holdings account at the Israeli Bank in Tel Aviv, Israel.
Overt Act No. 86: Sometime between January 16 and January 22, 2007, defendant NAIMAN delivered $116,000 in cash to defendant FRIEDMAN.
Overt Act No. 87: On or about January 22, 2007, defendant FRIEDMAN handed R.K. $18,600 in cash.
Overt Act No. 88: On or about February 9, 2007, defendant ZIGELMAN caused the deposit of a $20,000 check from R.K. made payable to Mesivta Imrei Yosef Spinka.
Overt Act No. 89: On or about February 9, 2007, defendant ZIGELMAN caused the preparation of a charitable contribution receipt on behalf of Mesivta Imrei Yosef Spinka acknowledging the receipt of $20,000 from R.K.
Overt Act No. 90: On or about February 9, 2007, defendant ZIGELMAN caused the deposit of a $50,000 check from R.K. made payable to Mesivta Imrei Yosef Spinka.
Overt Act No. 91: On or about February 9, 2007, defendant ZIGELMAN caused the preparation of a charitable contribution receipt on behalf of Mesivta Imrei Yosef Spinka acknowledging the receipt of $50,000 from R.K.
Overt Act No. 92: On or about February 11, 2007, defendants WEISZ and ZIGELMAN discussed R.K.'s reimbursement rate and R.K.'s request that Spinka's percentage not be increased to more than the current 7%.
Overt Act No. 93: On or about February 15, 2007, defendant LAZAR handed R.K. $18,600 in cash.
Overt Act No. 94: On or about February 21, 2007, defendants ZIGELMAN and ROTH caused $26,250 to be wired from an account in the name of Gemilas Chesed Chasdei Dovid at JPMorgan Chase, New York, New York to the Bedford Holdings account at the Israeli Bank in Tel Aviv, Israel.
Overt Act No. 95: In or about March 2007, defendants ZIGELMAN and ROTH caused $46,230 to be wired from an unknown location to the Bedford Holdings account at the Israeli Bank in Tel Aviv, Israel.
Overt Act No. 96: On or about June 27, 2007, defendants ZIGELMAN, ROTH, KANTOR, and others caused the transfer of $87,326.26 from the Bedford Holdings account to a Spinka nominee account in the name of Tzidkat Levy Yitzchak, Ltd. ("the Tzidkat account") at the Israeli Bank in Jerusalem, Israel.
Overt Act No. 97: On or about July 13, 2007, defendant ZIGELMAN told R.K. that the fee for moving funds from the Bedford Holdings account to the United States through a Spinka nominee account would be 7.5% and that, after multiplying the $87,326.26 figure by the fee rate, R.K. would receive $80,776.
Overt Act No. 98: On or about July 23, 2007, defendant ZEIVALD handed R.K. $80,776 in cash.
Overt Act No. 99: On or about July 23, 2007, defendant ZEIVALD explained to R.K. that the fee is higher if the money is wired to Israel because "It costs more over there" and "he [defendant ZIGELMAN] need to buy it [cash] in Israel."
Overt Act No. 100: On or about October 10, 2007, defendant ZIGELMAN caused the deposit of a $20,000 check from R.K. made issued for the benefit of Yeshivath Spinka.
Overt Act No. 101: On or about November 11, 2007, defendant ZIGELMAN handed R.K. a charitable contribution receipt on behalf of Yeshivath Spinka acknowledging the receipt of $20,000 from R.K.
Overt Act No. 102: On or about November 21, 2007, defendant LAZAR handed R.K. $18,500 in cash.
37. On or about October 17, 2000, in Los Angeles County, within the Central District of California and elsewhere, defendant MOSHE E. ZIGELMAN willfully aided, assisted, procured, counseled, and advised the preparation and presentation to the Internal Revenue Service of a U.S. Individual Income Tax Return Form 1040 prepared on behalf of co-conspirator R.K. for the calendar year 1999, which was false and fraudulent as to a material matter, in that defendant ZIGELMAN caused to be prepared and sent to R.K. charitable donation receipts that represented that R.K. had contributed approximately $455,000 in charitable donations to Yeshivath Spinka and Yeshiva Imrei Yosef during the 1999 calendar year and was entitled to charitable deductions in that amount, whereas in truth and fact, as defendant ZIGELMAN then well knew, approximately 80 to 95 percent of R.K.'s donations had been reimbursed.
38. On or about October 16, 2001, in Los Angeles County, within the Central District of California and elsewhere, defendant MOSHE E. ZIGELMAN willfully aided, assisted, procured, counseled, and advised the preparation and presentation to the Internal Revenue Service of a U.S. Individual Income Tax Return Form 1040 prepared on behalf of co-conspirator R.K. for the calendar year 2000, which was false and fraudulent as to a material matter, in that defendant ZIGELMAN accepted $50,000 in charitable donations from R.K. on behalf of Yeshivath Spinka during the 2000 calendar year and then caused to be reimbursed approximately 80 to 95 percent of that amount, knowing that R.K. intended to claim the full $50,000 donation as a deduction.
39. Paragraphs 1 through 20 and 23 through 35 of this First Superseding Indictment are hereby realleged and incorporated as though fully set forth below.
40. Beginning in or about 1996 and continuing through December 2007, in Los Angeles County, within the Central District of California, and elsewhere, the defendants identified below, together with others known and unknown to the Grand Jury, knowingly and with intent to defraud, devised, participated in, and executed a scheme to defraud the IRS and the SEC as to material matters, and to obtain money and property by means of material false and fraudulent pretenses, representations, and promises, and the concealment of material facts, which scheme is described more fully in paragraphs 1 through 20 and 23 through 35 of this First Superseding Indictment.
41. On or about the dates set forth below, within the Central District of California, for the purpose of executing the above-described scheme to defraud, the defendants identified below, together with others known and unknown to the Grand Jury, aiding and abetting each other, caused to be placed in an authorized depository for mail matter to be sent and delivered by the United States Postal Service, to be deposited to be sent and delivered by a private and commercial interstate carrier, and to be received by mail and such carrier, the following items:
_____________________________________________________________________________ COUNT DATE DEFENDANTS ITEM SENT _____________________________________________________________________________
FOUR 1/30/05 WEISZ Charitable receipt for $27,750
ZIGELMAN from Yeshiva Imrei Yosef Spinka
sent from Brooklyn, NY to Los
Angeles, CA
FIVE 1/22/05 WEISZ $27,750 check payable to
ZIGELMAN Yeshiva Imrei Yosef sent from
Los Angeles, CA to Brooklyn,
NY
SIX 4/8/05 WEISZ $36,000 check payable to
ZIGELMAN Central Rabbinical Seminary
sent from Los Angeles, CA to
Brooklyn, NY
SEVEN 5/9/05 WEISZ $10,000 check payable to
ZIGELMAN Yeshiva Imrei Yosef sent from
Los Angeles, CA to Brooklyn,
NY
EIGHT 6/4/05 WEISZ Charitable receipt for $36,000
ZIGELMAN from Central Rabbinical
Seminary sent from Brooklyn, NY
to Los Angeles, CA
NINE 6/8/05 WEISZ $25,000 check payable to
ZIGELMAN Central Rabbinical Seminary
sent from Los Angeles, CA to
Brooklyn, NY
TEN 7/15/05 WEISZ Charitable receipts for
ZIGELMAN $10,000 from Yeshiva Imrei
Yosef Spinka and $25,000 from
Central Rabbinical Seminary
sent from Brooklyn, NY to Los
Angeles, CA
ELEVEN 9/14/05 WEISZ $50,000 check payable to
ZIGELMAN Machnai Svea Ratzon sent from
Los Angeles, CA to Brooklyn,
NY
TWELVE 11/9/05 WEISZ Charitable receipt for $50,000
ZIGELMAN from Machne Sva Rotzohn sent
from Brooklyn, NY to Los
Angeles, CA
THIRTEEN 11/28/05 WEISZ $50,000 check payable to
ZIGELMAN Mesivta Imrei Yosef sent from
Los Angeles, CA to Brooklyn,
NY
FOURTEEN 12/23/05 WEISZ Charitable receipt for $50,000
ZIGELMAN from Mesivta Imrei Yosef
Spinka sent from Brooklyn, NY
to Los Angeles, CA
FIFTEEN 9/15/06 WEISZ $25,000 check payable to
ZIGELMAN Mesivta Imrei Yosef Spinka
ROTH sent from Los Angeles, CA to
Brooklyn, NY
SIXTEEN 11/18/06 WEISZ Charitable receipt for $25,000
ZIGELMAN from Mesivta Imrei Yosef
ROTH Spinka sent from Brooklyn, NY
to Los Angeles, CA
SEVENTEEN 1/4/07 WEISZ $50,000 check payable to
ZIGELMAN Yeshiva Imrei Yosef sent from
ROTH Los Angeles, CA to Brooklyn, NY
EIGHTEEN 1/4/07 WEISZ $20,000 check payable to
ZIGELMAN Yeshiva Imrei Yosef sent from
ROTH Los Angeles, CA to Brooklyn,
NY
NINETEEN 2/7/07 WEISZ $50,000 check payable to
ZIGELMAN Mesivta Imrei Yosef Spinka
ROTH sent from Los Angeles, CA to
Brooklyn, NY
TWENTY 2/7/07 WEISZ $20,000 check payable to
ZIGELMAN Mesivta Imrei Yosef Spinka
ROTH sent from Los Angeles, CA to
Brooklyn, NY
TWENTY- 2/22/07 WEISZ Charitable receipts for
ONE ZIGELMAN $50,000 from Yeshiva Imrei
ROTH Yosef Spinka, $20,000 from
Yeshiva Imrei Yosef Spinka,
$20,000 from Mesivta Imrei
Yosef, and $50,000 from
Mesivta Imrei Yosef sent from
Brooklyn, NY to Los Angeles,
CA
TWENTY- 10/8/07 WEISZ $20,000 check payable to
TWO ZIGELMAN Yeshiva Spinka sent from Los
ROTH Angeles, CA to Brooklyn, NY
ZEIVALD
_____________________________________________________________________________
42. Paragraphs 1 through 20 and 23 through 35 of this First Superseding Indictment are hereby realleged and incorporated as though fully set forth below.
43. Beginning on an unknown date and continuing through December 2007, in Los Angeles County, within the Central District of California, and elsewhere, defendants NAFTALI TZI WEISZ, MOSHE E. ZIGELMAN, YAACOV ZEIVALD, MOSHE ARIE LAZAR, YOSEF NACHUM NAIMAN, ALAN JAY FRIEDMAN, YESHIVA IMREI YOSEF, YESHIVATH SPINKA, CENTRAL RABBINICAL SEMINARY, MACHNE SVA ROTZOHN, and MESIVTA IMREI YOSEF SPINKA, together with others known and unknown to the Grand Jury, aiding and abetting each other, knowingly conducted, controlled, managed, supervised, directed, and owned all or part of an unlicensed money transmitting business, which affected interstate and foreign commerce and which: (a) was operated in California and New York where such unlicensed operation was punishable as a misdemeanor or felony under those states' laws; (b) failed to comply with the money transmitting business registration requirements under Title 18, United States Code, Section 5330 and regulations prescribed under that Section; and (c) involved the transportation and transmission of funds that were known to defendants to have been derived from a criminal offense or were intended to be used to promote or support unlawful activity.
44. Paragraphs 1 through 20, 23 through 35, 40, and 41 of this First Superseding Indictment are hereby realleged and incorporated as though fully set forth below.
45. Beginning in or about 1998 and continuing through in or about December 2007, in Los Angeles County, within the Central District of California, and elsewhere, defendants NAFTALI TZI WEISZ, MOSHE E. ZIGELMAN, JOSEPH ROTH, JACOB IVAN KANTOR, YESHIVA IMREI YOSEF, YESHIVATH SPINKA, CENTRAL RABBINICAL SEMINARY, MACHNE SVA ROTZOHN, and MESIVTA IMREI YOSEF SPINKA, together with R.K. and others known and unknown to the Grand Jury, knowingly combined, conspired, and agreed to cause funds to be transported, transmitted, and transferred internationally with the intent to promote the carrying on of specified unlawful activity, namely mail fraud and wire fraud, in violation of Title 18 United States Code, Sections 1341 and 1343.
46. Paragraphs 1 through 20, 23 through 35, 40, and 41 of this First Superseding Indictment are hereby realleged and incorporated as though fully set forth below.
47. On or about the dates set forth below, in Los Angeles County, within the Central District of California and elsewhere, defendants NAFTALI TZI WEISZ, MOSHE E. ZIGELMAN, JOSEPH ROTH, JACOB IVAN KANTOR, YESHIVA IMREI YOSEF ("YIY"), and MESIVTA IMREI YOSEF SPINKA ("MIY"), together with others known and unknown to the Grand Jury, aiding and abetting each other, transported, transmitted, and transferred, and caused to be transported, transmitted, and transferred, the following funds from a place in the United States to and through a place outside the United States, and to a place in the United States from or through a place outside the United States, with the intent to promote the carrying on of specified unlawful activity, namely mail fraud in violation of Title 18, United States Code, Section 1341, and wire fraud in violation of Title 18, United States Code, Section 1343:
_____________________________________________________________________________ COUNT DATE DEFENDANTS TRANSFER _____________________________________________________________________________
TWENTY-FIVE 1/29/03 WEISZ $190,000 from the Israeli Bank
ZIGELMAN in Tel Aviv, Israel, through
Bank Hapoalim, Bnei Brak,
Israel, to the Israeli
Bank in Los Angeles
TWENTY-SIX 1/29/03 WEISZ $160,000 from the Israeli
ZIGELMAN Bank in Tel Aviv, Israel,
through Bank Hapoalim, Bnei
Brak, Israel, to the Israeli
Bank in Los Angeles
TWENTY-SEVEN 2/7/03 WEISZ $400,000 from the Israeli
ZIGELMAN Bank in Tel Aviv, Israel,
through Bank Hapoalim, Bnei
Brak, Israel, to the Israeli
Bank in Los Angeles
TWENTY-EIGHT 2/12/03 WEISZ $500,000 from the Israeli
ZIGELMAN Bank in Tel Aviv, Israel,
through Bank Hapoalim, Bnei
Brak, Israel, to the Israeli
Bank in Los Angeles
TWENTY-NINE 3/12/03 WEISZ $150,000 from the Israeli
ZIGELMAN Bank in Tel Aviv, Israel,
through Bank Hapoalim, Bnei
Brak, Israel, to the Israeli
Bank in Los Angeles
THIRTY 3/20/03 WEISZ $250,000 from the Israeli
ZIGELMAN Bank in Tel Aviv, Israel,
through Bank Hapoalim, Bnei
Brak, Israel, to the Israeli
Bank in Los Angeles
THIRTY-ONE 9/06- WEISZ $23,125 from R.K. account
12/06 ZIGELMAN in Los Angeles to Mesivta
ROTH Imrei Yosef Spinka account
KANTOR in New York, through unknown
MIY means to Mercantile Discount
Bank and Bendix Foreign
Exchange Corporation in
Toronto, Canada, to Bedford
Holdings account at the
Israeli Bank in Tel Aviv,
Israel
THIRTY-TWO 1/07 WEISZ $20,000 from R.K. account
ZIGELMAN in Los Angeles to Yeshiva
ROTH Imrei Yosef account in New
KANTOR York, through unknown means
YIY to Bedford Holdings account
at the Israeli Bank in Tel
Aviv, Israel
THIRTY-THREE 1/07- WEISZ $26,250 from R.K. account
2/07 ZIGELMAN in Los Angeles to Yeshiva
ROTH Imrei Yosef account in New
KANTOR York, through Gemilas
YIY Chesed Chasdei Dovid account
in New York, to Bedford
Holdings account at the
Israeli Bank in Tel Aviv,
Israel
THIRTY-FOUR 3/07 WEISZ $46,230 from R.K. account
ZIGELMAN in Los Angeles to Mesivta
ROTH Imrei Yosef Spinka account
KANTOR in New York, through
MIY unknown means to Bedford
Holdings account at the
Israeli Bank in Tel Aviv,
Israel
THIRTY-FIVE 6/07- WEISZ $80,776 from Bedford
7/07 ZIGELMAN Holdings account at the
ROTH Israeli Bank in Tel Aviv,
KANTOR Israel, through Tzidkat
YIY nominee account at the
MIY Israeli Bank in Jerusalem,
Israel, through unknown
means to defendant ZEIVALD
who delivered the sum in
cash to R.K.
_____________________________________________________________________________
48. The allegations contained in Count One and Counts Four through Twenty-Two are hereby realleged and incorporated as though fully set forth below for the purpose of alleging forfeiture pursuant to the provisions of Title 28, United States Code, Section 2461(c), Title 18, United States Code, Section 981(a)(1)(C), and Title 21, United States Code, Section 853.
49. Pursuant to Title 28, United States Code, Section 2461(c), Title 18, United States Code, Section 981(a)(1)(C), and Title 21, United States Code, Section 853, each of the defendants convicted under one or more of the offenses set forth in Count One and Counts Four through Twenty-Two of this First Superseding Indictment, shall forfeit to the United States the following property:
b. A sum of money equal to the total amount of money obtained as a result, of each such offense for which the defendant is convicted. Each defendant shall be jointly and severally liable for the sum with all other defendants so convicted.
50. Pursuant to Title 21, United States Code, Section 853(p), as incorporated by Title 28, United States Code, Section 2461(c), each of the defendants, if so convicted, shall forfeit substitute property, up to the value of the amount described in the preceding paragraph, if, by any act or omission of the defendant(s), the property described therein, or any portion thereof, (a) cannot be located upon the exercise of due diligence; (b) has been transferred or sold to, or deposited with, a third party; (c) has been placed beyond the jurisdiction of the court; (d) has been substantially diminished in value; or (e) has been commingled with other property which cannot be divided without difficulty.
51. The allegations contained in Counts Twenty-Three through Thirty-Five are hereby realleged and incorporated as though fully set forth below for the purpose of alleging forfeiture pursuant to the provisions of Title 18, United States Code, Section 982, and Title 21, United States Code, Section 853.
52. Pursuant to Title 18, United States Code, Section 982(a)(1), each defendant who is convicted of one or more of the offenses set forth in Twenty-Three through Thirty-Five of this First Superseding Indictment shall forfeit to the United States the following property:
(ii) All commissions, fees and other property-constituting proceeds obtained as a result of money laundering, conspiracy to commit money laundering, and the operation of an unlicensed money transmitting business; and
(iii) All property used in any manner or part to commit or to facilitate the commission of those violations,
53. Pursuant to Title 21, United States Code, Section 853(p), as incorporated by Title 18, United States Code, Section 982(b), each defendant shall forfeit substitute property, up to the value of the property described in the preceding paragraph, if, by any act or omission of the defendant, the property described in the preceding paragraph, or any portion thereof, cannot be located upon the exercise of due diligence; has been transferred, sold to, or deposited with a third party; has been placed beyond the jurisdiction of the court; has been substantially diminished in value; or has been commingled with other property which cannot be divided without difficulty.
Thomas P. O'Brien
United States Attorney
George S. Cardona
Chief Assistant United States Attorney
Christine C. Ewell
Assistant United States Attorney
Chief, Criminal Division
Douglas A. Axel
Assistant United States Attorney
Chief, Major Frauds Section
Daniel J. O'Brien
Assistant United States Attorney
Major Frauds Section
