Massive N.J. welfare fraud scheme

[GMDino]

https://www.usatoday.com/story/news/nation-now/2017/06/30/how-did-massive-n-j-welfare-fraud-scheme-work/441804001/

Quote:Seven Lakewood, N.J., couples were arrested this week on charges related to a multimillion-dollar welfare fraud scheme.


The families are accused of scamming the government into doling out nearly $2 million in aid reserved for the poorest citizens.

The basics:

• A prominent rabbi and his wife, as well as three others were arrested in simultaneous federal and state raids Monday morning on charges related to alleged public assistance fraud on a scale rarely seen before in New Jersey.
  Rabbi Zalmen Sorotzkin, who runs the synagogue Congregation Lutzk and businesses linked to the synagogue, was taken into custody Monday and is facing charges of theft by deception in Ocean County Superior Court. Read more here. 
• Three couples were arrested Tuesday night in federal and state raids in connection with an ongoing investigation that has so far exposed about $2 million in alleged public-assistance fraud in the town. 
  Each of the six people arrested Tuesday is facing a charge of second-degree theft by deception, a state crime, according to a prepared statement from the Ocean County Prosecutor's Office. Read more here.
  

Related:
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14 arrested in New Jersey welfare fraud investigation

Raid targets millionaire on food stamps

Arrests leave residents scrambling

In the last week, hundreds of Lakewood residents called township leaders asking how they can avoid arrest or get amnesty related to an alleged public-assistance fraud scheme that could stretch into the millions of dollars, according to one law enforcement with knowledge of the ongoing probes.

• That source, who was not authorized to speak publicly, said that dozens have also called Ocean County Social Services in Toms River to cancel their public assistance or update their income information. [url=https://www.usatoday.com/story/news/investigations/watchdog/2017/06/27/lakewood-raids-send-some-residents-scrambling/432655001/]Read more here. 
  

How did the money flow?

Hidden income, fake applications, and phony company owners were integral parts of a complex scheme several wealthy Lakewood families used for years to fool the government into doling out nearly $2 million in aid reserved for the poorest citizens, federal and state investigators say.

A child daycare center was also used to help hide one couple's true income, according to the charges. Read more here. 

Using public records, federal complaints and interviews with law enforcement officials, the Asbury Park Press examined the puzzle works of the government assistance fraud charges.

Clockwise from top left, Yitzchok Kanarek, William Friedman, Sora Kanarek, Chaim Ehrman, Faigy Friedman and Liatt Ehrman were arrested Tuesday, June 27, 2017, in an ongoing investigation into alleged public-assistance fraud in Lakewood, N.J. (Photo: Provided by Ocean County (N.J.) Prosecutor's Office via Asbury Park (N.J.) Press)

More than $1 million flowed through limited-liability companies — legitimate corporations set up to hide ownership — that enlisted relatives as straw owners and used corporate bank accounts to hide money, according to the charges.

At the center of most transactions was a local beeper store that helped transfer money across the globe, the charges state. As the 14 suspects were claiming poverty on government documents, they took in hundreds of thousands of dollars in undeclared income from the front companies. 

The paper trail shows the relative ease the families had in allegedly defrauding the government. In one case, authorities say a woman was able to withdraw $1.5 million from a company and deposit the money into her personal bank account while still collecting public assistance.

Federal criminal complaints against Shimon and Yocheved Nussbaum, of Hadassah Lane, and Mordechai and Rachel Sorotzkin, of Albert Avenue, detail how one couple — the Nussbaums — is accused of moving money between companies they controlled and the other — the Sorotzkins — simply failed to report their full income.

Lakewood Vaad reacts

In a statement issued late Wednesday and signed by Rabbi Mose Zev Weisberg, the Lakewood Vaad said it was "saddened beyond words" by the arrests, but added "As firm believers in the principle of ‘innocent until proven guilty,’ we suspend judgment until the disposition of these charges, and are comforted knowing that our judicial system is an able arbiter of justice."

Still, the Vaad — the influential council of local Orthodox Jewish religious and business leaders — said it viewed the arrests as a "valuable teaching moment that cannot be wasted."

"There is no such a thing as 'justified' theft," a statement continued. "Federal and State social safety-net programs are meant for those in need, even those in need have rules and criteria that must be strictly followed. To deliberately bend a safety-net eligibility rule is stealing, no different than stealing from your friend or neighbor. 


Shimon and Yocheved Nussbaum were arrested Monday, June 26, 2017, in Lakewood, N.J., in connection with a public-assistance fraud scheme. Their arrest was part of a larger operation, led by federal and New Jersey authorities, that netted the arrests of six others that day. (Photo: Peter Ackerman, Asbury Park (N.J.) Press)

"We would all do well to redouble and triple our efforts in our communities, reminding each and every one of us that there is never any excuse for dishonesty in any form."

The Vaad ended its statement by vowing to "launch a set of intensive educational programs that can ensure that such does not happen again," and said the public would be invited to participate. 

Clearly this means we should eliminate the program, right?  Because if someone committed fraud then we must punish all the people who didn't.  Right? 

[*michaelsean*]

Did it say someone owned a beeper store? And why are hundreds scrambling to avoid arrest?

[GMDino]

(06-30-2017, 11:07 AM)michaelsean Wrote: Did it say someone owned a beeper store?  And why are hundreds scrambling to avoid arrest?

Because, I'm guessing, there are more people in the community who were part of it or knew about it.

[*michaelsean*]

(06-30-2017, 11:29 AM)GMDino Wrote: Because, I'm guessing, there are more people in the community who were part of it or knew about it.

Chris Chritie should start up some road work by that neighborhood.

[GMDino]

(06-30-2017, 11:40 AM)michaelsean Wrote: Chris Chritie should start up some road work by that neighborhood.

He might be one who is scrambling...  

[BengalHawk62]

(06-30-2017, 11:59 AM)GMDino Wrote: He might be one who is scrambling...  

Is he shomer Shabbos?  Did he roll on Shabbos?










Three thousand years of beautiful tradition, from Moses to Sandy Koufax...

[ballsofsteel]

Its shit like this that makes the right want to eliminate welfare. Can't blame them in a way.

[SunsetBengal]

So, let me get this straight. A Rabbi gets caught trying to Jew the State out of millions set aside for the poor? And people wonder where stereotypes come from..

[*TheLeonardLeap*]

(06-30-2017, 10:08 AM)GMDino Wrote: https://www.usatoday.com/story/news/nation-now/2017/06/30/how-did-massive-n-j-welfare-fraud-scheme-work/441804001/



Clearly this means we should eliminate the program, right?  Because if someone committed fraud then we must punish all the people who didn't.  Right? 

I look forward to you defending gun rights, police officers, and religion next time you post an article about something bad related to one of those three happen.

[GMDino]

(06-30-2017, 05:25 PM)TheLeonardLeap Wrote: I look forward to you defending gun rights, police officers, and religion next time you post an article about something bad related to one of those three happen.

I look forward to you showing where I said people should not have a right to own a gun, all police officers are bad or that you don't have freedom of religion.  

Ever.

[GMDino]

Annnddd...people are awful.

https://www.usatoday.com/story/news/nation-now/2017/07/03/new-jersey-welfare-fraud-arrests-anti-semitic-sentiment/447441001/

Quote:New Jersey welfare fraud arrests spark anti-Semitic sentiment


Authorities arrested six more Lakewood residents on charges of public-assistance fraud in a second round of raids in the town late Tuesday. Payton Guion | Ryan Ross



(Photo: Peter Ackerman, Asbury Park (N.J.) Press)

 289CONNECTTWEET 2LINKEDIN 38COMMENTEMAILMORE
ASBURY PARK, N.J. — The social media comments on Facebook and other sites were raw, hateful.

The outpouring of invectives was sparked by the arrest last week of 14 residents of Lakewood, N.J., including the rabbi of a congregation, on public assistance fraud charges. The early morning raids ignited a firestorm of anti-Semitism against a municipality of 100,000 that has a majority of Orthodox Jewish residents.

"The allegations and the charges levied against (the defendants) have nothing to do with their religion," said Joshua Cohen, regional director of the Anti-Defamation League, New Jersey Region. "That's why we're deeply concerned when we see comments online, whether it's on newspaper websites or social media, that are anti-Semitic."

The hate speech moved off the Internet and into the streets. Hate fliers spread around the township over the weekend, said residents, who provided photos of the fliers. A white sheet hung over a Holocaust memorial at the Congregation Sons of Israel. Covering the stone memorial, the cloth banner used an anti-Semitic slur and promoted a website for a white supremacy group, authorities said.

More: How did massive N.J. welfare fraud scheme work?

Lakewood Police Detective Lt. Gregory Staffordsmith said the incidents were being investigated.

"We do believe that this recent rash of anti-Semitic incidents is directly related to the recent arrests in our town. We have not had any other incidents before," said Lakewood Police Chief Gregory Meyer. "We will not tolerate this kind of behavior and we are working with (the) state and the Ocean County (N.J.)
Prosecutor's Office in an attempt to make arrests. We will look to prosecute all incidents of bias crimes that take place against our citizens."

“It's perceived as anti-Semitism by the Semites. By outsiders, it's perceived as a legitimate gripe against people who they see as taking advantage of the system.”
Samuel Heilman, a sociology professor at the City University of New York

Many of the online comments zeroed in on the religion of the accused and made sweeping, disparaging, even dehumanizing statements about all Jewish people.

Although the primary vehicle for these hateful comments has been social media platforms such as Facebook, some Lakewood residents have experienced it in person.

A driver in Lakewood cut in front of an ambulance and purposely slowed down, giving the ambulance driver — who was Jewish — the finger, said Moshe Zev Weisberg, a member of the Vaad, Lakewood's voluntary council of Orthodox Jewish leaders and business members.

"Every community has their bad apples," said Weisberg. "Without prejudging individuals, there are people who cross the line. But to paint over with a broad brush the entire community — it's unacceptable."

Weisberg said there's this idea that members of the Orthodox community are millionaires conspiring to rip off the government, but it's just not true.

"It's very painful and hurtful, both personally as someone who has been living in Lakewood for 40 years and as a community leader," he said. "It tears our hearts out to see people say such things. It reminds us of an era not so long ago in Europe."

Understanding Orthodox Judaism
The ways of life of various Orthodox groups aren't necessarily looked upon favorably by modern society, said Jeffrey Alexander, a sociology professor at Yale University and a member of the Yale Program for the Study of Anti-Semitism's advisory group.

"People have every right to criticize a group who lives in a way that isn't open and Democratic and tolerant. Those are things we have to defend," Alexander said. "At the same time, we have to be tolerant of minorities who are different, even if they're different in ways we don't approve of."

The Orthodox subscribe to the idea that they are a separate society, said Samuel Heilman, a sociology professor at the City University of New York whose area of expertise is Orthodox Judaism.

More: 14 arrested in New Jersey welfare fraud investigation

The Orthodox members dress differently, act differently and separate themselves from American laws and societal norms, Heilman said. Orthodox identity is forged in a world where the outside community is seen as hostile, he said.

"It's hard to persuade them that they're no longer living in a world where they want all the Jews dead," he said. 

"Every community has their bad apples," said Rabbi Moshe Zev Weisberg, a member of the Vaad, a voluntary council of Orthodox Jewish leaders and business members in Lakewood, N.J. "... But to paint over with a broad brush the entire community — it's unacceptable." (Photo: Peter Ackerman, Asbury Park (N.J.) Press)

Heilman said 50% to 65% of the Orthodox in Lakewood live below the poverty level. In many ways, the Orthodox are impoverished by choice — many are not college educated, most marry early, have large families and don't see public assistance as an embarrassment. 

"It's not a matter of political corruption," Heilman said. "It's a matter of moral blindness."

Americans, with all their claims of multiculturalism, don't like people who are different, Heilman said.

"They don't like people who don't speak English. They don't like people who don't fit in," he said. "Many Orthodox Jews recognize this hostility."

More: Trump vows to fight anti-Semitism

The "cliquishness" of the Orthodox and the fact that they speak Yiddish in America creates xenophobia and prejudice, Heilman said.

"It's perceived as anti-Semitism by the Semites," Heilman said. "By outsiders, it's perceived as a legitimate gripe against people who they see as taking advantage of the system."

Weisberg said most people don't understand the lifestyle of observant couples. He said there are thousands of hardworking families juggling multiple jobs, studying and taking care of four to six children.

"It's not an easy life," Weisberg said. "It's not a community of freeloaders. It's a community that's trying to make ends meet."

He said some families do cross the line when it comes to applying for public assistance, but it's also common for families to get caught in the "gray area" — the process varies from agency to agency and the programs can be overly complicated.

"Overall, the real tragedy here is families get caught up in this and the hate mongers go loose," he said.

'Uptick' in anti-Semitism

Anti-Semitism and negative attitudes toward the Orthodox are nothing new in the communities surrounding Lakewood. As the Orthodox community continues to grow, clashes over changing culture and community identity continue to affect the region.

In 2016, the Anti-Defamation League in New Jersey received 157 anti-Semitic incident reports, a 14% increase from 2015, Cohen said. 

More: Lawsuit targets neo-Nazi 'troll storm' against Jewish family

According to the organization, there was an 86% increase in total incidents — 541—nationally in the first three months of 2017, compared with 291 in the same period of 2016.

The league's most recent national poll shows a 14% increase in anti-Semitic attitudes, up from 11% in 2014, Cohen said.

"There are a number of anti-Semites and racists who feel empowered and emboldened by the current political climate to say and do things that they wouldn't have ordinarily thought to do or say," Cohen said.

[*michaelsean*]

(07-03-2017, 11:59 AM)GMDino Wrote: Annnddd...people are awful.

https://www.usatoday.com/story/news/nation-now/2017/07/03/new-jersey-welfare-fraud-arrests-anti-semitic-sentiment/447441001/

Chris Christie will deal with all of this later.

https://www.yahoo.com/news/chris-christie-dismisses-outrage-use-shuttered-n-j-public-beach-143608505.html

Quote:Amid growing public frustration, New Jersey Gov. Chris Christie defended his family’s use of a beach that he had closed to the public — suggesting that they were free to run for governor as well.

“I’m sorry they’re not the governor,” Christie told “Good Day Philadelphia” Monday morning.
Christie sarcastically suggested that this latest “incredible scandal” is really nothing more than the press catching a politician “keeping his word” because he had already announced his vacation plans.
He also dismissed the Star-Ledger newspaper, which on Monday featured a photo of Christie lounging on the beach on its front page. “I’m sure they will get a Pulitzer for this one,” he quipped, according to NJ.com.

[GMDino]

(07-03-2017, 01:47 PM)michaelsean Wrote: Chris Christie will deal with all of this later.

https://www.yahoo.com/news/chris-christie-dismisses-outrage-use-shuttered-n-j-public-beach-143608505.html

Even if he can "legally" do what he's doing does he not care one iota about how it looks?


"No budget?  Well MY vacation isn't going to ruined AND I'm state is going to fly me, and only me, back and forth all weekend." 

But we must remember that democrats don't speak to the masses well enough to get elected.

[*michaelsean*]

(07-03-2017, 03:32 PM)GMDino Wrote: Even if he can "legally" do what he's doing does he not care one iota about how it looks?


"No budget?  Well MY vacation isn't going to ruined AND I'm state is going to fly me, and only me, back and forth all weekend." 

But we must remember that democrats don't speak to the masses well enough to get elected.

He keeps saying it's his residence.  The beach isn't.  The beach is public.  And I think it's apparent he hasn't cared how he looks for a long time.  

[GMDino]

(07-05-2017, 09:41 AM)michaelsean Wrote: He keeps saying it's his residence.  The beach isn't.  The beach is public.  And I think it's apparent he hasn't cared how he looks for a long time.  

One of the things I liked about CC when he was first elected was he was very no-nonsense.  And he would work with anyone...or criticize anyone.

One of the things I didn't like was he thought be Gov gave him carte blanche to use his helicopter to go to see his son play baseball.

The second CC has become more and more prominent.  The guy who thinks he can do whatever he wants and who cares...even when it looks (and is) awful.