A Spanking for Spinka, Part 2

This Blog's posting of 15 July 2009 discussed some broader implications of the plea agreement entered into by Naftali Tzvi Weisz, the Grand Rabbi of Spinka, in connection with his criminal money laundering charges. The subsequent posting of 31 July 2009 mentioned some of the contritionary acts and statements made by the Rabbi as he awaited sentencing.

Yesterday, in Los Angeles, U.S. District Judge John F. Walter imposed the sentence. The following matters are noted:

1. The statutory maximum for the offense is 5 years incarceration, plus 3 years supervised release, plus monetary fines. The plea agreement provided that the Rabbi would face no more than 3 years. The sentence actually imposed by Judge Walter was 2 years.

2. Yeshiva Imrei Yosef, one of the Spinka charitable institutions involved in the scheme, also pleaded guilty, and is slated to be sentenced in January 2010. It is not practical to incarcerate a corporation, but it can be fined, and such fines can result in the discontinuance of its existence. It is noted that the Spinka institutions, with the approval and encouragement of some major Rabbis connected with the Agudath Israel of America, are currently engaged in a campaign to collect money (and have an Internet presence for doing so, notwithstanding the many broad brush condemnations of the Internet by those same rabbis). I have received their solicitations, which tug at the heart strings and ask me to think of the innocent children whose education is now jeopardized. I agree with Rabbi Harry Maryles that if the good works done by the Spinka institutions are worthy of support, then the institutions should sever their connections with the Spinka hierarchy.

3. Leslie P. DeMarco, the ranking FBI Special Agent in Los Angeles, insinuated a quote into the US Attorney's press release: "Grand Rabbi Naftali Weisz exploited his position in the community, knowingly using the Spinka charitable organizations for the benefit of greedy donors. Today's sentencings close this aspect of the investigation. The donors, who were refunded up to 95 percent of the contributions they made to the Spinka charities but falsely claimed a charitable contribution deduction for the entire donation, are put on notice that they, too, have committed a crime, and that crime is tax fraud."


My take on it all:

Special Agent DeMarco's statement is an unambiguously clear signal that additional repercussions are in the pipeline. There is no doubt that scrutiny of the list of Spinka contributors has already begun. Rumors already are circulating, to the effect that one or more of the Spinka contributors have already cut deals with the IRS in order to avoid prosecution (or at least lessen the severity of criminal liability). I do not doubt that those who participated in the Spinka tax scam who have not come forward can expect some unpleasant visitors in the near future.

As for the Rabbi's sentence: The Rabbi got two years when he could have been slapped with three. That the Rabbi has been contrite is no secret. It is almost a given that he has encouraged his donors to make amends, and this has probably played a role in his sentence reduction.

The real question is whether the Rabbi has done more than that in return for the lenity he received. Has he, for example, provided or facilitated the provision of valuable information regarding transactions of others beyond the pale of the Spinka institutions?

A Session for Confession

The 15 July 2009 posting regarding the Spinka scandal and the Agudath Israel stated:


"The Agudath Israel needs to take corrective discipline with its misbehaving bratty children, instead of trying to convince the principal to not suspend the kids each time they misbehave. It should position itself as a proponent of compliance with tax laws instead of as a cover-upper of tax cheats, and as a proponent of zero tolerance for sexual abusers instead of a cover-upper of sexual abuse. This will take some practical leadership."


Perhaps the Agudath Israel is coming through. In a hurried response to the mass arrests in New Jersey (which only exacerbate the AI's increasingly embarassing public image), the AI convened a hastily-planned symposium (for men only, but that's a whole separate issue). The speakers at the symposium included none other than Naftali Tzvi Weisz, the Grand Rabbi of Spinka, who spoke some very contrite words. The speakers also included high-profile criminal defense attorney Benjamin Brafman, who said many of the things I have been saying for years. The videos of the event are very, very interesting, and can be viewed here if you have the time and inclination.


My take on it:

(A) Rabbi Chaim Dovid Zwiebel recently assumed the post of Executive Vice President of the Agudath Israel of America. He is a lawyer, and understands many of the legal nuances involved far better than mere rabbis.

(B) The Spinka Rebbe, having signed the tentative plea agreement, now has to do all sorts of contritional acts. Moreover, the plea agreement is a "package deal" contingent upon, inter alia, "a case disposition agreement executed by representatives of Spinka and all of its constituent organizations." The Rebbe's reference in his discourse to various watchdog-type committees is probably a reference to the terms and conditions of such case disposition agreements.

(C) In one of the videos, (approx. 2:00), Ben Brafman tells a semi-humorous story wherein he attended a minyan (English translation: A group of at least 10 Jewish men convened for prayer service) to say Kaddish for his father, and the guy selected to lead was his former client. Understand that Ben Brafman's clients are all criminal defendants. This, no doubt, made many of the AI hierarchy people in attendance wince.

(D) This symposium would have been unimaginable a year ago. But now, AA seems to be moving rapidly out of denial mode and is confronting problems which, only a short while ago, it would never admit existed. With the Jersey arrests making the headlines, the AI hierarchy now is beginning to realize that it can no longer go about delivering the morality lecture when so many members of so many of its affiliated groups are not behaving in a moral manner. Expect more events and missives with the new "obey the laws" message!

(E) Personal sentiment: It would not surprise me in the least if, within the next few months or years, the Agudath Israel of America erects a website. I leave it to those in the pari-mutuel profession to assign particular odds to particular time frames.

A Spanking for Spinka

The Agudath Israel of America is an advocacy organization for the more religiously observant Jewish groups. It presents and asserts many issues and viewpoints I consider to be necessary. I am grateful that it exists, and am not above sending it a modest monetary donation from time to time.

It therefore pains me to say that the Agudath Israel is a troubled organization. It is not a bad organization, but it is troubled because some of its past statements and suboptimal judgment calls are now coming back to haunt it. [N.B. I have similar sentiments regarding the Republican Party, for analogous reasons.].

This Blog's posting on 21 December 2007 commented on a tax fraud indictment case in Los Angeles, a case that involves the Spinka institutions. My very reliable sources now inform me that the Naftali Tzvi Weisz, the Grand Rabbi of Spinka, has signed a plea agreement whereby he will plead guilty to a felony conspirary charge and face up to 5 years imprisonment. The plea agreement is "wired," that is, the agreement is contingent upon the entry into of plea agreements by Rabbi Weisz's codefendants, and disposition agreements by the various Spinka institutions. My sources tell me that understandings have, for the most part, been reached regarding the codefendants' pleas, but that the disposition agreements with the corporate parties are still not in the zone of agreement.

The Spinka Chassidic community is one of the Agudath Israel's constituencies. The Spinka tax fraud case implicates, and may well exacerbate, the Agudath Israel's troubles. Please bear with me on this analysis:

Some time last April, apparently after Pesach, the Agudath Israel issued a statement (jointly with Torah Umesorah, the National Society for Hebrew Day Schools) regarding sexual abuse in religious Jewish institutions. The long and short of the statement is that the two organizations (A) " fully acknowledge the horror of child sexual abuse and the devastating long-term scars it all too often creates;" but (B) are concerned that legislation currently under consideration in Albany (if indeed anything at all is being done in Albany) might be so overly broad as to saddle educational institutions with "potentially crippling financial liability" for long past indiscretions by individuals who are dead, retired, or otherwise long gone from such educational institutions. Within the four corners of the policy statement document, I am 100% with Agudath Israel.

But the AI-TU joint statement was not written on a fresh klaf. At Agudath Israel's 2006 national convention, a speech was made by Rabbi Matisyahu Salomon wherein it was effectively admitted that many in the Agudath Israel leadership have swept under the rug the matter of sexual molestation in Yeshivas, in deference to the feelings of the families of the accused (and, in come cases, proven) molesters. Others have, and not without foundation, accused Agudath Israel of indecisiveness and stalling on the matter.

Before sexual abuse issue became THE big sore matter with Agudath Israel, there were some charges, again not without foundation, that the rabbis of Agudath Israel were wont to encourage abused wives to give in to their abusive husbands' monetary demands and not make a public issue of it. Indeed, in an article published in the Jewish Observer, the Agudath Israel's (almost) monthly magazine (as I recall, some time between 2000 and 2002 or thenabout), there was an effective denial that the problem was exacerbated by the various rabbis' entreaties to the abused wives to surrender to their husbands' monetary demands in exchange for the divorce.

And so, the Agudath Israel now has a public relations problem with its constituencies. Its failure to admit its shortcomings and lapses leaves many of its constituents (and former constituents) very skeptical.

Getting back to the Joint Statement, if one takes it at its face value (which I in fact do), a cardinal concern of the Agudath Israel is to maintain the viability of the religious Jewish day schools. This is also a concern of mine, and a cause to which much of my family's tzedaka (charity) allocations are directed. The way I read the Spinka situation, there is a serious question as to whether the Spinka educational institutions involved in the indictment can continue to financially survive if they agree to the settlements I would expect the government to demand, and/or the tax assessments the IRS is likely to have made and/or be in the process of making. Which puts the Agudath Israel right back on Square One!

The Agudath Israel needs to take corrective discipline with its misbehaving bratty children, instead of trying to convince the principal to not suspend the kids each time they misbehave. It should position itself as a proponent of compliance with tax laws instead of as a cover-upper of tax cheats, and as a proponent of zero tolerance for sexual abusers instead of a cover-upper of sexual abuse. This will take some practical leadership.

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I personally believe that Agudath Israel is capable of such leadership if they make the necessary changes in their policies and procedures (and, perhaps, personnel). For the sake of the future of American Jewry, I hope that I am correct on this score!

Does the Rabbi Keep a Kosher Kitchen?

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"When the pie was opened the birds began to sing,
Wasn't that a dainty dish to set before the king!"



The news from Los Angeles is a big tax evasion and money laundering bust which has ensnared Naftali Tzvi Weisz, the Grand Rabbi of Spinka in Boro Park. The details of the bust, including whether or not Rabbi Weisz is or is not innocent or guilty, are not particularly relevant for the purposes of this blog posting. All of the suspects are presumed innocent until proven guilty, and such presumption will pertain to this posting as well.

Imprimis, there are a number of rabbis who are known as the Grand Rabbi of the Spinka hassidim. Thus, Rebbetzin Sarah Bluma Horowitz, the Spinka Rebbetzin who died in a tragic traffic accident in the summer of 2006, was married to a different Spinka Grand Rabbi (and she might still be alive today had she been wearing a seatbelt, but that's a whole different ball of wax).

Assuming, again, that the Rabbi is in fact innocent and will ultimately be exonerated from these charges, the very fact of the indictment and arrest are problematic. I have taught my son to respect rabbis (though, like his father, he does question them from time to time), and I want people to know that the Torah is a good thing and that my religious Jewish lifestyle is a good thing.

Even if the Rabbi is exonerated, the very fact of his arrest and indictment has complicated my life, even though I am not connected with the Rabbi's religious institutions, do not live in the Rabbi's neighborhood, and indeed, do not recall ever meeting him. From my days with the various government agencies, the rule was (and still is) that avoiding impropriety is not enough; the very appearance of impropriety must also be avoided.

And, of course, the enemies of the Jewish people will also try to get some traction out of this one.

I have read the 40-page Indictment instrument (which does not seem to be posted anywhere, but which was graciously e-mailed to me by the Public Affairs Officer in the U.S. Attorney's office). Seems that there is an unindicted co-conspirator, one "R.K.," who seems to be cooperating with the prosecution. Most social groups view snitches with at least some degree of negativity; in the religious Jewish community this degree of negativity rises to the level of disdain and revulsion. Is "R.K." singing in return for lenity? Very likely! But, from a prosecutorial standpoint, the question must also be asked as to just how credible a witness he might make. My take on it: Excellent chance that if the matter goes to trial, "R.K." will be put on the witness stand and will sing his song of sixpence before the jury. But "R.K.'s" testimony will likely not be the prosecution's sole (or even chief) evidence. From the transactions described in the Indictment, there likely will be a confirmatory paper trail.

In the Spring of 2004, the IRS sent out numerous signals that it would soon be paying enhanced attention to tax-exempt organizations. Then IRS Commissioner Mark W. Everson, in his testimony before the Senate Finance Committee, gave hints that churches and similar religious organizations would thenceforth no longer be sacrosanctly immune from the IRS's scrutiny.

The first sentence of the US Attorney's press release announcing the indictment reads as follows:


"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."


And of what relevance, many are now asking, is the fact the people involved may be Orthodox Jews? Isn't that first sentence grounded in some sort of bigotry?

My take on it: No! The fact that the defendants are Orthodox Jews is only incidental. But the fact that it involves religious organizations is paramount!! The press release is sending the metamessage that religious groups can no longer find refuge in their religious observance from the requirements to obey the tax laws!

Of no less significance than the first sentence in the US Attorney's press release is the last sentence in the document: "The case is part of an ongoing investigation being conducted by the Federal Bureau of Investigation and IRS-Criminal Investigation."

"Ongoing investigation?" I very strongly anticipate some additional blackbirds to come out of the pie.

I certainly hope that the Rabbi is exonerated in the proceedings to follow, but am not willing to make book that such a state of affairs is in fact the case. Let the legal process move forward, and let the chips fall wherever they may.