From the ArcaMax Publishing, Religious News Newsletter:
http://www.arcamax.com/news/religiousnews/s-370875-469769
An Israeli banker has pleaded guilty to a tax fraud conspiracy charge
in Los Angeles and a New York rabbi is to follow suit, federal
prosecutors said.
Joseph Roth, 66, of Tel Aviv, who worked for United Mizrahi Bank,
pleaded guilty Friday to the federal conspiracy charge, admitting he
was part of a scheme to defraud the U.S. government out of millions of
dollars in tax revenues by setting up secret bank accounts in Israel
for bogus trusts, prosecutors said.
Rabbi Moshe E. Zigelman, 60, of New York has agreed to plead guilty to
conspiracy at a hearing set for Tuesday. Under the deal announced
Friday, Zigelman acknowledges his role in the decade-long scheme.
The accounts involved "charitable contributions" to organizations set
up under Spinka, an orthodox Jewish group that refunded most of the
money back to "contributors," authorities said. The contributions to
Spinka-related entities totaled $8.5 million in 2006 alone, of which
$7.75 million was returned to contributors.
The two defendants are among eight individuals -- including Naftali
Tzi Weisz, the grand rabbi of Spinka -- and five charitable entities
indicted last year.
The remaining defendants face trial Sept. 9 and Roth is to be
sentenced Oct.20.