Rabbi, 5 Others Plead Not Guilty To Tax Fraud

Lawyer News

The leader of an Orthodox Jewish sect and five other men accused of tax fraud and money laundering pleaded not guilty Monday in U.S. District Court in downtown Los Angeles.

Brooklyn, N.Y., resident Naftali Tzi Weisz, the 59-year-old Grand Rabbi of Spinka, was indicted by a federal grand jury Dec. 18 for allegedly taking part in a scheme that cheated the Internal Revenue Service out of at least $33 million in donations to Spinka charities.

Spinka is the name of a Hasidic sect within Orthodox Judaism. The group is named for the European town along the border of Romania and Hungary where it originated.

The six men were accompanied in court by their attorneys and about five supporters at this morning's hearing before U.S. Magistrate Judge Alicia Rosenberg.

Their trial is scheduled for Feb. 12.

According to the indictment, donors to Spinka charities were paid illegal kickbacks, refunding up to 95 percent of the donations, which were laundered through the Israel-based Mizrahi Bank and businesses in downtown Los Angeles' jewelry district.

The donors then claimed a tax deduction on the full amount, prosecutors said.

Weisz is currently free on $2 million bond.

Other named defendants are Gabbai Moshe Zigelman, 60, also of Brooklyn, N.Y.; Joseph Roth, 66, of Tel Aviv, Israel; Yaacov Zeivald, 43, of Valley Village; Los Angeles residents Alan Jay Friedman, 43, and Yosef Nachum Naiman, 55; as well as five Spinka charities.

All six men face lengthy terms in federal prison if convicted on all charges.

Zigelman and the other defendants are free on bond except for Roth, an assistant manager at Mizrahi Bank, who remains in custody. On Friday, U.S. Magistrate Judge Stephen Tillman granted Roth $1.9 million bond, but stayed his decision so prosecutors could appeal it to another judge.

Related listings

  • IRS says Fedex owes $319 mln in back taxes

    IRS says Fedex owes $319 mln in back taxes

    Lawyer News 12/22/2007

    Fedex Corp said on Friday that the U.S. Internal Revenue Service found that its FedEx Ground independent contractors should be reclassified as employees for tax purposes and that the company faced related taxes and penalties of more than $319 million...

  • IRS says Fedex owes $319 mln in back taxes

    IRS says Fedex owes $319 mln in back taxes

    Lawyer News 12/22/2007

    Fedex Corp said on Friday that the U.S. Internal Revenue Service found that its FedEx Ground independent contractors should be reclassified as employees for tax purposes and that the company faced related taxes and penalties of more than $319 million...

  • IRS warns of abusive tax scheme

    IRS warns of abusive tax scheme

    Lawyer News 12/18/2007

    The IRS is warning taxpayers about the emergence of a tax scheme related to the Telephone Excise Tax Refund that individuals were allowed to request on their 2006 tax returns. IRS Spokeswoman Dee Harris said some unscrupulous tax-return preparers are...

Victorville CA DUI defense Attorneys

The outcome of a DUI defense will have a long-term effect on anyone’s life, making the decision to receive legal representation an easy one. The fact is, most people accused of a DUI are first offenders with no criminal background. Whether this is your first run in with the law or you have had previous convictions, you are in need of a DUI defense attorney.

The charges you are facing for a DUI range from fines, a 12-month suspension on your license and worst-case scenario, prison time. Your attorney will be able to analyze your situation to decide the best way to go about your case.

Our attorneys know the tricky ways to challenge all of the DUI tests and know how to claim improper collection of evidence. We will be able to negotiate on your behalf and free you from charges and help you keep your drivers license. The DUI process can last up to several months, we can make this process easier on you. .

Business News

St Peters, MO Professional License Attorney Attorney John Lynch has been the go-to choice for many professionals facing administrative sanction. >> read