3 Satmar Hasidim Sentenced In Fraud Worth Hundreds Of Millions Of Dollars

Newsday reports:

The former chief executive of what was once one of Long Island's largest companies was sentenced yesterday to 15 years in prison for heading a decade-long fraud that kept the company afloat, but ended up costing creditors and stockholders $177million.

Herman Jacobowitz, the head of Brentwood-based Allou Healthcare, a distributor of health and beauty products and drugs, was ordered by U.S. District Judge John Gleeson in Brooklyn to make restitution of that money and to forfeit another $130million.

Jacobowitz's brother Aaron, who headed a number of unrelated companies that were used to launder money in the scheme, was sentenced to 10 years in prison by Gleeson, who ordered him to share in paying the hundreds of millions of dollars in forfeitures and restitution.

It is unlikely that creditors and stockholders will get much money back, because both brothers claim to be destitute.

A third brother, Jacob, the company's former executive vice president, is scheduled to be sentenced later in the week. Their father, Victor, also was arrested in connection with the investigation but has been considered too ill to face court appearances.

The Jacobowitz family is prominent in the Williamsburg Hasidic community, and the courtroom was packed with supporters.

Before he was sentenced, Herman Jacobowitz pleaded for mercy, wept, stamped his feet and cried out, "I'm sorry. ... It's on my mind day and night."

Their attorneys argued Herman and Aaron Jacobowitz should receive a reduced sentence because of their charitable work.

But Gleeson said he had little sympathy for their claim, calling it "utterly meritless," because the money they gave in charity had been gained through fraud.

While imposing the maximum sentences of 15 and 10 years that were agreed to under the plea-bargain, Gleeson said the two brothers were fortunate because if they had been convicted at trial he would have imposed a much more severe sentence because of the gravity of their offenses.

The Allou operation amounted to "12 years of fraud engaged in on a large scale on a daily basis," Gleeson said.

Richard Haddad, an attorney for the consortium of banks the Jacobowitzes defrauded, also had little sympathy for the plea for mercy based on charitable contributions. "Anyone can give away other people's money," Haddad said.…

Comments

[malachhamovies]

Well, at least he didn't go to college.

[PishPosh]

Every other year they grab Satmars with their hands in the cookie jar.
Kudos to the Judge for not playing footsie with them.

[PishPosh]

Every other year they grab Satmars with their hands in the cookie jar.
Kudos to the Judge for not playing footsie with them.

[Alex]

Every other year they grab Satmars with their hands in the cookie jar.

Thats cause goin to college and getting a (honest) c-a-r-e-e-r is treif.

[Mafia Basher]

I wonder when the BIGGEST satmar crook of them all is going to get in the slammer, Mr. LOUIS (LEZER) KESTENBAUM who controls all the federal, state, and city programs worth Millions which he pockets most of it thru his not for profit organizations like O.D.A. and U.J.O. and KOLLEL DAMSEK ELIEZER etc, etc, this KESTENBAUM guy is so open with his stealing that he goes around openly telling people that he will never get caught.

[Isa]

These grade school educated freaks cannot even imagine the financial tools the government has at its disposal to root out this type of crime. The government can even tell if they were skimming off the soda pop machine. Even the [college educated]Enron crooks who depended on a finacial maze to confuse the government got hit.

[MOSHE G]

Mr. LOUIS (LEZER) KESTENBAUM who controls all the federal, state, and city programs worth Millions which he pockets most of it thru his not for profit organizations like O.D.A. and U.J.O. and KOLLEL DAMSEK ELIEZER etc, etc, this KESTENBAUM guy is so open with his stealing that he goes around openly telling people that he will never get caught.CAUSE HE CLAIMS HE HAS BIG CONNECTIONS HIGH UP

[Anon]

What these guys did was inexecusable and a tremendous chillul hashem. However, using the actions of a few individuals to defame an entire group is bigotry at its best.

[Gershoi]

To:
MOSHE G and Mafia Basher,
Did Mr. LOUIS (LEZER) KESTENBAUM defraud you and your family that you spit venom against him? Or perhaps you and your family tried very hard to defraud him and he beat the crap out of you? Come on tell us what's bothering you.

[Dr Fred]

Anon:That's true. However, it would be more comforting if the "spiritual leader(s)" of these people would at least speak out against this despicable behavior,even without naming names. But don't hold your breath, the performance ( and that's what commonly takes place) of ritual Mitzvot trumps ethics and morality every time.

[R]

I don't feel sorry in the least. Why don't the big rabbis bring out a big ban saying they don't allow benefit or tax fraud or any other stealing for that matter. Infact it says black and white straight in the torah "thou shalt not steal" Oh sorry, the toire is only for the yeeden so it doesn't include goyim chalilah. They are a disgrace.

[Moishe]

Take a look at the diamond industry run by the Chasidim. Now there is one dirty business run by people with dirty beards!

[Moishe zurech]

fvfb

[Jenifer]

Louis & Joel Kestenbaum/Fortis Property Group Behind $880M Sale in Boston is going bust now ..What a ripoff these two goons pulled off

[Gregg Rapfipov]

These guys have disgraced their families, their communities and the Jewish people. They are a hillul Hashem and are guilty of seven big sins according to Jewish law. Their davening and learning are worthless.
Stealing is the eighth commandment of the Decalogue. Better they should have stayed in Hungary because the American Jewish community cannot tolerate them. The judge did just fine.

[ExOtisvilleCamper]

I heard a rumor that Aaron Jacobowitz was allowed to get a furlough from Otisville Camp to attend his daughter's wedding last weekend- which by the way if this is true meant the staff broke the LAW to let him go since it is illegal for an inmate to get a furlough if they are less than 2 years to their home date... and he doesn't get out until 2016...does anyone know if this is true? If so, it is among the many things that him and his brothers and friends do at the camp and is a disgrace.