Is Chabad's Israel Head Going Down? Allegations of Massive Embezzlement, Fraud, Tax Evasion and Cronyism May Topple Aronow and Chabad

Noam Sharvit of Globes reports:

Officers from Israel Police Central Region Fraud Unit and Israel Tax Authority investigators have arrested the director of Chabad Youth Organization in Israel, Rabbi Yosef Yitzchak Ahronov, the nonprofit organization's (NPO) accountant, and one of its authorized signatories, on suspicion of embezzlement amounting to tens of millions shekels and tax fraud running into hundreds of millions of shekels. The four men are suspected of theft, fraudulent receiving, and money laundering, in which leading businessmen are also thought to be involved.

Ahronov was arrested this morning on return from a fund raising campaign abroad, as detectives raided the NPO's offices in Kfar Chabad. At web posting, the four men were due to appear at the Ramla Magistrates Court for a remand hearing.

Police began an undercover inquiry into Chabad Youth Organization following a complaint by the Registrar of Nonprofit Organizations about irregularities in the NPO's management. The inquiry revealed that funds intended as donations were transferred to private accounts held by the director and others. It was also discovered that receipts issued for donations were not entered on the NPO's books.

Adv. Gideon Fisher, the lawyer representing Ahronov and Lubavitch-Chabad, said the investigators were trying to blame the NPO's officers for fraud that they themselves had uncovered. "The inquiry began following a lawsuit the NPO filed against its former treasurer, in which it claimed he embezzled more than NIS 30 million. In his defense, the treasurer sought to divert attention from his own actions by making absurd claims in an attempt to smear the NPO's director and Chabad leaders."

As I wrote just over one year ago:

Lubavitch Youth (Tzach) in Israel is embroiled in a lawsuit over more than $3 million in missing funds. Rabbi Yosef Yitzchok Aranow, the head of Tzach, accuses his former CFO Yosef Segal of stealing the money. Segal accuses Aronow of taking al that money – and much more, of croynism and illegal payments to friends and family, and of stealing money specifically earmarked for Children of Chernobyl. Tzach gets about $20 million annually from the Israeli government alone.

Aronow refused to go to police, he claims, because of mesira, the prohibition against informing. This could be true. But the government refused to clear Tzach's nonprofit status until the police were called and the thefts investigated. Aronow refused to make that call so the government did it for him. Knowing how readily Aronow has resorted to secular couts and authorities in the past, I think Aronow and his henchmen are dirty, and have done everything Segal claims – and more. Which is the real reason Aronow would not call the police.  Segal himself may have stolen money – or he may be innocent. Time will tell.

I think time has told and Aronow is going down.

[Hat Tip: Archie Bunker.]

Comments

[yonah loriner]

i am in no way shape manner or form a shabbadnik but its in no way shape manner or form goin down!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
yona loriner

[yona loriner]

i am in no way shape manner or form a shabbadnik but its in no way shape manner or form goin down!!!!!!!!!!!!!!!!
yonah loriner

[Yoni]

I've got in front of me this morning's paper (Yisrael Hayom, the freebie owned by my good buddy - I wish - Sheldon Adelson of viva Las Vegas fame). There's a picture of a detective leaving the Chabad office carrying a big box (apparently evidence). What I notice is the big black kippa this obviously secular detective is donning; he put on a kippa before entering the administrative offices of an organization whose principals he's investigating for serious crimes! What is this, a shul?! When they come for Avraham Mondrowitz (cover story for this weekend's Haaretz Magazine, btw) are they gonna be donning kippot in his honor as well?

[Lev]

Remember Avrohom, Shmarya?
He accused people similar to him but HATED by him as shver-killers, frauds, etc.
Now chips fall in a different direction...

[YitzchakS]

Sorry. Aronov may go down, but everyone in Chabad knew what he is all about. Chabad is until Moshiach comes, and every Chabad House might as well be independent for what Aronov does for them. Your dreams of being the new Yevsektzia will have to wait for a long, long time.

In fact, the ones who do the most for Chabad in EY are the normal meshichisten who have nothing to do with Aronov anyway. I disagree with them, but their work is amazing and they are not involved in anything remotely near what Aronov and his crew supposedly do.

[Yochanan Lavie]

Yitzchak has a point. I am no fan of Chabad, but in some way it's like McDonald's- there is the corporation and then there are franchisees. The corporation has some responsibility, but so do the franchise owners. If all McDonald's sells tainted fries, that's a corporate problem. But if an individual franchise owner, even one who owns several restaurants, taints the fries, it's his responsibility. (Chabad houses are like the restaurants). The question I have for Shmarya- and everybody- Is this a corporate problem or a rogue franchise owner?

[YitzchakS]

If you want to use that analogy, then Aronov is a tainted district manager or perhaps master franchisee who broke rules of the franchise and used its good name for illegal dealings. But, because Chabad is not a classic franchise and Aronov waited until after Gimmel Tammuz to go completely bent, he reports to no one and no one can remove him.

FWIW after meeting Aronov in 1992 in Moscow I predicted he would end up in the can.He went from being a crook sent to catch a crook (a corrupt man who reined in and used his corrupt nature to deal with corruption in Israel to make sure Chabad schools and institutions got what they deserved) to just a plain crook who stopped doing anything of value for Chabad and started to run a corrupt business to line his pockets.

However, he became irrelevant ages ago. Even those (including myself) who have anything good to say about him knew who he is for years now. His downfall will not prevent Chabad from operating and in fact it may aid Chabad's growth.

[truechoside]

interesting how this is hushed in the press and even on this site kind of came to an end when in reality this can be the biggest public chabad scandal in decades! Aronov is not district manager - he is HEAD of chabad in Israel! Connected with Bibi and many other very powerful and RICH ....

[12345678]

what ever happened with this?

[770]

I guess the Aronov bashers were wrong...