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February 20, 2010

Chabad Medicare Fraudsters Plead Guilty

Black Hat Fedora Sons of pioneering Chabad rabbis part of scheme to defraud government.

Levi Raichik and Schmuel Fogelman were part of a scam that defrauded Medicare out of $12 million by giving unneeded treatments to elderly and mentally ill patients.

Fogelman's father is the head of Chabad in Central Massachusetts. Raichik's father and grandfather were pioneering Chabad rabbis in Los Angeles.

Raichik was sentenced to four months in federal custody and $395,100 in restitution.

Fogelman was sentenced to three months in federal custody and $693,000 in restitution.

It appears that another two or three of the 18 indicted scammers may also be Orthodox. 

Raichik Fogelman etc DOJ Release 
Raichik 1 
Raichik 2 
Fogelman 1 

Comments

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Because one of them has a father who runs a Chabad center somewhere that warrants the title of, "Chabad Medicare Fraudsters"????..

As per the link it is not just 2 chabad guys, but some secular Jews (Who probably go to Reform Temple) and Gentiles were involved in this fraud.

Once again Chareidi dishonesty comes to light. The real question is whether Chabad is repudiating them openly or trying to call the accusers anti semites.

I think the pidyon shevuim fund is getting rather low. Please can people donate their children for the cause.

So they bilked the gov't out of $12 million but their restitution is only $395,100 + $693,000= $1,088,100? Something does not compute. No wonder this kind of fraud is so prevalent if you only have to pay back less than 10% of what you took. Now add the $12 mil to all the rest of REPORTED fraud cases and then to the UNreported cases and there might just be enough gov't $$ floating around to fund a new healthcare system!

Hey Hometown,
There are 18 people in this indictment.
just 2 of them is over 1 million. take the other 16 and it could be they are making back all 12 million.
Use your noodles a bit.

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