Trial Of Accused Chabad Real Estate Scam Leader Begins

"It was a mitzvah to him, a Hebrew word that means a good deed and an obligation," defense lawyer says.

Apartment scam developer Eliyahu Ezagui says rebbe backed him
BY JOHN MARZULLI • New York DAILY NEWS

The rebbe made him do it.

A Brooklyn developer accused of fleecing dozens of Hasidic families in a massive subprime mortgage fraud scheme took cover behind a divine defense on Tuesday.

Eliyahu Ezagui's lawyer told jurors his client received "a blessing" from the late Rabbi Menachem Schneerson to build affordable housing for the Lubavitcher community in Crown Heights.

"It was a mitzvah to him, a Hebrew word that means a good deed and an obligation," defense lawyer Susan Necheles said in her opening statement in Brooklyn Federal Court.

Schneerson is considered by some followers to be their Messiah, and thousands of Hasidim from all over still make a pilgrimage to his grave site 15 years after his death.

Assistant U.S. Attorney William Schaeffer said Ezagui was nothing but a crook who scammed $2.6 million from condominium buyers and more than $10 million from banks.

"Family after family who trusted the defendant are fighting against foreclosure of the homes they bought from him," Schaeffer told the jury.

Prosecutors built a criminal case against Ezagui after the Daily News revealed in 2008 how he allegedly conned buyers into purchasing condos, then refused to hand over the deeds when the construction was completed.

Instead, Ezagui allegedly gave the deeds to family members - including his wife, father and mother - who applied for mortgages on condos the victims thought they owned.

Although Ezagui had the grand rebbe's blessing, he needed cash to build and that's where the investors came in, Necheles argued.

She said the so-called victims are sore losers trying to use the criminal justice system to recoup their investment losses.

The government's first witness appeared confused by the contracts and promissory notes.

"I thought Ezagui was a good man and I still think he's a good man, but I trusted that whatever I signed was not going to hurt me," said Tova Eilenberg, who bought two apartments at 770 Lefferts Ave.

Comments

[Bill]

News to me.

I thought "mitzvah" was Hebrew for "sneeze"....

[BringMoshiachNowWithDaveningAndDonations]

Now we have the Chabad version of the Nuremberg defense: "I was following the Rebbe's orders."

I love the address, 770 Lefferts Ave.

I have news for Mr. Ezagui, this "mitzvah" will get him straight into cell 770.

[Alex]

How is he different from any other crook? He said whatever it took to get the sale done whether it's Rebbe/Moshiach/Mitzvah whatever. This was his targeted audience.

[friend]

Eliyahu Ezaguy's side of the story:
http://www.ezaguicase.com

[steve]

16 Year Old Chabad Student Addresses Knesset, Causes Uproar Amongst Haredim

http://matzav.com/video-16-year-old-bochur-addresses-knesset#more-31689

[A E ANDERSON]

You gotta love the documents in the Ezagui case. There's one precious letter from the Bedatz of Crown Heights where Osdoba, Marlow, Heller, Zirkind and the rest of their rabbinical circus clowns "clarify" that they only permitted apartment owners to sue so the claimants wouldn't lack a roof over their heads. But in no case, they write in Hebrew, did they ever issue permission for "misirah" (ratting out) to a federal court or to prosecutors!

I am amused because Ezagui is hardly the only shady property figure to plague the Lubavs in Crown Heights. In the 1990s, buyers in another Lefferts Avenue building were never able to obtain their deeds in a rent-to-own programme after the developer failed for years to get permitting, condo subdivision, etc., and then reneged on the handshake deals once he collected the permits and property values soared. This among yeshiva alums who knew each other and farbrenged together!!!

Then there's the infamous case of Rabbi Fisher, a community official who allegedly fled to Israel after it was found that he allegedly placed community owned apartment blocs into his personal name rather than the community's. For decades, the name Fisher was equivalent to that of Satan in the community.

I daresay that every time I visit Crown Heights, I hear more tales of woe, true or imagined, about one Habadsker fleecing another and talking about it... both favoured pastimes in Crown Heights.

That's all aside from a probably-Illegal home sales scheme sponsored for some years by the Bes Din and/or Community Council where Habadskers were proscribed from selling their homes to "schvarzers" or even to each other except through the local rabbis. Every potential seller and purchaser had, under the Bes Din's threat, to list their sale property and desire to purchase. I understand that this system eventually collapsed sometime before the recent asset price bubble.

[RJBZ]

This is the Ezaguis wifes version:
...Again with Pidyon...

To: My Jewish Brethren and Lovers of Justice,

My name is Reina Ezagui.

I used to live in Crown Heights with my wonderful husband Eliyahu and our four childrenbut we moved to Israel two years ago.

Make no mistake: I stand by my husband 100%--which is exactly why you need to hear what I have to say. Forget the rumors. I want to tell you what Eliyahu's ongoing legal battles are doing to our family.

Many of you know my husband's story: The story of how a good man did all he can to help build up Crown Heights when others thought its community was a lost cause.

But for the past ten months, my husband has been under house arrest in Crown Heights. And to make matters worse, Eliyahu was indicted in federal court over Pesach.

Eliyahu and I share four beautiful children.

Our oldest son, an IDF soldier, lost his dominant arm during the Gaza war three months ago. His obvious daily struggle pales in comparison to his flashbacks and terrible phantom pain in his missing limb. He's had two operations since--and is due for a third.

Because I also must care for our small children too, I have been unable to give my son the emotional support he requires. He needs his father. He has been left alone with more than a young soldier can bear, no matter how valiant he may be.

But it gets worse.

Our baby walks around searching for her Abba all day, begging Hashem to bring him home.
Our six-year-old talks about Abba incessantly. She suffers from terrible panic attacks at night. She often wakes up screaming that she will not let anyone hurt her Abba.
Our 17-year-old daughter is angry, lost, and struggling through this difficult age without her father's guidance.

We have no family in Israel--leaving a struggling wife alone under horrific circumstances.

Eliyahu dedicated the last 15 years of his life building up Crown Heights after receiving a remarkable brachah from the Rebbe!

Remember that 15 years ago was the aftermath of the 1991 riots. Although those times are forgotten now, Yidden were terrified of the future then. Many were looking to leave.

But Eliyahu knew this would send the wrong message: Incite a riot in a Jewish community, and the Jews will run.

Tragically, that is exactly what happened in our bloody history, time and again. Eliyahu was determined to not let it happen again.

Armed with the Rebbe's brachah for success, and his own strong will, Eliyahu asked his mashpia of ten years, the late Rabbi Eli Chaim Roitblat, how to proceed.

Eliyahu was instructed to simply start shoveling: To take physical action to draw down the spiritual blessing.

From that point on, Eliyahu did exactly as he was told--and continued working tirelessly for 17 years. One family at a time, agreements were made and hope was restored. People invested money in projects for the sake of building up the community. If the project was a success, they would be able to close on an apartment at a later date. If not, they were to get their money back--period.

Eliyahu's first few projects were successful. One building was built at 1227 President St. (12 homes) and another at 762 Empire Blvd. (with 30 homes). Unfortunately, the last building, a project on East New York, was not successful.

Eliyahu fought with all his might for years to try and save this building--but to no avail. The people lived in the apartments for many years and Eliyahu paid the mortgages for ten years, in excess of TEN MILLION DOLLARS.

We lost everything to keep these people in the building we built for them.

We lost our own home. (Which is why we're in Israel.) We lost our credit.

As G-d is my witness, I assert to you right now: My husband is innocent of causing any intentional harm to anyone!

But he can no longer support us or afford proper legal representation to defend himself. Legal fees are astronomical. Eliyahu MUST get a fair hearing to be set free. Time is of the essence. THE MITZVAH OF PIDYON SHEVUYIM is very great.

I am BEGGING YOU, the shluchim worldwide. Please: Hear the plea of a heartbroken Jewish wife and mother--please help me keep my husband out of prison!

Sincerely,

Reina Ezagu

[Bill]

"how is he different from any other crook. he aaid what it took
to get the sale done." Alex

Alex,

the difference is that most crooks and their lawyers realize that they cannot sell the same BS to the jury as they did to the victims.

trying to do so only hightens the chutzpah and exacerbates the panalties.

all suspects are, of course, innocent until proven guilty.

[R]

"We lost our own home. (Which is why we're in Israel.) We lost our credit."

I don't re-call those who have no money and zero credit having the ability to move to another country. Infact it's less likely it'll happen.
I feel for these kids, growing up with a father who only thinks about his own self greed.

Anyway, she can forget people being able to donate for her cause as everyone just gave their gold for rubishcan.

[harold]

How is he different from any other crook? He said whatever it took to get the sale done whether it's Rebbe/Moshiach/Mitzvah whatever. This was his targeted audience

Completely true since his victims were members of Chabad.

[effie]

The wife is lucky she's not a co-defendant in this case.

[Alex]

I frankly do not understand this case at all. How dumb were those so called "victims"? They paid the money then moved in but never got the deeds? If they did get the deeds how did Ezegui get the mortages under their names? Did he forge the documents?

My gut feeling is that Ezegui will get off the hook because both parties seem guilty. I am sure the so called "victims" did a lot of unkosher things that will get suppresed in this trial and make the whole situation go away. (ex. Large amounts of cash exchanged under the table, tax fraud, etc). There is too much inconsistincy on both sides of the equation.

[Moisheleh Deh Gunef]

Can't scream Anti-Semitism when Jews steals, rob, lie, fornicate, embezzel from a fellow Jew.

The Abishter says it's OK.
So it's OK.

What's the problem. They are religious Yiddelach that he cheated so let them sleep on the street since it is the wish and desire of the Abishter.

Ooomain!

[Aunt Libby]

The wife's letter is written too perfectly. Wonder who paid for the PR person to write it?