Did The Haredi-Controlled East Ramapo School Board Sell A School Building To Haredim Based On A Rigged Appraisal?

East Ramapo school district officials have declined to release the appraisals used in the sale of Hillcrest Elementary School and 12 acres to a New Square congregation, a sale being challenged as improper by a district parent before the state education commissioner.

The East Ramapo school board, controlled by haredim, fired its long-time attorney last year and hired a attorney who specializes in helping haredim cannibalize school districts they take over.

That attorney orderd a second appraisal of the property discussed below, and the board sold the property to hasidim at what appears to be a price far below market rate.

Now non-haredi citizens of east Ramapo want answers, and the school board is covering up:

East Ramapo denies requests for school appraisals in Hillcrest sale
Steve Lieberman • Journal News

East Ramapo school district officials have declined to release the appraisals used in the sale of Hillcrest Elementary School and 12 acres to a New Square congregation, a sale being challenged as improper by a district parent before the state education commissioner.

A second appraisal procured by the district's lawyer — and approved about three weeks later by the Board of Education — estimated the property's value at $3.2 million, nearly matching the $3.1 million sale price for Congregation Yeshiva Avir Yakov.

The second appraisal came in considerably lower than what officials have said was an estimated $5 million value assessed by the first appraisal authorized by the Board of Education, and the $10.2 million value estimated by the Clarkstown Assessor's Office.

Resident Steve White's appeal seeking to block the sale argues the district failed to get market value for the Hillcrest school property and the board's ultra-Orthodox Jewish members showed favoritism toward the New Square congregation.

The district clerk has denied a request for copies of all the appraisals sought by The Journal News in a Freedom of Information Law request, which included the names of the companies that did the work. The clerk also denied White's request for the documents, according to his appeal.

"Please be advised that your request for copies of the appraisals for and correspondence between school district officials and attorneys with the appraisers is denied," District Clerk Cathy Russell wrote in an e-mail dated Aug. 9 to The Journal News.

"These records are intra-agency materials or attorney/client communications that are not subject to FOIL," she wrote. "Opinions and recommendations that would, if prepared by agency employees, be exempt from disclosure under (FOIL) as 'intra-agency materials' do not lose their exempt status simply because they are prepared for the agency, at its request, by outside consultant such as the appraisers."

The Journal News has appealed the denial to Schools Superintendent Ira Oustatcher, who has been on vacation and is expected back to work today. Russell approved the release of all other documents sought by The Journal News' Freedom of Information request and provided some of the documents.

The district can legally release the appraisals if it chooses to, but is allowed by law to deny the public access to the documents as intra-agency communications, said Robert Freeman, the executive director of the New York State Committee on Open Government. Freeman is considered the expert on the state Freedom of Information Law.

Freeman said that in his experience, most government entities release appraisals, if sought by the public, after the sale has been completed when information would no longer jeopardize a sale or negotiations.

"Although FOIL permits an agency to withhold the documents, it's permissive in nature, meaning the school district, in this case, can choose to disclose the information to the public," Freeman said. "After a deal is consummated, there is no particularly good reason to withhold."

Questions referred

All questions on the decision to withhold the appraisals were referred to the school board's lawyer, Albert D'Agostino of the Long Island-based law firm of Minerva and D'Agostino.

D'Agostino, who advises the board, the superintendent and district clerk, didn't return an e-mail asking for comment. He did not return several telephone messages.

Board of Education President Nathan Rothschild said Friday that he couldn't comment, citing White's appeal with the education commissioner seeking to block the sale of Hillcrest Elementary School.

"In this case, there is litigation out there from Steve White," Rothschild said in a follow-up telephone call on Friday, "and I can't answer."

The Journal News also e-mailed questions concerning the appraisals to board Vice President Aron Wieder, and Trustees Stephen Price, Richard Stone and Suzanne Young-Mercer.

Wieder and Young-Mercer didn't respond to the e-mail. Wieder didn't return telephone calls to his personal phone and to his office in Spring Valley Village Hall. Rothschild said he was told Wieder was traveling in Europe.

Stone responded with a "no comment."

Price answered the questions, writing that he likely would vote to release the appraisals to the public if the issue came before the school board.

"However, as I am at this time unaware of any legal reason why the appraisals should not be released and, since there are no pending bids or decisions on these properties, I would be in favor of releasing the appraisals," Price wrote.

It remains unclear who authorized D'Agostino to seek a second appraisal on the Hillcrest school and property on Addison Boyce Drive in New City, just outside the Hasidic village of New Square.

It's also unclear whether school board members received their own copies of the second appraisal before they voted to sell the school.

Price said he didn't recall being given a copy of the first Hillcrest appraisal and he received the second appraisal from a school board member Aug. 4 during a meeting.

"There is some question regarding the distribution of the second Hillcrest appraisal," Price wrote. "I cannot explain why I did not receive a copy of the second Hillcrest appraisal from the district. ... So, I do not know how this appraisal was distributed to the board."

Price said he didn't recall any board discussion authorizing the second appraisal, but he acknowledged he left an executive session early July 13, when the issue might have come up.

The school board voted 6-1 Aug. 4 to approve the authorization given July 13 for D'Agostino to procure a second appraisal to determine the current fair market value of the Hillcrest School for a $3,500 cost.

Price abstained from voting and Young-Mercer voted against it.

Price wrote that he was not informed between July 13 and 28 that a second appraisal was being prepared other than a possible action after executive session.

The board voted July 28 to sell the school to the New Square congregation.

"I do not know why a second appraisal was needed," he said.

Price said he was traveling on business and missed the meeting on July 28, writing, "I was very surprised to learn that Hillcrest had been sold."

Colton sale questions

Price also said he never received the appraisal for the Colton Elementary School, which the school board voted to close in 2009. The school is now being leased to an ultra-Orthodox Jewish congregation.

Price and Young-Mercer are considered the representatives of the public school families on the nine-member board.

Six Orthodox Jewish men with no family in the public schools hold a majority on the board.

Rothschild also is Orthodox.

Jonathan Burman, a state Board of Education Department spokesman, said appraisals are necessary because a school district has a "fiduciary responsibility to obtain the best possible price for property" owned by taxpayers.

White, an activist and school board critic, contends residents should get to vote on whether they want to sell the school. He noted the district approved the sale even before the education commissioner has ruled on appeals by district parents Peggy Hatton and Antonio Luciano challenging the board's decision to close the school.

White argued in his appeal that the school board "did not make a good-faith attempt to obtain the best price for the school."

His appeal included appraiser Robert Forrest's appraisal that concluded the property's fair market value was $13.2 million. White also noted the district had made $3.5 million in improvements through state funding to the Hillcrest school since 2001.

"The fact that this amount is greater than the sale amount agreed to by the board indicates that the sale amount is wildly lower than the actual value of the property," White wrote.

White's appeal also includes accusations that Hasidic Jewish members of the school board and Richard Stone, who is Orthodox, have ties to New Square and the congregation that purchased the school.

White's appeal included photos of several school board members with New Square leaders and the trustees being referred to as "our candidates from within the community in the village of New Square."

Additional Facts On the Web

Questions about appeals to the state Education Department: http://www.counsel.nysed.gov/appeals/faqs.htm

[Hat Tip: Burich.]

Comments

[SJ]

I watched the Ramapo school board video way back. The Haredim on Ramapo's school board epitomize duplicity.

[David]

Why must all Charedi business dealings be so unethical and corrupt? What a Chillul Hashem! How far they have drifted from Judaism.

[Gateway Pundit II]

Rabbi Ronnie Greenwald, shlita - If you are out there, I would like to know your take on what happened here. If anyone knows, you know. c"v I'm not saying you were a part of anything that might not be yashar, but you would probably know if the board played favorites with the Skverers.
If, and I repeat if the board acted improperly, then this is a horrendous chillul hashem. I pray they did not, but admittedly I have my suspicions. Oy.

[Monsey Hocker]

Ayeholes. Disgraceful. Then we wonder where the hook nosed shyster goniff stereotype comes from.

[small time scandal]

I wouldn't be surprised if there was any serious impropriety in this case. I am not from Monsey, so I don't know.

However, even if the school board acted in bad faith, I don't think that this would be a chillul Hashem. Corruption and apathy are expected generally from school boards across the United States. At worst, this would just be an everyday scandal that most residents wouldn't even want to know about. The few stakeholders who would be pissed at Jews and/or Chasidim are already anti-semites (or anti-chasidim). The other stakeholders would be disturbed by the scandal, but they wouldn't view Chareidim any worse because of it.

School boards are school boards. This was a fact of life when I grew up in North Jersey. It was a fact of life in Palo Alto during my post-doc days, and it's a fact of life in the small, non-Jewish midwestern community where I am now.

[corn popper]

This goes on in LW Ihr HaKodesh all the time

[David]

So they're going to take a school and turn it into a "school".

[Abracadabra]

From 13.2 million to 3.1 million?

You can bet a majority of the school board got paid under the table to push this sale through!

[danny]

How about a referral to the U.S. Attorney's office and the FBI. This sounds like a pretty clear cut case of fraud.

[Aura]

I honestly don't know why I keep reading this blog 'cos it makes me so depressed to see how dishonest and corrupt these people are.

[libby in the hood]

Can you imagine the outrage if the school board was controlled by Muslims?

[seymour]

Ayeholes. Disgraceful. Then we wonder where the hook nosed shyster goniff stereotype comes from.

Posted by: Monsey Hocker | August 16, 2010 at 07:34 PM

you need to remember these people are not Jews just a cult based on Judaism

[Barry]

I have worked for a mortgage banking co., for several years as a loan officer. It was always asked by the appraiser how much we needed a property to come in at before he went to appraise the property.
It never failed, the property always came in over what we needed to make the deal work.
We always had 3 comparables that were sold in the area to affirem his figures.
It doesn't, nor would it be far fetched to believe some sort of deal was worked out.
Proving it is something else, unless you have inside knowledge.
This type of activity is done all the time, and I can attest to various methods where it is done.
Resales, Estates values, were the appraisal will be diminished for tax purposes, out right purchase, again for taxes, divorces, and the list goes on.

[Mr. Apikoros]

Sure. Maybe 10 - 20% above the "true" value. In this case, the property was appraised at between half and a quarter of the "true" value.

[Jewish Honors Student from East Ramapo]

They have taken away freedom of speech for the parents and students and are "allowing" them to speak after the decisions are already made, which is usually in the middle of the night.

If any of you bloggers can help us, please do so. We have reached out to the FBI, Dept. of Education, NYT, WSJ and every government agency. No one wants to get involved for fear of reprisals from the Chasids. Our parents have been threatened along with our teachers for speaking out.

[Jewish Honors Student from East Ramapo]

The article also fails to mention that our school board President, Nathan Rothschild, is being sued for millions of dollars for the third time by his business partners for fraud and embezzlement. He has filed bankruptcy at least three times and this latest lawsuit (his attorney claims) is just to embarrass him) in his community; however, his partners are part of the same community.

"February 24, 2010 On July 16, Nathan Rothschild, President of the East Ramapo School Board, was served at his home with a summons to respond to a $34.7 million lawsuit. There are 12 different accusations in the lawsuit, including breach of contract, fraud, breach of fiduciary duty, conversion, unjust enrichment, interference with contractual relations, and negligent misrepresentation. The plaintiffs who filed the complaint were Elliot Kahan and Daryl Hagler, Rothschild’s business partners.

The situation was not a novel one for Nathan Rothschild. He has faced at least a half-dozen personal lawsuits as well as a tax warrant from New York State in the last decade."

To read the entire article:

http://www.preserveramapo.org/East%20Ramapo/school_board_president_due_in_co.htm

[Shmarya]

Posted by: Jewish Honors Student from East Ramapo | August 17, 2010 at 12:25 PM

I'd like to speak with you about this.

Please email me.

[Dave Twersky is the new Jim Jones]

Not mentioned is the fact that Joy Builders, a builder favored by the Hasidim, will be building on adjacent Clarkstown property (they have owned the land for 14 years but an old easement just expired). The property is presently zoned by Clarkstown for one acre single family homes, however that's not to say that the homes won't have 20 bedrooms and 4 kitchens. Next stop is tax exempt status and Clarkstown Board of Ed.

[David]

If any of you bloggers can help us, please do so. We have reached out to the FBI, Dept. of Education, NYT, WSJ and every government agency. No one wants to get involved for fear of reprisals from the Chasids. Our parents have been threatened along with our teachers for speaking out.

Posted by: Jewish Honors Student from East Ramapo | August 17, 2010 at 12:25 PM

Sheesh. First the Israeli Government is scared of them now the US Government is too afraid to touch them?

[chaim1]

Dear Ms. Gomstyn,
As a """friend and colleague"""" of Nathan Rothschild I am outraged at the news of your impending article based on the ridiculous accusations of a disgruntled committee member. Mr. Rothschild has been a pillar in the community and is actively involved with numerous volunteer positions that he is passionately committed to.
As a journalist for a reputable local paper, you have the obligation to verify whether or not there is any merit to the claims you are reporting. If you choose to print this article then I hope you will at least be honest and fair enough to present the other side of the story by stating his numerous awards and accomplishments as School Board President including the Eddy award (I am sure you have other records of these). And also his many other volunteer positions which he holds in addition to being owner/president of his own private company. Some of his current positions:
Board President of local health clinics
Fire Commissioner and active volunteer firefighter
President of 2 synagogues
Board President – private school
Rockland County Hazmat team
Jewish Burial Society
Mr. Rothschild’s philanthropic contributions to local organizations are endless. He has implemented programs to feed the underprivileged and has personally funded the building of several residential homes for displaced children and much much more.
You would have a difficult time trying to find a more dedicated and committed school board member and local citizen than Mr. Nathan Rothschild.
Sincerely,
Katie Mazzella

Kathryn Mazzella, an employee of NAPD, is identified in the lawsuit papers in a section titled "Nathan’s Improper Use of NAPD Funds." The plaintiff’s attorney writes: "Upon information and belief, Nathan is having and/or had an extramarital affair with Katie. Nathan and/or Katie used NAPD’s credit card to pay for travel expenses, including domestic and international plane tickets for Nathan and/or Katie." Destinations listed in the complaint include Barbados, Israel, Las Vegas, Los Angeles, China, Taiwan, San Francisco, England, Ireland, Italy, Maryland, Marco Island, Florida, St. Moritz, Switzerland, and others.

[Jewish Honors Student from East Ramapo]

I'd like to speak with you about this.

Please email me.

No way. My mom will KILL me if she found out.

[ruthie]

shmarya,

i know someone you can talk with.
i have to get his permission first.
and how do i get in touch with you...what is your email address?

can you give me until next week?

this is backing up jewish honors student from er

[seymour]

Posted by: Jewish Honors Student from East Ramapo | August 17, 2010 at 04:18 PM

not sure you are real. anyway the FBI are no afraid of the chusids as we have seen lately

[seymour]

Mr. Rothschild’s philanthropic contributions to local organizations are endless.

as we have seen this does not in any way say that he is honest, a person can be philanthropic and dishonest

[Dr. Bruce]

Of course, Rothschild's contributions are endless. He has embezzled millions of dollars from his partners and this is the third set of partners from whom he embezzled!!! Do you think he doesn't take money under the table from the vendors of the school district who just happen to be chasuds?

[Pearl of Wisdom]

The ER School Board is having a buy one school at 75% off assessed value, get one next to free! The next school to be sold off is Colton Elementary School. Aron Wieder's (VP BOE) child attends the Yeshiva occupying Colton. That Yeshiva wants out of the lease. The lease would cost more than the purchase of the school at only 75% of the assessed value! Can you say RICO?? This deal does not pass the smell test.

Meanwhile, D'Agostino (lawyer for ER and Lawrence) has a school sitting vacant in Lawrence...hmm...what could he be up to? Maybe the school has to be vacant for 2 years before he can have a school sale out in Lawrence? He has to be more careful out there. The parents are wealthier and many are lawyers themselves! D'Agostino or as the kids in ER call him DogAssTino is a dirty dawg!

[Devorah]

So Nathan takes Katie to Switzerland, Marco Island, Israel, etc. Where does the Mrs. think he is? I wonder if he used any school board slush fund also for these fun trips? The child in Rothschild better be careful because the world is now watching, thanks to Failed Messiah.

Let's hear it from his partners.

[Pearl of Wisdom]

With all of Nathan's shortcomings...and there are quite a few...the real villian in ER is Aron Wieder, next in line would be Eli Solomon. Wieder tells the others how to vote...and he get's his orders from the local Rebbe's and powerbrokers. Eli Solomon is on the zoning board of Spring Valley and has had so many health code violations against him for keeping rental units/houses in a slum state of repairs and takes advantage of the poor Hispanics and Haitians who rent from him. He also curses at the public school parents.

He acts like the public school parents are gum on his shoes. He never speaks at meetings, just whispers to Wieder and D'Agostino. Together, they are the axis of Evil in ER.

[chaim1]

these 'square's have strange bed-fellows

[Pearl of Wisdom]

Richard Stone resigned his position on the East Ramapo School Board tonight. It should be interesting to see who is appointed to replace him.