Satmar Schools May Go Down In Massive Bankruptcy Fraud Linked To Rubashkin Crony

Satmar’s massive United Talmudical Academy network of schools is being sued for $200 million dollars by the bankruptcy trustee for Allou Healthcare, the Satmar-hasid owned pharmaceutical, healthcare and beauty supply wholesaler whose owners were imprisoned for fraud.

 

Satmar Schools May Go Down In Massive Bankruptcy Fraud
Shmarya Rosenberg • FailedMessiah.com

Satmar’s massive United Talmudical Academy network of schools is being sued for $200 million dollars by the bankruptcy trustee for Allou Healthcare, the Satmar-hasid owned pharmaceutical, healthcare and beauty supply wholesaler whose owners were imprisoned for fraud.

In federal court records filed in Brooklyn, the trustee claims as far back as 1997, UTA was helping Allou owner Victor Jacobs (Jacobowitz) and his family hide the fact that he was presenting false financial records in order to get larger lines of credit from its lender, the New York Post reported.

UTA, which owns tens of millions of dollars in real estate, could be forced to liquidate those properties if it loses the lawsuit.

Allou paid Agriprocessors $3.2 million dollars almost a decade ago. When asked in a deposition what his company did in return for that payment, Agriprocessors VP and head of Nevel Properties Sholom Rubashkin replied, "nothing."

Agriprocessors was later forced to repay almost $1.4 million to the bankruptcy trustee.

Nevel Properties also accepted large payments from Allou, but the immigration raid on Agriproicessors and the resulting chaos in Postville appears to have stalled the trustees recovery effort.

Rubashkin would later claim the payments to Nevel were for surplus meat.

Allou did not deal in kosher meat, foodservice or provide meals.

The suit against UTA is expected to go to trial in early 2012.

Comments

[WoolSilkCotton]

Oy, nebech nebech, those antisemitic judges and prosecutors.
Don't they know not to interfere with the Torah Way of Life, which requires frumma yidden to lie, cheat, and steal all the time?

[OMG]

I never understood why Satmar was so gung-ho with supporting SMR’s fund raising, this story might be the respond, they were together, fleecing public companies.

[OMG]

Please allow me to add on my second line of thoughts. Moreover, all idiots where commenting about how the SMR saga brought together Satmar and Lubavitch, and how this is a sign that Moshiach is at the doorstep. Yea it was always about money and corruption.

[Ken]

I wonder what the tachlis is here. Does UTA have any assets other than the real estate of their school buildings? Could they possibly have $200 million in real estate? And is there anyone other than Satmar willing to pay for school buildings in a Satmar neighborhood were the buildings to go up for auction?

Much as I would love to see the collapse of the Satmar school system and their integration into the public school system, I doubt this suit will do it. Though it might send some more hasids to jail.

[WoolSilkCotton]

OMG, good analysis. It's like when mafia factions form an alliance for some criminal enterprise.

++When asked in a deposition what his company did in return for that payment, Agriprocessors VP and head of Nevel Properties Sholom Rubashkin replied, "nothing."++

This shows you what an idiot SMR is, and why he is serving 27 years.

At a deposition, every word is as if you are saying it to the judge and jury. He could have said "I do not recall that at all" or "I don't remember the details". Instead, it sounds like he just arrogantly didn't give a shit about the implications of what he was saying, or that maybe he is a complete moron, or both.
Didn't his lawyer coach him before the deposition? I'm sure they did, but he couldn't have cared less. He was sure of himself that he would get off.

[Jeff]

Oy, nebech nebech, those antisemitic judges and prosecutors.
Don't they know not to interfere with the Torah Way of Life, which requires frumma yidden to lie, cheat, and steal all the time?

Posted by: WoolSilkCotton | October 31, 2011 at 11:14 AM

Heh!

There's something inherently wrong with a system in which people who refuse to educate their children beyond - what is it, like, the fifth grade? - are able to build corporate empires worth hundreds of millions of dollars.

[mmm]

i think that the satmer support for SMR was genuine. remember the owners of ALLOU are all in jail and have been for years. lets face is Satmer powerful and connected origination the court wont order the UTA to action of their buildings.

[Jeff]

I never understood why Satmar was so gung-ho with supporting SMR’s fund raising, this story might be the respond, they were together, fleecing public companies.

Posted by: OMG | October 31, 2011 at 11:25 AM

My nephew told me at one point that they hate him, a Lubavitcher, more than they hate me, a frei yid. Then, sometime later, he told me a lot or most of the animosity between the two groups had blown over.

I've been told they have an organization that brings kosher food to Jews - all Jews - in hospitals in NYC. At the same time, I've also been told by a Satmar kid, a product of their system of "education", that I'm going to hell.

Who knows how they think? Who cares?

[Deremes]

I never understood why Satmar was so gung-ho with supporting SMR’s fund raising, this story might be the respond, they were together, fleecing public companies.

Posted by: OMG | October 31, 2011 at 11:25 AM

I highly doubt that you believe what you wrote.

[jancsipista.]

there is an elvis pressly song called youre the devil in disguise, anyone heard of it? it pertains to the religious ones who disguise themselfs in their clothing fooling themslefs by repeating how holy their leaders are well surprise they are the exact opposite.

[MM]

Um, the "Devil in Disguise" is a seductive woman, not a religious hypocrite:

You look like an angel
Walk like an angel
Talk like an angel
But I got wise
You're the devil in disguise
Oh yes you are
The devil in disguise

You fooled me with your kisses
You cheated and you schemed
Heaven knows how you lied to me
You're not the way you seemed

However, it would be easy work for our own beloved YL to recast the song so it has the meaning jancsipista ascribes to it.

[A E ANDERSON]

Why would a Satmar yeshiva give a Lubavitch-owned company so much money? It would not seekm unreasonable for the Satmars to buy meat to feed their yeshiva students. Also, isn't there an Allou meat company that does the Satmar schechita?

[jancsipista.]

mm- i love that song and others of elvis like return to sender:))

[MM]

jancsipista, hunka hunka burning love to you! :-)

[rebitzman]

Why would a Satmar yeshiva give a Lubavitch-owned company so much money?

In spite of SMR's statement that it was money for nothing, it is my understanding that Agriprocessors did occasionally rent out the line to the Satmars so they could do their own schechita.

Now is that worth $3.2 million in rent?

[Yochanan Lavie]

Just for you- not my best, but I tried.

Apologies to Elvis (Devil in disguise):

Chorus:
You look like a chosid
Schuckle like an chosid
Hustle like an chosid
But I got wise
You're the Soton in disguise
Oy, yes you are
The Soton in disguise

You fooled me with your black hat
You cheated and you schemed
Heaven knows how you're funded
Your assets will be seized

chorus

I thought I was in Gan Eden
But I was scandalized
Ribbono shel oylam, I didn't see
Through all your pious lies

chorus 2x

(Return to Sender)

Return to shtetl
Return to shtetl

I wrote a letter to the rebbe,
he put on his black hat.
Bright and early next shachris,
he sent my letter back.

Chorus:
He wrote upon it:
Return to shtetl, madness has grown.
No such chumra, ask the Vilna Gaon.
I had a kasha, a proven fact
I asked a shailah but my letter keeps coming back.

So then I slipped it in the Kotel
And davened fervidly.
Bright and early next shachris
it came right back to me.

chorus

This time I'm gonna take it myself
and put it right in his Ohel.
And if it comes back the very next day
then I will say "Oh well" -the Rebbe's deceased

Return to shtetl, madness has grown.
No such chumra, ask the Gaon.

Return to shtetl 3x

[seymour]

Posted by: Ken | October 31, 2011 at 11:37 AM

the building are in a very hot real estate market in Brooklyn

it would get big bucks

[SkepticalYid]

Yochanan, you are amazing!

[seymour]

I am just getting bored already,

frum scams fraud are not interesting anymore it is just a daily occurrence and almost not newsworthy

do you make news going to the bathroom?

[jancsipista.]

Yochanan Lavie- youre a genious keep up the good work i wish i can be like you.

[jancsipista.]

seymour- i never get bored by theese scams, seymour what other things would interest you besides this maybee hassidishe fine upright man or boys are they so rare what do you think?.

[Mike Powers]

Ken -Since tuition to Satamr schools is paid in cash and the teachers are basically paid in cash, at any given point the safe in the Satmar yeshiva's central finance ofice has literlaly hundreds of thousands of dollars + and if money was laundered for these guys you can be certain it is laundered for others , so we have more cash. I bet at any given day the Satamr office has more than a few million dollars on hand to pay vendors, teachers , for laundry and from tuition.
Finally Ken all real estate in NY is worth a fortune.That inlcudes so called undesireable areas which in a few years time become very hot and cool. Try renting an apt in East New York, Central harlem Brownsville not to speak of both areas of Willaimsburg.

[Yochanan Lavie]

Thanks, Skeptical, Jancsipista.

[OMG]

Thank you WSC, I agree with you, form this news article I could surmise that SMR is not the brightest light bulb either. You are right; a deposition is given under the same penalty of perjury, as in front of a judge and jury. We all remember President Clinton.

Posted by: Deremes | October 31, 2011 at 12:01 PM
I do believe it, as far as I remember there was real hate amongst the two factions. Why would Satmar leadership all of sudden support SMR. They never ever supported even one Lubavitcher, the only rational answer is that this is a money issue, where it is important to protect each other.

[OMG]

Posted by: Yochanan Lavie | October 31, 2011 at 05:03 PM
You are great.

[OMG]

Posted by: Jeff | October 31, 2011 at 11:53 AM

The point was not what they care about, and you are right who cares. Nevertheless, I was trying to reconcile an obvious contradiction. Now I think I understand how this working together on SMR’s behalf, came about.

[A E ANDERSON]

Since tuition to Satamr schools is paid in cash and the teachers are basically paid in cash, at any given point the safe in the Satmar yeshiva's central finance ofice has literlaly hundreds of thousands of dollars + and if money was laundered for these guys you can be certain it is laundered for others , so we have more cash. I bet at any given day the Satamr office has more than a few million dollars on hand to pay vendors, teachers , for laundry and from tuition.

This has the makings of a great heist movie script. Alas, diamonds are so much neater to store and steal than heavy piles of US $100 notes.

[Jeff]

Now I think I understand how this working together on SMR’s behalf, came about.

Posted by: OMG | October 31, 2011 at 05:49 PM

You're probably right.

[Yochanan Lavie]

Thanks, OMG.

[Abracadabra]

Yochanan - You are BRILLIANT!!! I get such a laugh from these!

"Return to Shtetl" - HAHAHAH!!!!

I especially love it when you do these well-known oldies. I'm going to be singing that all day...

***Return to Shtetl***

Hey - I just had an idea! Yochanan - why don't you partner with the "Rechnitzer Rejects"? They have some really good songs. Maybe you can work in partnership with them and really publish some of your stuff. Just a thought.

[Yochanan Lavie]

Thanks, Abra.

[WoolSilkCotton]

++...dollars on hand to pay vendors...for laundry...++

++Mike Powers | October 31, 2011 at 05:34 PM++

Since when do the frumma ever do laundry? The only thing they launder is cash.

YL, you are amazing.

[Litvish]

ohel = oh, hell!!

When dat moshiakh dude comes again, we'll just take his t'fillin and shove them up his holy ass.

[OMG]

WSC

Since when do the frumma ever do laundry? The only thing they launder is cash.

lol.

[Yochanan Lavie]

Thanks, WSC.

[seymour]

Posted by: Yochanan Lavie

do you ever think of performing of have people cut an album of you songs

[seymour]

Posted by: Yochanan Lavie

do you ever think of performing of have people cut an album of you songs

Posted by: seymour | October 31, 2011 at 08:34 PM

videos would be better

[Yochanan Lavie]

Seymour: I am considering a book of greatest parodies.

[NeverFrum]

Posted by: Ken | October 31, 2011 at 11:37 AM

"Though it might send some more hasids to jail."

Not to worry Ken, they have more than enough for a minyan there already.

[Hometown Postville`]

Hmmmm.... was this the company where SMR got his REAL education? "How to apply for secured loans with imaginary collateral 101."

[flat earth]

So if the schools close, where will the kids go to not get an education?

[Jeff]

So if the schools close, where will the kids go to not get an education?

Posted by: flat earth | November 01, 2011 at 08:31 AM

I suppose they could stay home and not be home-schooled.

[Duvid Ekstein]

Do You know that the SATMAR school system is # 3 in the STATE OF NY. after the city of ny and of the city of yonkers (as reported in THE NY TIMES )

[flat earth]

Do You know that the SATMAR school system is # 3 in the STATE OF NY. after the city of ny and of the city of yonkers (as reported in THE NY TIMES )

Posted by: Duvid Ekstein

I just love paying my NY taxes. Its like having thousands of foster children.

[Jeff]

Do You know that the SATMAR school system is # 3 in the STATE OF NY. after the city of ny and of the city of yonkers (as reported in THE NY TIMES )

Posted by: Duvid Ekstein | November 01, 2011 at 09:45 AM

No. 3 in terms of what - size?

[MM]

YL, just saw the Elvis parodies. Return to shtetl--chortlechortle.

Thanks for all your clever lyrics.

[Yochanan Lavie]

Thanks, MM.

[spacedout BT]

In 1981 an acquaintance of mine remarked that lately since the DA has been going after fraud in Eastern-origin cults, their defense lawyers have argued about a double standard in scrutiny for Jewish and Christian organizations. In the late 80's it was about fraud among the charismatic tv ministries. In this decade its about yours truly- a long time coming but we were warned