Orthodox Ponzi Schemer Pleads Guilty

29-year-old Gershon Barkany admitted that he stole more than $60 million from investors by promising to invest their money in "risk free" real estate.

Orthodox Ponzi Schemer Pleads Guilty
Shmarya Rosenberg • FailedMessiah.com

A Woodmere, New York Ponzi schemer has pleaded guilty to wire fraud.

29-year-old Gershon Barkany admitted that he stole more than $60 million from investors by promising to invest their money in "risk free" real estate. Barkany promised the investors that if the properties were not flipped, their money would be refunded, News 12 reported.

But in reality, many of the real estate deals were never made, and Barkany pocketed the investors’ money.

He could be sentenced to as much as 20 years in prison.

Related Post: Gershon Barkany Arrested.

[Hat Tip: APC.]

Comments

[WoolSilkCotton; I must be seen to be believed]

'orthodox' and 'ponzi scheme' have become synonymous.

[AE]

'orthodox' and 'ponzi scheme' have become synonymous.

Posted by: WoolSilkCotton; I must be seen to be believed | June 27, 2013 at 01:02 PM

Troll

[Account Deleted]

AE:

Back again today, welcome.

It is fun to spar, but make your case, share your point of view, speak to the issues.

I would like to understand your point of view.

[jancsibacsi]

Yes first you must be orthodox and then the ponzi scheme will follow thats how it works,you cannot have one without the other

[WoolSilkCotton; I must be seen to be believed]

AE Anderson, weren't you exposed here a while ago, as a schemer, cheater, and fraudster? Trying to reinvent yourself without your last name?

[Isa]

This is where sites like this are valuable:

Just because someone does not turn on lights on Shabbos etc, etc, etc Does not mean that they are truly pious

on the flip side

Anyone who believes that one can get good interest 'risk free' has placed greed before reason

[AE]

I have never commented under any different names.

My point is that inane pro haredi comments on the FM board are labeled as trolls, yet similar type haredi bashing comments are given a free pass. Lets apply the same standards to all comments.

[Account Deleted]

Good point AE, but understand that is the definition of a Troll in this venue. If you try and make a case to defend the perp in the story, you can expect in a room like this that abuse will follow. Sticks and stones as they say... Just make your points as articulately as you can, and let the discussion begin.

[AE]

Yes first you must be orthodox and then the ponzi scheme will follow thats how it works,you cannot have one without the other

Posted by: jancsibacsi | June 27, 2013 at 01:10

Yup. Couple hundred thousand orthdox jews in the USA (SWAG number), maybe dozens of ponzi schemers (another wild guess), and now "you cannot have one without the other".

I think we have another.....Troll!

[AE]

Pard - "Just make your points as articulately as you can, and let the discussion begin"

That is exactly my point.

[Yochanan Lavie]

He isn't Orthodox, he is not a Ponzi schemer, Shmarya made it up, you are all self-hating Jews, and I'm not a troll.

(You're welcome)

[Account Deleted]

AE:

It does seem that there is a bit of a problem in the Orthodox community with a disproportionate representation per capita in fraud related crime, when adjusted for the revulsion such a community should indoctrinate in their tribe against such crime.

There also seems to be very few (I never hear one) sermons focusing on the prevalence of dishonesty and fraud.

I do know of an anti internet rally or two, but nothing to bring attention to the danger facing our children from criminal behavior.

[Hal]

Pard, it's not complicated. Kiddushin 30b:

The rabbis taught: A father has these [Biblical] obligations to his son: to circumcise him, to redeem him, to teach him Torah, to get him a wife, and to teach him a trade. Some say, also to teach him to swim. Rabbi Judah said, "Anyone who does not teach his son a trade teaches him thievery."

[Hal]

Why does the picture look like a baseball card?

[AE]

Pard:

I couldn't agree with you more, except that its a huge problem, not a bit of a problem.

[AE]

Its part of the latest gedolim card set.

[NeverFrum]

To build on Pard's point, there also seems to be a high level of acceptance of people who commit these crimes in the community as if they have done nothing wrong (e.g. Holding a kiddush for someone prior to reporting for jail or upon release). Seems like if you are 'orthodox' you are part of the club and the only thing that will cause people to shun you in a community are things like bringing an unreliable hechsher in your house...you know, the important stuff :P

[jancsibacsi]

AE-You are a fool if you beleive in that there are only a dozen fraudsters i am mo live in bp and i see in my block alone 80% get sec.8 food stamps and have work stating that they make only minimum to get all the entitlements a few have their own houses getting sec.8 on it since the house they own is not on their name there are thousands and thousands like this lying to get sec.8 medicaid food stamps and have a doen kids or half a dozen i know it first hand so dont lecture me yourer making a fool out of youreself.

[Moshe in Israel]

I thought something sounded odd that he was able to run a $60mm Ponzi scheme at such a young age.

I mean, how many investors would trust a 29 year old?

Well obviously, one very large investor. According to The Real Deal (http://therealdeal.com/blog/2013/03/29/feds-bust-queens-man-for-50m-real-estate-scam/):

In one stance, one victim invested nearly $47 million when Barkany mentioned a plan to acquire a Manhattan office property and a hotel in Atlantic City, according to the papers.

[ruthie]

i don't mean to offend anyone here...but oh man this guy must have been good. that's a lot of money.
i feel badly for all the people that believed him. they probably said if
neighbor one gave, and neighbor two gave ..i want to be in on it too.. and it just ballooned. must have been an entire neighborhood. not kidding.

and jansci:
same here in monsey. same.exact.thing.

[Account Deleted]

Agree with Jancs, no doubt that fraud is the career of choice in the ultra ortho crowd.

Is it possible that the government does not realize the system is being played?

Any Rabbi (every Rabbi) in a position of authority is responsible for that criminality unless they are openly fighting it, which none do. Sort of makes them invalid links in the supposedly unbroken chain. Kind of makes the whole enterprise pointless if the chain is just a myth.

[ruthie]

government fully realizes...but bloc voting speaks loudly here in new york.

[ruthie]

you sure this is barkany and not balkany?

[Hal]

"Its part of the latest gedolim card set.

Posted by: AE"

Oh my goodness, that's funny. I just spit out my drink.

[Mordechai]

Very soon "WE" will be the objects of racial profiling. We will not be stopped and frisked for Drugs or Guns, but everyone with a Jewish last name will be audited by the I.R.S.
And you know what? The U.S. will be able to wipe out the National Debt with all the stolen money.

Hey, Adolph Hitler, Yumach shemo, took Germany out of a depression just by seizing Jewish assets

[Account Deleted]

He is definitely a crook, dirt bag and deserves to go to jail. His victims? Extremely stupid. ""risk free" real estate." REALLY???