Menachem “Max” Stark
Murdered Satmar Slumlord Looted $3.6 Million From Business
Shmarya Rosenberg • FailedMessiah.com
Slain Satmar slumlord Menachem “Max” Stark looted almost $3.6 million from one of his businesses to pay personal debts, the Daily News reported this morning, echoing earlier reports by Newsday that were also reported by FailedMessiah.com.
Stark was reportedly deeply in debt when he was kidnapped and murdered, and was allegedly using his South Side Associates accounts to keep himself afloat.
The money Stark took came from a bank loan issued to South Side, a 74-unit Williamsburg, Brooklyn residential property that Stark co-owned with Israel “Sam” Perlmutter. The loan was earmarked to operate South Side only. Stark was running the property as it wound its way through bankruptcy proceedings.
Stark “obtained cashier’s checks made out to a multitude of individuals, entities and law firms to pay for personal debts or for use in other real estate transactions,” South Side’s bankruptcy trustee, Jonathan Flaxer, said in court filings.
Those illicit checks were marked “customer withdrawal.”
The month before Stark’s kidnapping and murder, five “customer withdrawals” totaling $267,101.07 were taken from the account.
The month before that, the Daily News reported, over $1 million was withdrawn the same way.
Between June of 2011 and December of 2013, over $3.6 million was improperly withdrawn, court filings say.
The pilfered money was not noticed until after Stark died because, court filings claim, the building’s bank statements were “tampered with to conceal the diversion [of the money.”
Flaxer’s says he has gotten some of missing money back.
“Over $375,000 has already been returned…several parties have agreed to return approximately $240,000 [more] of the missing funds,” Flaxer reportedly wrote in a court filing.
He asked for a subpoena to be issued for Stark’s emails so he can try to locate more of the money. A on this hearing is scheduled for today.
Stark’s partner Perlmutter previously refused to answer Flaxer’s questions under oath.
No arrests have yet been made in Stark's January 2 kidnapping. His partially burned body was found in dumpster on Long Island on January 3.