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.