David Cohen and Herbert Friedman – two former senior staffers at the beleaguered Metropolitan Council on Jewish Poverty, the New York City Jewish Community’s anti-poverty arm – were arrested and arraigned today in Manhattan on fraud and theft charges in the ever-deepening scandal surrounding the alleged theft of at least $5 million from the anti-poverty organization under the direction of the Met Council’s former CEO William E. Rapfogel.
File photo: William E. Rapfogel, left, and David Cohen, right
Updated at 5:03 pm CST
2 More Arrested In Metropolitan Council On Jewish Poverty Scandal
Shmarya Rosenberg • FailedMessiah.com
David Cohen and Herbert Friedman – two former senior staffers at the beleaguered Metropolitan Council on Jewish Poverty, the New York City Jewish Community’s anti-poverty arm – were arrested and arraigned today in Manhattan on fraud and theft charges in the ever-deepening scandal surrounding the alleged theft of at least $5 million from the anti-poverty organization under the direction of the Met Council’s former CEO William E. Rapfogel, Newsday reported.
Rapfogel is a Modern Orthodox Jew and a pillar of his Lower East Side community.
Cohen is a haredi rabbi and, also served as the CEO of Hatzolah, the haredi EMS ambulance service, after leaving his day-to-day duties at the Met Council. He left that position late last year due to the scandal.
Cohen was the Met Council’s executive director from 1989 to 1992 and served as its executive vice president from 1992 to 1995, after Rapfogel was brought in to handle the day-to-day operation of the charity. From that point onward, Cohen served as a paid consultant for the Met Council until August 2013, when his relationship with the charity ended in the wake of the scandal.
Friedman was the Met Council’s CFO from 1991 to 2009.
Both Cohen and Friedman pleaded not guilty.
Both men were ordered to surrender their passports.
Cohen and Friedman allegedly conspired with Joseph “Yossi” Ross – a prominent Breslov hasid and the owner of Century Coverage Corporation – and Rapfogel to steal millions in anti-poverty funds. Some of that money was allegedly kicked back to New York City and state politicians in the form of bundled campaign contributions.
Ross has already pleaded guilty to grand larceny and money laundering in the scheme and is reportedly cooperating with the criminal investigation into Rapfogel.
The criminal complaint against Cohen and Friedman reportedly says each told prosecutors "that in or around the early 1990s and continuing up until August 2013, they conspired with Rapfogel and others" to collect kickbacks on insurance payments made to Ross’ Century Coverage. "I am informed by the defendants that the proceeds of the scheme were usually distributed in cash," the criminal complaint continues.
This appears to mean that both Cohen and Friedman are cooperating with the criminal investigation into Rapfogel, as well.
Rapfogel – who issued a vague public apology when the scandal became known – was later arrested and charged. He is currently free on bail awaiting trial.
The actual loss to the Met Council may exceed $7 million, with some insider estimates claiming the loss tops $50 million.
After a months-long ban, the Met Council was recently allowed to accept city and state funding again, but with significant, long-lasting restrictions.
Links To All Metropolitan Council On Jewish Povery Scandal Posts.