Deal, NJ – Creditors to be Repaid in Solomon Dwek Bankruptcy Case

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    Deal, NJ – The massive, multi-million-dollar bankruptcy case against Solomon Dwek came to a quiet end today with a court-approved plan that will repay creditors about 30 cents on the dollar.

    Dwek — the government informant behind last summer’s sweeping political corruption and money laundering sting — had filed for bankruptcy long before the federal criminal case came to light, amid the collapse of a real estate empire once thought to be worth over $400 million. But his empire turned out to be little more than a wild Ponzi scheme, which only emerged after Dwek was charged in a $50 million bank fraud.

    After his arrest by the FBI, Dwek began secretly cooperating with federal authorities in a two-track investigation involving the use of religious charities to launder millions of dollars in cash, as well as hundreds of thousands of dollars in payoffs to public officials and politicians to expedite approvals for development projects that never really existed.

    While wearing a wire for the government, setting up friends, former business partners and public officials, the bankruptcy case continued to unfold in federal bankruptcy court in Trenton. Charles Stanziale, the court-named trustee in the case, had found Dwek was running little more than a shell game, promising huge returns on properties that sometimes did not exist, in a Madoff-style scheme that took money from investors and banks to pay off others.

    Stanziale said today that Dwek, 37, the son of a respected Monmouth County rabbi, left a trail of investors who “believed or wanted to believe in his lies, deception and false promises in one of the largest Ponzi schemes in the state.”

    The bankruptcy case required the sale of more than 350 properties and resulted in 140 lawsuits filed mostly against banks and investors who profited from the Ponzi scheme.

    Other lawsuits were filed against the Deal Yeshiva, where Dwek was employed, as well as several charities that received millions in donations from Dwek over the years. The property sales and ongoing settlements are expected to bring in about $35 million against approved claims of well over $150 million.

    “People have to understand there was no free money in this case,” Stanziale said. “We had to create an estate by selling properties bought at inflated prices and sold in a down market.”

    In court today, as Dwek himself looked on, U.S. Bankruptcy Judge Kathryn Ferguson approved what is known as a plan of orderly liquidation, filed by Stanziale and agreed to by creditors as well as Dwek.

    Stanziale will remain in place as the liquidation trustee to oversee the sales of remaining properties and the lawsuits that were filed in the case.

    Dwek, who has been living off a $12,800 monthly allowance paid out of the assets of his bankrupt empire, will continue to receive that money until the case is formally closed. Meanwhile, he recently put up his house in Deal for sale. The large ranch-style home, near the Deal Golf Course, is in his wife’s name, but no one has been living there for months. According to the listing, they are seeking $1.59 million.

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    61 COMMENTS

      • That less than $150,000/year which is less than a first year lawyer or business school grad gets paid. While he comitted serious errors in judgment, his cooperation was needed for the estate to sell the properties and recover even $.30 on the dollar. The monthly allowance is perfectly reasonable and routine for the facts of this case. He will probably serve a short prison term after he finishes testifying in the trials of the New Jersy rabbonim and politicians whose crimes he exposed.

        • That less than $150,000/year which is less than a first year lawyer or business school grad gets paid.

          thats more like double what a first year grad gets paid!!!

          • The allowance granted by the court is not the issue here but rather whether his crimes and those of the others where he will be a government prosecution witness justify the money he is getting. Clearly the court felt yes.

            P.S. Check the starting salaries for most of the top New York law firms and investment banks. Most are in the range of $163K-175k for new hires. Even the second and third tier law firms pay over 100,000/year but that is not the point here.

        • oh shut up, crime he exposed. he caused them to do it to cover his dirty skin. he’s a filthy pig and i can not wait for his day to come. what a horrible chillul hashem he caused!

          • You can properly criticize Dwek for his behavior but only a naive and simple-minded yid would believe that “he caused” these rabbonim and public officials to commit tax evasion, fraud, bribery and theft. These are sophisticated and educated individuals who knowingly violated the law for their own reasons.

            • What are you saying?????
              I personaly know about two of the rabbis that they didn’t know what was going on when they signed papers
              1: rabbi Kassin throughout the whole scandal NEVER knew why EXACTLY he was getting in trouble HE KNOWS HE WAS TRICKED
              2: Rabbi Nahum, although signing papers, he just listened to Shlomo who he treated like a son when Shlomo told him just “sign here and here etc”

            • I am sorry forthese two Rabbonim and I wish on them nothing but the greatest Suyata Dishmaya that they are able to walk away from this mess with no further harm. It is so sad to watch.

              HOWEVER – to all the readers out here and to the person who wrote #22. You MUST understand and realize that ignorance is not a Heter. Foolishness is not an excuse. A person is 100% responsible for their actions and this was not a case of Oines Rachmana Patray. Perhaps we can understand that someone was tricked. it happens and it is terrible to the person who was fooled. But, to sign papers simply because someone who you feel is like a son to you is Tipshus – stupidity – and for that you are responsible for your actions.

              we live in a crazy world where all kinds of shenanigans go on. Protect yourself, your family and your requtation and don’t do things just becasue someone says to.

              I sincerely hope Rabbi Nahum can get through this but everyone here needs to learn from this that ultimately you are responsible for your actions even if they were careless or with good intentions.

            • You know NOTHING. Why dont you go to the APP.COM, Asbury Park Press. type in the Rabbis names. Not only will you see the story, you will read the quotes from their MOUTHS detailing what they did, with who, amounts, and for how long!! When a pedophile in your community pleads guilty, most of you claim he is innocent and had no choice in an anti-semetic court and HAD to pleade guilty. Well, PLEASE go to the press and you will see your rabbis EXPLAINING in detail the crimes they commited. They even disclose how much they PERSONALLY took. They did it for over FOUR years…..not to help anyone but but themselves. If you are going to stand behind these criminals, at least own it and be truthful. You really need to change your screen name from I KNOW to IM BLIND.

            • Read the article before you DARE try to speak down to me. Read it from the thieves, uh, I mean Rabbis own mouths. THEY ADMITTED EVERYTHING. What does it say to the world when your leaders are criminals and you stand by them, BLINDLY, even when they admit what they did. You expect anyone to take you seriously? Its like you have a mental defect and it wont sink in. Denial aint just a river.

            • You have severe issues. Either you hate Rabbis or you are stam a blithering idiot.

              And… don’t believe everything you read, otherwise you’re the fool!

            • I told you where to go, and I told you what you would see. They are quotes from your precious angels themselves while in court. Even if they told you to your face you wouldnt believe it. That is so very sad. Your G-d attempted to give you the gift of a brain, and you refuse to use it. I learned a long time ago you cannot argue facts with irrational people. You will not see what is RIGHT IN FRONT OF YOUR FACE. No matter what you think, their fate is sealed, and justice is swift.

            • First of all, show me where Rabbi Kassin says he willingly did illegal activity.

              Second, why are you so angry? Were you out in the heat to long or do you just absolutely HATE rabbis. What’s really your story. Please tell us.

            • i take him seriously.and i agree with him. your the one with a mental defect and is blinded by everything he hears and reads in the media.

            • And you’re ignorant and think you know everything. Are there any quotes from Rabbi Kassin about what he did? Please tell me where to find them.

              Rabbi Kassin had no clue that what he was doing was wrong.

              You know Nothing. Be truthful.

            • Look at the first sentance of my post. I TOLD YOU EXACTLY WHERE TO GO. I even told you what to type in. Those two little things above that huge mouth of yours are things called eyes……use them.

            • So, to be sure I understand…

              Your claim is that Orthodox Rabbis were of the opinion that taking a donation, returning 90% of it, and providing documentation that 100% of the amount had been donated, was legal?

            • Not true. Some were sincerely unsuspecting individuals who were tricked into illegal activity. I know for a fact that Rabbi Kassin didn’t even know what money laundering is ar that it was illegal at all. Poor Rabbi. He did NOT KNOWINGLY EVADE THE LAW.

        • As a current law student, in this economy it would be nice if the prospects were as rosy as you say they are!

          That money is a thing of the past, except for those few Ivy League grads that get the big law jobs.

          The point is, that kind of money is definitely not what a crook should get (he lacks any formal education and he stole lots of other people’s hard earned money!)

          • food stamps and medicaid is too generous for this pig.
            why should WE have to be supporting him with our tax money!
            let him beg for food and/or starve, just like he caused to happen to some of his investors!

    1. I can’t understand why he would be allowed to keep the money for the sale of his house. He used other peoples money to pay the mortgage payments. He is nothing but a crook and a trader. He now has no family besides for his wife , kids, and other siblings which follow him. He turned his back on so many institutions by sueing them after giving them donations. I’m ashamed to know him and his family personally and the ultimate judge will give him his real sentence. He got away with all this in this world but not in the next.

    2. makes me sick. him and his family in palm beach for pesach while the ppl he ratted suffer. yeish din veyeish dayan.he will get his due .by the way known fact dwek reads vin.

    3. I have had no peace since this story broke. I pains me on so many levels. I just pray to live long enough to witness with my own eyes the downfall that is in store for this Dreck.

    4. Less than a first year lawyer? Wow! Your reality is far rosier than mine. I know attorneys with years of experience who don’t make that. People who earn over 150k are in the top few percent of wage earners in the country. But very often, those who ween that much seem to think that everyone else does, too.

    5. Wow this guy is a piece of work. Screw everyone u ever knew get paid for it and walk around like it never happened, may he have a slow and painful young death!!

    6. What about us Deal Yeshivah teachers who didn’t get paid for the last 6 months of teaching but continued to drive in from Lakewood daily (at our own expense) for the sake of the students education? Will we also get something out of this settlement? I can’t speak for the other teachers, but being owed about $8000 from Deal & struggling just to put food on the table, I would take the 30 cents on the dollar if its offered.

    7. The real issue is the fact is every penny he’s getting is not his money, but the money that should be going back to the lenders and private investors that he stiffed. Its that simple he’s living on stolen money and its beyond me how this was approved by the court. And his house – I don’t care who’s name its on, the sale of the house should go towards paying the people that he owes money.

    8. Why are ppl sticking up for this mamzer?????
      Ain lo chelek le’olam habah
      He’s a mosser and going straight to gehenom
      And P.S. I ALSO blame his father. A Mosser belongs in Cherem and his father who is (supposed to be) a talmid chacham should be the FIRST to excommunicate him, yet all the dreks (oops, I mean dweks) are talking to him…..
      Explain that to me…..

    9. why does he get off so easy, while Rubashkin, who was certainly not as devious lingers in prison with a potentially heavy sentaence hanging over his head?

      • Because unlike Rubashkin, Dwek has worked the judicial system with the same charisma and finesse that he worked his victims. Sad, but utterly true. Not defending what he did, not condoning what he did, in any way. But this is the answer to your question. It is a perfect example of some of the imperfections in a democratic judicial system.

    10. For a fact he does read vin. -Dwek you really consider yourself a religious Jew? You are fooling only yourself-we all know the real Dwek. I remember You used to say all the sy electronic guys are lowlifes, I got news for you-you are the KING of Lowlifes!! What you did to the community & your own family is unbelievable. Im sure we will hear in a couple of years how you swindled some new victims.

    11. I have had no peace since this story broke. I pains me on so many levels. I just pray to live long enough to witness with my own eyes the downfall that is in store for this Dreck.

    12. So Rubashkin gets a reccomended life sentence, and this scum gets to keep his multi million dollar deal home, a posh 12k/month pension, and little or no prison.

      VOTE OUT THE DEMOCRATS BEFORE ITS TOO LATE. VOTE OUT OBAMA. VOTE THEM OUT!!!

    13. Bank Fraud on Rubashkin and Bank Fraud caused Dwek to Rat. Why do Jews borrow money from banks that can impose life imprisonment for exagerrating what your business is worth. Then go to a judge and jury that hates you for a sentence. Jews should band together and only borrow from lenders in a business to business relationship that can result in fraud charges but not BANK FRAUD. These banks make their living off of Jews they must not use BANK FRAUD as a weapon to enable them to make money. Jewish business must organize a different lending system that is just and business like without a bullet to the businessmans head.

      • What a ridiculous post! “Jews should band together and only borrow from lenders in a business to business relationship that can result in fraud charges but not BANK FRAUD.” ….. why dont you just pay what you owe and stop trying to look for banks that will cater to your deliquent payments and criminal activity. All that has happened in your community, shouldnt you take a stance to follow the laws once and for all instead of banding together to cheat more?? You will never thrive as long as you deciet everyone.

    14. I am also one of the rebbes which worked in dy. I can’t seem to figure out how that other rebbe is only owed $8000 if he didn’t get paid for 6 months. His salary was certainly more than $1100 monthly. It seems he was paid a lot of what was owed to him and its more like 2 months or so that he was missing. As to why we contnued to work even though we were behind, there are multiple reasons. First, as per the gedolims psak a rebbe isn’t allowed to walk off his job even though he is behind in pay checks. Second, at the time the yeshiva was going to be taken over. If the rebbes would have walked off, we would have jeprodized our jobs and chance of the school being closed down. It didn’t end up being taken over and we lost our salaries and jobs but that was not to be forseen. The rebbes in general are owed more like 20000 and the rabbi in charge says he has no money. What about selling the 2 buildings which are worth a combined 7 mil. Plus there are houses the school owns which can also be sold worth another few mil. He doesnt seem to care and is holding on to everything. That’s the truth! Its outrageous but no one seems to care about it except those that are owed.

    15. Dwek not only are you a criminal, thief, liar, dog with no conscious you are also a murderer as u have murdered your own children. No good will ever come to your children, as you have turned them into outcasts with no future with the Jewish people.
      Murderer!!

    16. #52 Rubashkin is a victim of scapegoating. Are you saying he deserves this because he is guilty of BANK FRAUD? Or is your comment only against the Syrians. What did a syrian ever do wrong to you?

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