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.

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    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
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    Anonymous
    Anonymous
    13 years ago

    $12,800 monthly allowence who is insane here

    Anonymous
    Anonymous
    13 years ago

    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.

    Anonymous
    Anonymous
    13 years ago

    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.

    ShatzMatz
    ShatzMatz
    13 years ago

    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.

    Anonymous
    Anonymous
    13 years ago

    If he reads vin:dwek, if u read vin, listen to gods mussar: ayeku?
    One word/multiple meanings. Think. Just for a min. In silence.

    Anonymous
    Anonymous
    13 years ago

    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.

    kishthenish
    kishthenish
    13 years ago

    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!!

    Anonymous
    Anonymous
    13 years ago

    life is to short that for a little bit money or not to sit in jail to sell yourself on this world and olem haba.

    Former Deal Yeshivah Teacher
    Former Deal Yeshivah Teacher
    13 years ago

    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.

    cool masmid
    cool masmid
    13 years ago

    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.

    Anonymous
    Anonymous
    13 years ago

    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…..

    Anonymous
    Anonymous
    13 years ago

    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?

    Sy
    Sy
    13 years ago

    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.

    Anonymous
    Anonymous
    13 years ago

    why do these ganovim always wear giant kappelahs, do they think picking which mitzvot to follow is acceptable….

    Anonymous
    Anonymous
    13 years ago

    Dwek has left a stain on the SY Community that will never be erased.

    f18
    f18
    13 years ago

    Reb Shlomo is a good man, I wish you would all judge him favorably. In end the truth will come out for everyone to see.

    ShatzMatz
    ShatzMatz
    13 years ago

    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.

    Anonymous
    Anonymous
    13 years ago

    Al tudin es chavercha ad shtagia limkomo

    Anonymous
    Anonymous
    13 years ago

    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!!!

    Dude
    Dude
    13 years ago

    Gotta love the yiddin. Whole article is written and all we can comment on is the money he getting from the estate.

    Anonymous
    Anonymous
    13 years ago

    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.

    another deal yeshiva rebbe
    another deal yeshiva rebbe
    13 years ago

    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.

    Anonymous
    Anonymous
    13 years ago

    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!!

    47
    47
    13 years ago

    #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?

    Rebbe in DY
    Rebbe in DY
    13 years ago

    Sue the Yeshiva. Make them sell the buildings…don’t sit on your hands and wait for someone else to do the work or you.