New Jersey – Lakewood Rabbi, Others Arrested In FBI Raids Over Alleged Welfare Fraud

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    FBI conducting raids  in connection with a public-assistance fraud scheme in Lakewood, N.J.(The Asbury Park Press via AP)Lakewood, NJ –  A New Jersey rabbi and his wife and three other couples defrauded state and federal public assistance programs out of more than $1 million by underreporting their incomes, according to criminal complaints released Monday.

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    One of the couples continued to receive Medicaid assistance for their children despite making more than $1 million in both 2012 and 2013, according to one criminal complaint. Another continued receiving benefits in 2014, even though they made $1.8 million the year before, prosecutors said.

    Ocean County Prosecutor Joseph Coronato said more arrests are expected as a result of the investigation centered on Lakewood, a New Jersey shore town that is home to a large and growing ultra-Orthodox Jewish community.

    Rabbi Zalmen Sorotzkin, of Congregation Lutzk, and his wife, Tzipporah, were charged with collecting more than $338,000 in benefits prosecutors said they weren’t entitled to. Their attorney said they will plead not guilty.

    They were charged in state court along with Mordechai and Jocheved Breskin, who prosecutors said collected more than $585,000 in benefits they weren’t entitled to.

    Zalmen Sorotzkin’s brother, Mordechai, and his wife, Rachel, were one of two couples charged in separate federal complaints with conspiring to fraudulently obtain Medicaid benefits.

    They made more than $1 million in 2012 and in 2013, the complaint alleges, but still received more than $96,000 in Medicaid benefits, including $22,000 to pay for medical expenses when their sixth child was born in November 2013.

    “Everything is going to work out and all will be vindicated,” said Rachel Sorotzkin’s attorney, Fred Zemel.

    The couples charged in federal court were released on $100,000 bond and their travel limited to New Jersey, New York and Pennsylvania, while the couples charged in state court were released without bail, but had to surrender their passports.

    According to a federal complaint, Yocheved and Shimon Nussbaum hid their income by creating companies that were run by relatives on paper, but that they actually controlled. They made a total of $1.8 million in 2013, but still received Section 8, Medicaid and food benefits into 2014, prosecutors said.

    The investigation was initiated by the FBI and the New Jersey Office of the State Comptroller. It later expanded to include U.S. Social Security Administration, the state Department of the Treasury and the Ocean County prosecutor’s office.

    “Financial assistance programs are designed to alleviate family hardships for those truly in need,” Coronato said in a statement. “My office gave clear guidance and notice to the Lakewood community in 2015 of what is considered financial abuse of these programs.

    “Those who choose to ignore those warnings by seeking to illegally profit on the backs of taxpayers will pay the punitive price of their actions.”


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    81 Comments
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    6 years ago

    Here we go again! Unfortunately the FBI doesn’t give out medals for the ehrliche yidden but they exist so let’s focus on the good people in the community who wake up every morning to do the right thing!

    TruthIsIt
    TruthIsIt
    6 years ago

    Very nice, now every Goy will look at me today…..

    Realist77
    Realist77
    6 years ago

    The community will claim “anti-Semitism” as opposed to looking at the fraud they committed. What a chillul Hashem. Benefits are supposed to be an aid, not a lifestyle. The FBI should continue to crack down on these thieves.

    Barzilai
    Active Member
    Barzilai
    6 years ago

    This court of public opinion has already convicted him and denied any appeal, even though the facts haven’t been proven, and there are certain types of income that do not have to be reported in public aid applications – like gifts from a parent that chooses to support his children. Exactly who are the anti-semites?

    Mark Levin
    Mark Levin
    6 years ago

    4,

    I hope HKB’H judges you more favorable than your judge them. SHAME ON YOU!!!

    ShoinTzeit
    ShoinTzeit
    6 years ago

    Time for the frum community to acknowledge that honesty and integrity are also Torah values. Hopefully this high-profile raid awakens our community.

    sholkramer
    sholkramer
    6 years ago

    Once again this self hating jewish website is printing names of people accused of a crime no convicted.

    AlbertEinstein
    AlbertEinstein
    6 years ago

    We need classes on dinah d’malchusah dinah.

    kehati
    kehati
    6 years ago

    Obviously nobody should condemn anybody unless and until all relevant facts have emerged and been proven. Having said that, it’s astounding that so many in our community avail themselves of welfare and make it a way of life. Our parents/grandparents came to this land as broken Holocaust survivors, and to get established, often worked in menial jobs in factories, yet would never have thought of taking a penny from the government. Were they suckers? I doubt it – they were our role models. There is little question that this dependence on welfare leads to a moral corruption in our community with all of the consequences that we see all too often.

    6 years ago

    This is in indictment of the the crum hashkafa of relying on government programs to support our expensive religious lifestyle. This crum haskafa has been actively pushed for decades by many in leadership positions in our community both here and in Eretz Yisroel and passively pushed by leaders who did not speak out vociferously against it. There are three things needed to right the ship and correct this problem. Firstly our leaders have to encourage our children to get a proper education so that they are capable of earning an honest living prior to getting married and have to telegraph a positive message about the work ethic. Secondly the wealthy people in our community have to fund our educational institutions so that parents are not bankrupted because of the high tuition. Thirdly the wealthy people in our community must fully fund educational programming for special needs children so that families with such children do not have to become impoverished trying to help their kids.

    Buchwalter
    Buchwalter
    6 years ago

    Maybe getting a gainful employment would solve the issue

    mr613
    mr613
    6 years ago

    It’s unfortunate that these individuals and they’re beneficiaries cannot or are unwilling to survive without committing fraud. The system they follow awards high praise for choosing voluntary poverty status.
    Learn in kolel and no worries…… programs….. handouts…..

    This lunacy is unsustainable it will and is emploding !!!

    triumphinwhitehouse
    triumphinwhitehouse
    6 years ago

    here come the false claims of “anti-Semitism” they even had a man escort the man and a woman the woman. The FBI can easily do this weekly if they wanted in Lakewood, KJ, Willy, BP and Monsey. This I hope is a start, now all the heimish orgs. that do nothing for tuition paying parents will submit letters of support for these not as of yet guilty felons to ask for leniency. This is what the decent real Americans of Toms River and Jackson want to avoid.

    6 years ago

    The name rabbi ? Zalmon Sorotzkin !!!what a bezayon to be arrested .We dont care if he is guilty ,or inocent. Because If you are a clean yid who doesnt cheat, lie and steel they will not arrest you, period. ! ! ! Some thing he did do —- my nakfka mineh , something shmutzig Dos haist a chillul hashem on all klall yisroel . It all comes b/c no parnaseh , Vechay bohem says chazal zeh parnoseh .A rosho steals even from a malchus horisha fehhhh

    thegreatone
    thegreatone
    6 years ago

    IF they are convicted what a Chilul Hashem. And that is IF.

    Unbelievable to watch the nasty comments thrown at Frum Jews.But,that’s life.

    However,these same Orthodox Jew haters get offended when we say things against Zionism and the Torah forbidden state of Israel screaming: Loshan Hora” “Loshan Hora”.

    6 years ago

    if he’s realy clean he would not be arrested ,even genaivah from a malchus horisha is an issur dorysah they say vechay bohem zeh parnosah . A chillul hashem especialy with such a hi profile name

    fat36
    fat36
    6 years ago

    I know someone who lives on section 8 had Medicaid all the benefits and have to give it up when he got a job. Now he feels like he’s an ATM machine for the government he has to work his tail off to come home with a few extra dollars after paying rent insurance and taxes he’s basically worse off now than he was before. Killing himself I’m left with nothing.he feels he should’ve stayed with all those benefits that he had I found a cash job

    Shlomo2
    Shlomo2
    6 years ago

    It would appear from new reports that the people in question were not lacking advanced degrees and got on to FBI radar BECAUSE of the their involvement in businesses tied to their use of their advanced degrees.

    6 years ago

    IMHO the main aspect of this story is not kolel. As in other frum communities,many in Lakewood live a lavish lifestyle and there seems to be a lot of pressure to do so. That takes money.

    6 years ago

    When the survivors came here there were no social welfare programs. The social welfare system was created by LBJ. The programs have been responsible for the destruction of industry in America, the black family and many other social ills. Every where in the world where there is an entrenched social welfare state there are serious social problems. It has also bred and nurtured Islamic terrorism in Europe. If there would be no social welfare, the poor people in this country would not have sat by idly while their jobs were exported to China and Mexico. Without Social Welfare programs you would have no mass Kollel movement here or in Israel. It is possible you would not have a shidduch crisis either because young people would be forced to get serious about life and how to support themselves which would engender an entirely different mindset. Without the social safety net perhaps we as a society would not have tolerated the war on the family which has been perpetrated by the Left. Think about how once upon a time you only needed one wage earner to support a nice size family and one parent could work full time on running the household and taking care of small pre -K children.

    6 years ago

    I do not want to judge these people. But in general, the cost of a frum life is much more expensive than a goy, yet the earning potential of a Yungerman and his family is much less than that of a goy.
    Therefore, we are going to claim more state benefits than that of a goy. If the people that could effect change, did so, we wouldn’t be here now.

    AyinRoeh
    AyinRoeh
    6 years ago

    There are tzvei dinim here. Someone who is in Kollel and his wife has a job, they will qualify for programs in most cases. That’s not fraud. People can debate whether it’s a good idea or not, but it’s perfectly legal. Fraud is a separate issue and clearly illegal.

    The_Truth
    Noble Member
    The_Truth
    6 years ago

    Very sad that yet again, another frum community is in the limelight for monetary crimes. It is the stereotypical money-hungry image of a Jew. True or not. Legal or not. Loop hole or not. Fact is they were arrested for money & tax fraud.

    IMHO, it is the lavish luxury lifestyle that is not only praised, but looked up to and given the elite status BY THE YESHIVAS, KOLLELIM & PEOPLE of these communities. Yes, the Jewish lifestyle is expensive, especially when having many kids, but who are the yeshivas encouraging young men to marry? Those with money! Who are the dinners & fundraisers honoring? Those with money. Who are the people with power & pull? Those with money.

    Then you have the housing; where there isnt enough, but every second house built is bigger and has more luxuries than the first. There are no more basics that are acceptable any more. Everything must come with upgrades. More & better than before. Don’t get me wrong, all this is very nice – IF YOU CAN AFFORD IT, but no one can if they don’t have a job.

    1 of 2

    The_Truth
    Noble Member
    The_Truth
    6 years ago

    2 of 2

    BUT, you dont find anyone encouraging getting a job/career to pay for it. You dont find anyone encouraging living a more frugal lifestyle. The peer pressure to live up community / development / neighbors standards is enormous. (Much more than in other communities I find.) Where norms of Gashmios are not kept to, but exceeded at every simcha, event, kiddush, house, or party. (All in the name of “Ruchnious” of course )

    This was unfortunately inevitable and I’m sure will mushroom over time as this unfolds.

    It will only get worse unless people are ehrlich & live within their means.

    yonasonw
    Member
    yonasonw
    6 years ago

    Come on, stop the BS.

    This is a lifestyle for too many, Yidden who twiddle their thumbs and “poskin” it’s “not really” genieva to take from “the Goyim” for a “Torahdikke” cause. I have lived amongst such people and such sentiments for over 30 years…and most of these people are anti-liberal, anti- “schvartze” welfare cheat, conservative Republicans.

    And look at the posts here – too many are embarrassing and shameful…we have become a nation that excuses all sorts of misconduct as long as the doer is “one of us” – All is excused for Yidden. And many of you’re are messed up enough to think the Torah permits this sort of outrage.

    Feh.

    diemaynstazdiebiztklieg
    diemaynstazdiebiztklieg
    6 years ago

    Why do people love to use a sad shameful story as this one and someone’s downfall to trumpet their negative views and jealousy?
    Let’s say the accusations are well founded and these individuals are rachmono litzlan found guilty, does that make our system corrupt and defunct. Does this mean that our community does not have correct values and our way of life is no more a Kiddush hashem. When you have let’s say only ten yungerleit, their wives and children who could be earning degrees and billing their clients for their services millions of dollars a year for their services (doctors and lawyers etc..), and instead they are being moser nefesh to serve hashem mitoch hadechak mitoch simcha that is not the biggest Kiddush hashem? And we have Boruch hashem thousands of such families worldwide that is a tremendous Kiddush shem shomayim!

    6 years ago

    Wow, what a house! I live in a cramped small apartment and within my means!

    6 years ago

    I find it incredible, astounding, and pompous, that we have a group on this site, who have the gall to deny that anything illegal occurred; then, there are those who have stated that we should not condemn anyone until, all of the facts are in; then, there are groups, who seem to justify what they are allegedly charged with. Their argument goes “Nu, everyone does it, the cost of living is too high, they have large families, and they deserved help”. Last, there are those, as evidenced in similar past cases, that even when all of the allegations have been substantiated in a criminal trial, and defendants have been found guilty, they still refuse to accept the verdict. They will allege that the prosecutors, jury, and judge were anti-semitic. It is about time that those in the frum community, wake up and realize that there are gnavim in our community, who engage in such crimes, as well as in worse crimes.

    The_Truth
    Noble Member
    The_Truth
    6 years ago

    Authorities were able to determine that the families allegedly misrepresented their incomes partly by tracking illegal money transfers made at a Lakewood beeper store, according to the source. The owner of Beepers Plus on Clifton Avenue pleaded guilty on Feb. 23 to transmitting millions of dollars without a license, an indictable offense in New Jersey. By looking at some of those transfers, along with private school tuition records and withdrawals from a state fund that pays medical fees for sick children whose parents can’t afford their care, investigators uncovered the alleged fraud, the source said. The investigation into the alleged public-assistance fraud began around three years ago and now comprises a variety of federal and state law enforcement agencies. The FBI, the Social Security Administration, the New Jersey Treasury Department, the state comptroller’s Medicaid Fraud Division and the Ocean County Prosecutor’s Office all have been investigating.

    yonasonw
    Member
    yonasonw
    6 years ago

    59 Comments as of 6:28 – so much energy spent trying to explain or even to justify felonious, immoral behavior. This story, together with much of what is written here, is Exhibit A in a sad tale.

    diemaynstazdiebiztklieg
    diemaynstazdiebiztklieg
    6 years ago

    It’s amazing how this site attracts people that have constructive lives enlightened people who don’t have children irresponsibly. I guess that explains why you have so.much time to criticize God’s troops. A bunch of am haaratzim hasoneim, talmidei chachomim the way our sages say that ignorant am haaratzim hate talmidei chachomim like a snake, because they are jealous with their fruitless life of holy people who are devoting their life to serve their creator! It is a pity on these posters who are posting venum on this site. Shame on you if you want to know these comments are a true disgrace and chilul hashem! The only limud zechus is that you never tasted the true sweetness of serving hashem. By the way I myself am a base habayis not a yeshiva man ( I have a very good paying job in corporate America without a college degree (yes you heard right my W-2 last year was 200k plus!) but am a proud father of bnei yeshiva!

    triumphinwhitehouse
    triumphinwhitehouse
    6 years ago

    Lock them all. the. Best comment here want mine it was number 60 the truth.

    ALLAN
    ALLAN
    6 years ago

    First off, I do not know whether those arrested are innocent or guilty, that determination will be made by the legal system.
    Stories such as this are a Jew haters dream come true. Sadly, often when there is smoke, there is fire. I hope this not to be true since it will only fuels the ever burning fires of antisemitism that hurts us all.
    Too many times we fall back on the cries of antisemitism as a false defense to cover misdeeds. That tactic is getting tired and stale.
    If the allegations do prove true, shame on them and shame on those who blindly accept such behavior as acceptable.
    Only time will tell.