(By Rabbi Yair Hoffman for 5tjt.com)
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Recently, a warning has been circulating online from a prominent Rav about someone who has allegedly taken tens of millions of dollars from investors – and has allegedly bilked hundreds of people from getting back their money.
“The problem is,” according to a prominent Rav in California, “that this individual has now opened up a shul in another community on the east coast, and, in his new role – is [perhaps] likely to get people to invest with him again.”
On the other hand, it may be argued that since the “investors” gave this permission or people acting on his behalf to open credit cards and credit lines in their names – it is partially their fault. The victims respond to this that they never gave permission for out and out fraud.
An unsuccessful attempt was made to take the issue to a Beis Din. One of the victims remarked, “The person responded that we went to arkaos which was not true – we went to arkaos against a credit card company – not that person. He convinced the Beis Din that this was one and the same.”
CASE #2: Another person is suspected of taking investment money from people on false pretenses based upon the direct allegations of several trustworthy people. Can the person be identified publicly as a public service warning to others? More importantly, what is the criterion in which one can do so?
CASE #3: An employer believes that his employee has “sticky fingers.” Can he fire him? Can he force him (where it is legal to do so) to take a polygraph examination? Also, what is the status of a polygraph exam in Halacha?
THE HALACHA
The following is this author’s understanding of the underlying halacha. One should, of course, always consult one’s own halachic authority upon any matter that pertains to actual halacha l’maaseh.
THE ERECH SHAI’S VIEW
A good place to start is the Shulchan Aruch and its commentaries. The Ramah (CM 421:6) rules that a person who has an employee and suspects that he will steal from him may terminate him prior to the termination of his employment contract.
The Erech Shai on location (written by Rabbi Shlomo Yehudah Tabak, the Av Beis Din of Sighet 1830-1907) asks how can this be? Based upon this ruling, any employer would be able to fire his employee if he found someone that would work cheaper simply by stating that he is concerned for a theft!
The Erech Shai answers that it can only be done if he brings proof that the employee is a thief or if there is raglayim ladavar – a strong indication to that effect. The Erech Shai is not the only one who understands the Ramah in this manner. Other Acharonim do so as well.
STRONG INDICATION
We find that the Rambam (Hilchos Genaivah 5:10) is a strong advocate of the idea of “raglayim Ladavar.”
WARNING OTHERS
According to the Sefer Chofetz Chaim (Hilchos Lashon HaRah 7:11), if one’s intentions are truly to save others from losing money – one may relate the facts of the situation without embellishment.
POLYGRAPH
Rav Elyashiv zt”l ruled that the polygraph test has the status of a “Rov” – a majority, in halacha. The ruling is cited by his son in law, Rav Yitzchok Zilberstein in Chashukei Chemed Bava Metziah 37a). A polygraph certainly has the status of raglayim ladavar.
There is also a fascinating Panim Meiros (Vol. II #155) which cites the aforementioned Ramah and further states that although based upon “raglayim ladavar” one can actually use physical violence – one may still not use this level of evidence to permit going to the authorities against this person – out of a concern that he will incur a capital punishment. Rav Elyashiv zt”l (Kovaitz Teshuvos Vol. I #198) used this Panim Meiros to permit a shul to go to the authorities regarding someone who steals Pushkas from a shul. This is also indicated from the words of Dayan Weiss zt”l in Minchas Yitzchok Vol. IX #9 s.p. 2 (as cited by Rav Asher Weiss [no relation to the Minchas Yitzchok] in Yeshurun #15.)
HOW IS A RAGLAIM LADAVAR DETERMINED?
A rather pertinent question is how exactly do we determine the parameters of raglayim laDavar? There is a responsum written by Rav Nissim Karelitz zt”l (1926-2019) to one of the Dayanim of the well-respected Baltimore Beis Din, Rabbi Mordechai Shochotowitz, dated 4 Kislev 2008 that states that one may only go to arkaos based upon a written ruling from an experienced bais din and only after the other side had opportunity to present its case. Rav Karelitz thus gives three requirements:
- The ruling must be written
- It must be written by an experienced bais din.
- The other side must have been given the opportunity o respond to the allegations.
Although these three requirements are quite prudent, it is unclear to this author whether other Poskim agree to these three criterion based upon the aforementioned Panim Meiros. At times, in regard to financial matters especially, “time is of the essence” is a factor and renowned Gedolei HaPoskim have issued something called an Ikul – a temporary injunction so to speak – which would allow one to go to court without having met these three criterion.
CON MEN ARE EXPERIENCED
Professional con artists are quite adept at “gaming the system.” They can deftly utilize the combination of the laws against going to arkaos and relating “lashon harah” to milk people of their hard-earned money.
Unfortunately, in the past, media outlets who had originally tried warning the public against these types of dangers – were “put in their place” by well-meaning individuals who had trusted and believed the Ponzi-schemers. Ultimately, these outlets were so embittered by the experience that they stopped their efforts in publicizing the warnings.
Sadly, immoral individuals have often applied the following 5 step method to ripping off substantial funds from members of our community for years.
- Give a large donation to an institution with a wealthy donor base. Do so magnanimously and genuinely try to help out that institution – showing that it is dear to your heart.
- Come up with a false, but effective sounding business plan or investment strategy, and casually talk about it to wealthy individuals.
- Name-drop big company names and or people that have signed on and show false paper work that “proves” the whole scam.
- Take investment money from others and, at the outset, pay a hefty return on profits. Do so from other moneys that you are receiving.
- Give a significant donation to the cause where a well-liked Rabbinic leader stands behind the institution and develop a relationship with him. You will need to use this relationship in order to attempt to influence him or others around him into helping defend you against those people who realize that you have stolen their money. Articles in the Jewish media can be squashed. This will also help you gain more people in which to obtain more money from.
The above, is not a cynical view of the state of affairs in the world. It is, unfortunately, a scenario that has been repeated numerous times. It is more prevalent than it should be, in this author’s view, because people are almost entirely unaware of a Torah obligation that is incumbent upon all of us.
PREVENTING PONZI SCHEMERS
Yes, there is a Torah obligation upon all of us to prevent the proliferation of Ponzi schemers and rip-offs within our community. It is called the obligation to be “chas al mammon yisroel” – a fulfillment of the Torah Mitzvah of “v’ahavata larayacha kamocha.”
The Gemorah in Moed Katan 27b tells us that when Jews were burying their dead in the finest clothing, Rabban Gamliel HaZakain arose and declared that enough was enough. The rising pressures, the “keeping up with the Joneses” in how to dress the deceased was causing enormous economic pressure on the living. “It must stop,” declared the rabbi, and the tachrichim, burial shrouds, we now use became the norm.
BOYCOTTING FISH
The great Tzemach Tzedek (of 17th century Poland), cited by the Mogain Avrohom in the beginning of hilchos Shabbos, once ruled (responsa #28) that when local fishermen collude and lift up the price of fish excessively, a prohibition can be levied upon the consumption of fish on Shabbos. It may take a week or two or even three, but eventually the collective buying power of ordinary people would force the price back down.
OBLIGATION UPON EVERYONE
We will see, however, that it is not just great Torah leaders who have saved and are concerned for the financial well-being of their fellow Jews. It seems that this is what is expected by the Torah of everyone.
The Gemorah (Menachos 76a) tells us that Hashem commanded Moshe to also feed the nation’s livestock from the water that He had caused to come out from the rock at Mei Merivah. Also, Rashi (Rosh Hashanah 27a) points out that the kohain first removes the vessels from the house before declaring a house impure. So we see examples of the Torah being concerned with the financial well-being of the Jewish nation.
FOR THE PUBLIC AND FOR PRIVATE INDIVIDUALS
The difference between the two cases is that the former is for the entire nation, while the latter demonstrates that the Torah is concerned even for the individual’s finances.
SOCIAL NORM AND TORAH OBLIGATION
The Chasam Sofer on Bava Basra (54b) states that, generally speaking, one can make the assumption that fellow Jews are concerned with the monetary well-being of their fellow man, and that this assumption has legal ramifications. So we see that it is the normal behavior expected of all Jews.
Rabbi Yaakov ben Asher, author of the Tur, discusses (in the Choshen Mishpat section of Shulchan Aruch, chapter 35) a person who does not care about Jewish money. He writes that such a person will, in the future, surely answer for it. The Minchas Chinuch writes that one who is concerned about the preservation of his fellow Jew’s money fulfills the Biblical commandment of v’ahavta l’rei’acha kamocha (see his commentary on that mitzvah).
The clear indication from these sources is that demonstrating concern for the financial well-being of others is not just a mitzvah, it is an expected social norm with reward for those who do it and punishment for those who do not.
May Hashem help us in ensuring that such activity be eliminated from within our community and our country.
The author can be reached at [email protected]
Volume Nine of Rabbi Hoffman’s “Not Your Usual Halacha” series is available on Amazon. Click here to order!
Reb Moshe Feinstein asked me to look into an individual that has applied to for the position of office manager at the Mesifta Tiferes Yerushulayim (Reb Moshe’s yeshiva). I came back to Reb Moshe and told him that “the individual has pasty fingers”. Reb Moshe responded, I will not take him for office manager.
I hope the author in inaccurately describing R’ Eliashiv’s position on polygraph, because my understanding is that the universal consensus among goyishe experts is that polygraph tests are useful only as an intimidation tool to be used against ignorant people being interrogated and that they are inadmissable in Arkaos as evidence “unless both sides agree”, so the cops get someone who doesn’t have a lawyer present they get him nervous, intimidate him, maybe threaten him, into ‘being cooperative’ and taking the ‘test’, and also confuse and intimidate him into signing a piece of paper ‘consent form’ without understanding that he just ‘agreed’ to allow the charade into evidence. On this, the author maybe can ask a crminal defense lawyer that he trusts.
Anyone who intentionally cheats someone out of their hard earned money, through fraud or through a scam is a thief. I don’t care what their occupation is, or what their standing is in the community. A thief who perpetrates such scams, should be reported to the local law enforcement authorities, and should be prosecuted. I’m sure that there will be those on this site, who will pull out the religious card, as they always do when these crimes, or even worse crimes are perpetrated by someone who is frum. However, that should make no difference, as a thief is a thief, period. They should not receive a pass, or a green light. In addition to criminal prosecution, they should be sued civilly. Beth Dins have no enforcement authority, and don’t always side with the victims. Incidentally, the victims should not be blamed in this case, as that is tantamount to blaming a victim of a violent crime.
Nice article so where are the names?
Rabbi Hoffman,
Will you publish the name of the individual who conned people on the West Coast to giving him money, who has now opened a shul on the East Coast?
In these sitautions, everyone always invokes lashon hara. But they forget there is another part of the same possuk, lo saamod al dam rei’echah. If not telling will cause harm to someone, not only may you tell, you MUST tell.
This particular situation started happened because, in my opinion, both sides were wrong. This indvidual used other peoples cards for investment and they were thrilled to have him swipe it so they got huge amounts of mileage on the credit card and then would get paid in cash. When the guys investment fell through he couldnt pay them leaving them with the swipe on their cards. Bottom line – was it legal to begin with? You were taking a chance by letting someone swipe your card for so much money. You wanted the mileage! Im not at all saying the guy was right – he must pay them back, but the people who agreed to be part of this took a chance for their own benefit and i am not sure they are completely innocent either.
Bad and illegal actions must have consequences. Archy mentioned people who loot, riot and destroy property. Yes, that is wrong, and those involved must be punished and prosecuted. However, the scam artist, whether religious or irreligious, who scams vulnerable people out of their life savings, whether through a ponzi scheme, an investment fraud, a get rich scheme, etc., in my opinion, is a piece of garbage, who must also face consequences. We should not give a pass to white collar criminals, period.
In response to Archy- I still don’t think that you understood my comments, or read them thoroughly. We are a country of laws; our Pledge of Allegiance clearly ends with the phrase “With Liberty and Justice for All”. Justice for all means serious jail time for looters and rioters who destroy property, and assault cops and civilians. It also means serious jail time for the white collar criminal who steals money in business, by fraud and deception (i.e. a scam), a taxpayer who tries to cheat on his/her taxes, and thinks that they can fleece Uncle Sam with impunity, the lowlife who calls vulnerable Senior Citizens on the telephone and steals their life savings away, etc. In Physics, we were taught that for ever action, there is a reaction. Hence, if individuals wish to engage in the prior despicable illegal behaviors (whether looting, setting fires, assaulting, or stealing by theft and deception), they must all face the consequences. Otherwise, there is no deterrent effect, in the future. Farstedt?
Now The Chafets Chaim in Klal Yud speaks about this scenario precisely, so Rabbi Hoffman does not have to scramble for sources.
The Chafets Chaim state that there 6 conditions that must be met to do what Rabbi Hoffman and this prominent Rav did by coming out and publishing a negative article about this other Rav.
1. They must personally know the story first hand with all details?
Do they, they work in the office, they know the ins and outs, all the partners, the business structure etc etc.?
2. They must carefully weigh if indeed it is stealing what he did.
Did they break into someones home and charge their card or were the cards given to them for mileage?
3.The must attempt to approach the individual and privately reprimand him, first, before going public.
Did they?
4.They must not amplify or exaggerate what was done to make it look worse.
I see alot of assumptions in this article about what his motive was in becoming a Ruv and I see hyperbole as well.
5. Has to be totally for a purpose which would result for them to return the funds or to discourage others from doing so, cannot be done out of vengeance or hate.
What will this article or the prominent Rav’s letter accompish?
6. The end result may not cause damage that would be worse than that what would a Bet Did would have ruled as remedy.
Now here is the big issue, would Bet Din would have forced him to close a shul? Bet Din would have ruled he should be driven out of community?
Now here is the rest of the story, he did not open a shul, his mother in law did, her husband just passed a way from Covid. She is an Almana, so be careful.
He was not stealing anyone’s cards, he was given they cards by people who wanted mileage and his business went sour. There was a whole credit card mileage empire built around this purpose by other entities, that would present him with the cards to charge, that he had no knowledge of every detail on every card, so it is possible that card could have been charged more than original card holder allowed etc. (I don’t know, but Btsedek Tishpot)
Continued…
There is a famous story of Rav Shach, when Burich Goldstein HY”D went into the Meoras Hamachpela and killed many Muslims which resulted in a intifada. The Gedolim felt that they must come out and admonish the very provocative actions of Baruch Goldstein and call him out as rotsaiach and rodef. Rav Shach refused to sign the letter, stating that there is an Almana here that did nothing wrong and she will be hurt greatly by this letter.
My friends, there is an entire family over here, not enough they have lost everything as a result of business going sour and having threats lobbied day in and day out against there father, there is a grieving Almana that opened a shul in memory of her Husband, appointing the son in law she resides with as Rav. Where is the heart of a prominent Rabbi. Has he never fallen on hard times? Whats the purpose of such a hate filled letter? You wanna drive the family to where? To the sea?
I was just made aware that the prominent Rabbi writing the letter may be the victim or related to a victim in this failed investment. His last name and location appears on the court documents. Hmmmm, is he using his authority as a Rav to harass people he has invested with to exact revenge? How is that not an abuse of his authority? Rabbi Hoffman can you follow up with him?
His willingness to talk to anyone does not explain the actions he took.
This article says that the victim, which may be this prominent Rabbi himself, claims he never went to court to sue the defendant, but the court documents very clearly claim the this Rav he is attacking as the defendant.
Q.Is this Rav using his authority as a Rav to attack someone he invested money with and the business venture failed?
Q.On what basis can he say what he is saying, was he there?
Q. How many times does the Chafets Chaim point out that Loshon Hora or Motsie Shem Ra is even on truth when all conditions are not met?
Q. On what basis can we believe what this Rav is saying if he wasn’t there? The victim is never allowed to publicize things on his own.
Q. Was there a Bet Din that sat down and heard witness from at least two?
Q. How is the remedy of closing down a Shul just and fair to anyone? How does it solve anything?
Q. How does this Rav explain his actions to the family, wife and children? They suppose to live on the strreet?
Sounds like this is a hot head.