Clinton Pardons Four Felons

The truth be told, though, you and I and most Americans would never have heard of these criminals, were it not for former President Clinton. In the final days of his tenure as President, Clinton commuted their sentences, permitting them to leave prison early.

 The charges

 


 


To the embattled Hasidim of New Square, a village of 6,000 Orthodox Jews in Rockland County, N.Y., the recent federal indictments against members of their community for misuse of government education money represent a cruel double standard.
 

The leaders of this New Square community are unfortunately not as honest as their neighbors. Four of them had been “convicted of robbing the government of $11,000,000, by setting up a fictitious yeshiva to receive federal student aid money.” The school did not even exist. The convicts and their attorneys justified their actions “on the grounds that . . . the funds were channeled back into the community[, and not] for personal gain.” (Yoffie)

   


 


Issued by United States Attorney Mary Jo White, the indictments allege, among other things, the fraudulent misuse over a 10-year period of $10 million in federal Pell grants that were earmarked for financially needy post-secondary students. The defendants are accused of transmitting the funds through bogus schools of independent study in which no real study took place, in which students did not meet regularly with their mentors as required, and where very few degrees were awarded, even to students who had been registered in the programs for years.
 

   

Rabbi Eric Yoffie, President of our Union of American Hebrew Congregations, has written that, “for Jews, this is not simply another case of fraud and embezzlement. This is a case of religious people inventing an imaginary Torah institution to steal from the government, using the funds for other activities of their religious community, and then defending their actions on the ground that the money did not go into their own pockets. There is an implication that in some way, [their actions were] religiously acceptable. But of course [they were] not. Their actions are nothing short of a hillul Hashem, a desecration of God’s name. Jews who break the law in God’s name and turn Torah into an instrument of thievery are bringing Judaism into disrepute.”


The residents of New Square (named after the Ukrainian city of Skver, where their sect originated) insist that nothing improper was done. "Without going into the question of whether or not they were obeying the letter of the law, the spirit of the law was always being complied with," declares Rabbi Mayer Schiller, an unofficial spokesman for the group, who lives in nearby Monsey. The purpose of the law was to support education, says Schiller, and that's exactly what the money was used for, even if the studies were not conducted in the formal manner required by the Pell Grant Program.

Moreover, the Skveras are adamant in their claim that the funds were not used to enrich anyone – "Nobody here owns a yacht," one resident said to me sardonically – but only to support needy Talmud students in a community whose sole reason for existence is mastery of Talmudic law. "The entire community's only leisure-time activity is study," Schiller told me. "Even men who have regular jobs spend two or three hours studying Talmud every evening."
 

New Square NY is a Hassidic town. Just about every family in New Square (over 400 families) is getting a rent subsidy from the federal government.
 
   

 

 

 

 

The Town's Diamond Exchange

A remote town of 7,800 Jews with a diamond exchange.

   

Rabbi Eric Yoffie, President of our Union of American Hebrew Congregations, has written that, “for Jews, this is not simply another case of fraud and embezzlement. This is a case of religious people inventing an imaginary Torah institution to steal from the government, using the funds for other activities of their religious community, and then defending their actions on the ground that the money did not go into their own pockets. There is an implication that in some way, [their actions were] religiously acceptable. But of course [they were] not. Their actions are nothing short of a hillul Hashem, a desecration of God’s name. Jews who break the law in God’s name and turn Torah into an instrument of thievery are bringing Judaism into disrepute.”

Meanwhile, New Square was coping with a series of scandals in which top village officials were going to jail or fleeing the country for swindling tens of millions of dollars in federal education, housing and small-business subsidies in a decade-long scam.

One widely publicized case included laundering money through a phony yeshiva set up in Brooklyn.

Rabbi Twersky desperately wanted to win clemency for the four noted New Square residents who on Jan. 25, 1999 were convicted of 21 charges including conspiracy, embezzlement, and wire and mail fraud. Kalmen Stern, 42, was sentenced to 78 months; David Goldstein, 54, of Brooklyn, 70 months; Jacob Elbaum 40, 57 months; and Benjamin Berger, 30 months. They were ordered to pay back millions of dollars.
 

Chaim Berger Fled To Israel
 
(In addition, two others fled the country: New Square founders Chaim Berger, Benjamin's father, and Avraham David Friesel, son of Mayor Mattus Friesel. Chaim Berger, who fled to Israel, is awaiting extradition pending an Israeli Supreme Court hearing, while Abraham Friesel is still listed as a fugitive, authorities said.)
 


 
 

 

 

Were these commutations explicitly bought with votes? Probably not. Did these thieves receive special treatment because of their town’s overwhelming numbers of ballots for Senator Clinton? Perhaps. Did President Clinton think he was being a friend to the Jewish people when he commuted these sentences? Probably.

But according to a Justice Department spokeswoman, Clinton's commutation does not dismiss the court's order that they repay millions of dollars in restitution and undergo several years of supervised release. Stern still owes the government $11.2 million; Elbaum $11.1 million; Goldstein, $10.1 million; and Berger $522,977.
 

   

Full article

 

 

 

 

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