The head of a Brooklyn-based Chassidic sect was sentenced to two years in federal prison for a decade-long fraud and money-laundering scheme.
Rabbi Naftali Tzvi Weisz, grand rebbe of the Spinka sect, was sentenced Dec. 21 in U.S. District Court in Los Angeles. Weisz, 61, had pleaded guilty to one count of conspiracy last August and was facing up to five years in prison.
The rabbi and six associates in Los Angeles, Brooklyn and Israel admitted to participating in a fraudulent kickback scheme in which donors to Spinka charities were refunded up to 95 percent of their donations while claiming the full amounts as deductions on their income tax. Spinka is an ultra-Orthodox sect that originated in 19th century Romania.
In 2006, Spinka charities received nearly $8.5 million in donations and made $744,596 in “profits” after deducting amounts paid back to contributors. Moshe Zigelman, the rebbe’s assistant, pleaded guilty last year and also received a two-year prison term.
“I am embarrassed beyond words,” Weisz told the judge. “My remorse is deep and heartfelt.” — jta