Rabbi, Several Others Arrested in Public Benefits Fraud Case

Authorities: New Jersey rabbi and his wife and 3 other couples charged in a conspiracy to defraud Medicaid and other public assistance programs of over $1 million.


Mordechai Sorotzkin, center, brother of Rabbi Zalmen Sorotzkin, walks outside Federal court after a hearing on charges related to alleged public assistance fraud Monday, June 26, 2017, in Trenton, N.J. Rabbi Zalmen Sorotzkin, a prominent rabbi and several others were arrested in simultaneous federal and state raids Monday morning on charges related to alleged public assistance fraud on a scale rarely seen before in New Jersey, according to law enforcement sources. (AP Photo/Mel Evans) The Associated Press

 

TRENTON, N.J. (AP) — 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.

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."

 

Article From:- https://www.usnews.com

Recent Articles:-

Alleged Mastermind of Jamaican Lottery Scam Pleads Guilty

Ex-bank official charged with stealing over $325K from elderly customers

Woman pleads guilty to using county funds to buy tuxedo for pug, Razorback tickets

Two jailed on fraud, theft charges

Caddo commissioner, sister indicted on federal fraud charges

Fort Smith Woman Accused Of Financial Identity Fraud

SCSO jailers arrested in check fraud scheme

Tax Fraud Blotter: A grand per dependant

Man Arrested For Using Debit Card Programmed with Stolen Account Information

Mortgage fraud is growing in condo-centric housing markets