Have You No Shame?: Frum Peddler of MHA Writes and Writes

For (Orthonomic) background on MHA scam, see Lakewood Local.

This letter to The Lakewood Scoop regarding MHA is written by a loud and proud person who claims to be the first to introduce the program to the frum community. Wow! I'm blown away. Brazen is the only word I can think to describe this drivel.

This post is a continuation of a discussion of Get Rich Quick Schemes: see the previous post and a post from 2008. Add to this discussion of putting the cart before the horse. Also add to this discussion the many posts on Areivim "life insurance" because it all fits together in a larger discussion.

Here is a man that claims he brought big money into the frum community when he introduced and pedaled a product in the frum community, a "product" that wasn't actually a product after the grocery business was dropped and one that will reveal, with a simple Google Search, that there were quite a few questions on the business model, or lack thereof.

He is the tzadik and you just aren't hearing him out. Yep, I've dealt with those who lack integrity and I have a profile in my mind of how some people talk and walk. This might just be a letter, but the swagger and attitude is ever present. I can hear the letter and it is like deja vu. I can physically feel the letter in my bones.

Because the topics of yashrut and integrity are part and parcel of our being, and because I've been asked in the past about how to spot those who you don't want to do business with, I'm going to take the liberty to reprint parts of the letter for those who simply have yet to deal with someone like this because there is an educational purpose, even if this particular writer is sensational to the max. The emotions, the accusations, the self-promotion, the attitude. It is all there and it is sociopathic. (Note to self: pull a relevant find from Mishlei for the blog).

I have no idea if I have any readers are ones left holding the bag from MHA, but if you are, before you take the advise of this businessman purporting to be doing nothing but chessed, do yourself a favor and get legal advice before disputing charges on your credit card, i.e. taking his advice. The man cannot see straight.

It is so sad to see the comments coming in on this letters, comments such as:

"I think the Salesman was not intending to scam anyone..since the program was for 230 to get a 300 dollar card..if it lasted 5 months you are already ahead. I don’t think anyone truly thought this thing will last forever. Even now one can buy giftcards at 10-15% below face value..(big companies like Staples and Target sell them to get cash in bulk)." [My note: Put your gemorrah kop on. You simply can't compare big box stores selling prepaid gift cards for a discount to a company selling cash for cash. Staples and Target sell a product, not cash. It is to their benefit to gain your loyalty, peek your interest, and get you into their store to buy product.]

The question is to invest in a “window of opportunity” investment..where it makes sense until it doesn’t..if that is considered a scam. [My note: do you hear yourself?]

And this: "I dont know why so many people are beating up on you. I know you and you helped us out in a way that you thought we could all gain. And you helped us when it went down.

Fortunately there are just as many posters who do get it.

The letter:

. . . . . It’s amazing how so many people are mamesh mikayem naaseh vinishma when they blog. Why don’t you first find out the facts?

I was the first one to bring this to the frum world and I am happy I did. Since I did not listen to all the “its a scam” people, I got thousands of dollars into yiddishe hands. People who are have ordered their secure sleeves and expected to get a gift check (not CARD) can get back their money by disputing it with thier credit card. [deleted]

MHA was not a scam. No one got scammed. The ones who can not dispute, are those who made the purchase with a gift card. They will have to wait for the court to first collect all the assets of MHA and only then send in your claim. You will get a portion of the pie. (Not worth your time)

The “if its too good to be true, then it’s not true” people, could have been 5 – 10 thousand dollars richer by now. But alas “its too good to be true” so while you are wise and not naive, you remained wise and not naive but all the rest of us got money.

The “someone on the bottom will be left holding the bag” group of people, never took the time to understand that with this program you make money even if you don’t sign anyone up. They WILL be holding the bag, IF they don’t dispute it.

[. . . . . ]but I think it’s different when there is a credit card involved, because THEY are the ones who protect you.

“But lemaaseh Some people DID lose out, like the people who purchased with a gift card”. Good point, so let me ask you should have we decided not to pump in $150,000 into Yiddishe hands because someone might buy it the wrong way? Lets see what the coffee room says.

And for Mr. K who threatened to report me to the FBI and who threatened to publicize all my emails (in which I help everyone to make sure they dispute the charges properly). You’re mamesh a tzadik.

Finally I’ll say this. Besides for Mr. K (who was not even in MHA) I did not get even one accusing phone call. Every single person was so nice. Every one told me we know it’s not your fault and thank you for helping us with the information we need to retrieve our money.

I’m sure everyone who wrote things that are not so nice only did so because they were upset FOR those who may have lost money.

At the end of the day we still have each other and we each care for each other and this is what HKBH wants. Even my friend, Mr K. also meant well.

Wishing all my fellow brothers bracha vehatzlacha uparnassa b’revach.

And finally, I have a new thing which you could make thousands a month. It’ll cost you only $5. Pay ONCE. That’s it. Be careful, you might be “holding the bag”. Im serious.

[In comments further down in the thread the letter writer continues dig a hole, one that is really ugly. Might not be long until the pidyon campaign at this rate. See the lengthy comment #36 where he "lays it all out on the table" about how he didn't understand the business model but the men in charge have so much experience, how the business was ruined by consumers who called Walmart and later Wells Fargo souring the relationships, how consumers with funny names ruined a good thing, and on and on. Oy, a true believer who outlines a ponzi scheme, but has no integrity or clarity. And now he has another $5 opportunity for you to "invest" in if you are matzliach. . . an (illegal) chain letter with an attached product to kasher it].

And here is another jem from Mr. Parnassa:

I dont own the $5 business company. Ill send the link to those who are interested. And btw no one I know is out thousands. I just cant believe how people can talk without getting any facts. There is not one person i know who is out (so much) money.

We should all be tearing kriah. As reader JoelC says, "The comments on the Lakewood Scoop on this are heartbreaking. The mixture of naivete and brazenness make me lose hope for our brethren."

Time to promote the Tortoise over the Hare. Slow and steady is the way to "get rich."

Bankrupt: MHA (Scam?)

A reader emailed me a number of months ago wondering if MHA (abbreviated name of co as I see this story taking shape), a company that had been advertising in a number of frum magazine such as the Yated ,was a scam? I had begun to research the company and its game when I was distracted by something else and did not return to my research. Since I had not seen the ads myself, I was sadly unaware of how many people from the frum community were participating in this business or buying "product" from them, product that was delivered months later (bad sign!). Strangely enough, some person pushing some sort of shake business got me thinking about the email, and then just yesterday news went out that the company was bankrupt.

Yesterday, the same reader emailed me to inform me that Yeshiva World News was carrying the story, which they received via The Lakewood Scoop. The company filed for Chapter 7. Given the current business model of selling money --gift cards or most recently checks according to some readers--the "failed business model" as some readers are kindly calling it, was bound to hit the proverbial wall. The companies original business sold groceries and toiletries from a website for which you needed a $29.99 membership to even be able to view the choices and claimed you could supposedly save 50% and have the non-perishables shipped to your door with free shipping.

It is a real shame that we see so many people put their time and energy into businesses for which there is little, if any, gold at the end of the rainbow. Oftentimes, involvement with such businesses results in strained relationships with friends and family, to say nothing of financial loss or lost opportunity--time lost that could have been used to pursue a steady income rather than chasing a dream. Worse yet is when people just don't get it. A post on the Lakewood Scoop needs a serious lesson in economics and diversification. He (or she) writes:

Who said it was a scam? It was a failed business. They had everyone asking for refunds at once! Of course they go under. When everyone goes to withdraw money from a bank at once they go bust too! Is every bank a ponzi scheme? Ask any business that accepts returns, I’m sure if every person that bought something in walmart in the last 90 days would ask for a refund, they wouldn’t have issues too!

Those with any business acumen will realize that you can't compare banks of the pre-depression era to Walmart, a company that delivers product on the spot to a diverse customer base, to a company that was selling money for less than its face value to a crowd of BELIEVERS. And, wow, are there some true believers posting over at the Lakewood Scoop.

Some readers are suggesting that frum publications better monitor their ads. Others are suggesting Rabbonim not let MLMs into the community. My opinion should come as no surprise, but I don't think it is of any use to put Rabbonim or frum publications in the business of giving a heksher on businesses or ads (although weeding out the ridiculous could be a service), and I believe that the power exercised over business in more right wing communities is already often beyond the pale. There is plenty of censoring. I believe in certain Israeli communities because of tzniut concerns, women cannot advertise perfectly legitimate service businesses.

The real issues are deeply ingrained in a culture that puts the cart before the horse, so to speak. The issues of desperation for parnassa, a lifestyle that is out of sync with the average income level, integrity, etc, are issues that will have to be addressed in order that such scans don't hit like a ton of bricks. Censoring advertisements or shutting out every MLM for being an MLM alone (let's not forget that some MLMs do sell product and aren't "Get Rich Quick" Scheme), isn't going to make a dent when people too many people are hard up for funds. Address that issue, and you might get somewhere.

However, next time I receive an email asking me if I could look into a possible scam, I definitely will. Representatives for this company had yet to advertise in any of the publications I receive in print. There is one company I have seen advertised for which I think people should beware, but I can't remember the details. If you are searching for a better electric rate, start with calling area utility companies, not using a company you know nothing about.

Finally, I'd like to point my readers to a letter to the Yated from Rabbi Eli Teitelbaum zt"l on MLMs and the frum community. Seems his words are every bit as important now as they were back then when the Yated gave free advertising to a lady promising to solve the frum world's money woes by selling some non-FDA approved product for which I deleted the name of the company in my post, and no longer recall what type product she was selling that would solve so many problems.

GET-RICH-QUICK” SCHEMES

Dear Editor,

Reader beware! In last week’s Readers Write column of the Yated, someone suggested a solution to the parnassa crisis by joining some MLM (Multi-Level Marketing) company making the latest rounds. Once again, I must warn all the readers that these MLMs have been tried since the time of Mesushelach and the only thing they will do for you is get you deeper into the quicksand and add to your pain and troubles.

I’m sure they’ll tell you that they are different than all the rest and provide you with names of people who are making millions. It’s time people realize that there is no treasure chest hidden at the end of the rainbow and the moon is not made out of cheese. There is no quick and easy way to riches unless you inherit it.

Many people were in Amway (also known as Scamway) for many years and never made the riches they were promised. The average monthly gross income for active distributors of Amway for January 1998 was $88. This was before expenses. Anyone who dangles a diamond-studded chain in front of your eyes is only trying to draw your attention. It’s like waving a red kerchief in front of a bull. We must never allow our greed and need for money to short-circuit our normal thinking process and common sense.

Unfortunately, many have lost both their time and life-savings by investing in these MLMs. For those who want to learn more about these so-called “get-rich-quick” schemes or MLMs, I suggest they read the book “Behind the Smoke and Mirrors,” by Ruth Carter, or “False Profits,” by Bob Fitzpatrick before investing their money.

While not all MLMs are the same, one should always consult his own accountant before investing his money and never rely on the advice of those who sell the product or franchise. It’s important that you find out what the average monthly gross income after expenses is for active distributors and what percentages of them have remained in the business for more than a year.

Don’t rely on the claims of a few who say they are making lots of money or tell you that you must work very hard at it in order to succeed. What they often fail to tell you is how much time you’ll actually have to put in, and how difficult it is to sell the product which is also being sold by many others, or how cheap you can buy a similar product in a local department store. More often than not, they will exaggerate the “miraculous” powers of their product, claiming that you can’t buy anything compatible anywhere else. One wonders why they don’t sell these miracle products in all stores.

Here’s a simple piece of advice to follow. If it sounds too good to be true, then stay away, don’t believe a word they say, and run the other way. Just because someone claims that it’s not an MLM doesn’t mean it’s not. If it looks like a duck and it quacks like a duck, then it’s a duck, no matter what anyone may call it! Not all that glitters is gold!

Sincerely, Rabbi Eli Teitelbaum

Guest Post: Accreditation, Track Records, and the Degree for Which You Don't Need to Step Foot

Thank you to my Guest Poster for helping me keep this blog active. I have a lot of thoughts I want to share that are not of the usual Orthonomic material, but then again the events are usual Orthodox events. More to come.

Guest Post by

A. Former Bochur

A couple of years ago, an entrepreneurial individual published The Bochur’s Guide to College (For Women Too) www.bochursguide.com. Ostensibly, it is a in informational resource which according to one review on Amazon offers “a very informative and helpful overview of the options available for those seeking to obtain a degree in a non-conventional way…. outlines different ways to obtain credit ranging from exams (CLEP, AP, and others) to online and distance learning. A fun read too!”.

The website features links to Amazon to purchase book as well as links to various online degrees from for-profit institutions which are apparently generating advertising revenue.

It is beyond the scope of this post to discuss the merits or demerits of the compatibility of a Torah observant lifestyle and the contemporary college campus. The fact is that secular college campus is in part reason of how we have gotten to this point.

The topic at hand is the value of having a college degree and how to obtain it. Most (although not all) frum Jews will stipulate the value of having a degree towards some sort of vocational endeavor. The question is how to get there.

In the past, the American Yeshiva world has been replete with success stories, either in business or professional life. While some have been able to excel in business without a degree, many Yeshiva graduates attended night school at commuter colleges that were the springboard towards a professional employment in a variety of professional fields. For the most part, all believed that obtaining a college education was a necessary component. This was achieved through an arrangement with the college to accept some number of Yeshiva credits, but ultimately the undergraduate degree was a diploma from the college of record. Some took this diploma to graduate school, and others were able to enter the workplace with the undergraduate degree and lead fine religious lives infused with Torah values and learning, and the ability to make an honest living.

Phase II of this Yeshiva world phenomenon occurred when it was discovered that for fields like Law, there was no specific major that was a prerequisite for entry. As a result, the “Yeshiva degree” was invented. Ostensibly, this was to turn years of Torah study into some sort of diploma which would be subsequently accepted by the law school. For Law, there has been a strong track record of success for this path. A variant within Phase II included other professional fields such as Accounting for which prerequisites and passing the CPA became more important than the undergraduate degree. As a result, the Yeshiva degree plus the coursework in Accounting could be leveraged to obtain the professional credential.

Enter Phase III, which is really a mish-mosh of Yeshiva (or Seminary) degrees, online degrees, “CLEPing“at both the undergraduate and graduate levels. Young people and their parents have be told that some of these degrees are “accredited” and therefore worth the investment. There are a variety of different drivers of this phenomenon, which are also too complex for this post.

A perusal of the website above will list the various programs from which one can obtain a degree, there is little accountability for what is being advised. And the types of degrees being promoted here are very much the same approach that some Yeshivas are publicizing as channels in which one can get a college degree with minimal time and coursework and maximum time learning in the Yeshiva.

Without getting into the ins-and-outs of what is “accreditation”, let’s just compare it to some sort of Kosher symbol. OK, someone claims that it is kosher, and perhaps it technically is under certain circumstances. But is it a reliable hashgacha that most would recognize? In the same way, OK the degree is accredited, but is it recognized by employers? Another question that people should be asking is what is the value of the diploma alone without any relevant job experience, and in many cases writing and social skills within the corporate workplace.

It should be pointed out that many of these modern day diploma mills are in reality for-profit entities which are often more expensive than the local college. So, in the end, is this a worthwhile investment? Sure, the claims are that one can complete the degree in half of the time as other recognized schools. But so what? Most established universities track employment rates of graduates (one can quibble with how accurate the numbers are, but there is some tracking going on?). But are the Yeshivas doing that for the programs which they are directing people to?

The most recent one is the following (but there are others which have been marketed over the years).

*MEMO: To All Yeshiva Rabbinic Degree holders (First Talmudic Law or First Rabbinic Degree etc...)*

The Jewish Community announces the fourth cohort in the most successful M.B.A. Degree program starts again on *June 14th, 2011*. *(Participants meet twice a week for only 6 weeks, the rest of the pro**gram is completed via correspondence and can be done from any location)*

*

*The Introduction Seminar is Tuesday, June 14th *

***Students must register at least two weeks before then*

This Masters in Business (M.B.A.) program has *an additional **$2,000reduction OFF

**the discounted tuition of $8,100*. *(Total M.B.A. tuition would be $6,100

....paying class by class as you go and financial aid is also available.).*

- There are only 12 physical sessions on Tuesday and Thursday evenings that take place in Brooklyn or Queens *(students meet twice a week for 6 weeks), *

- *The rest of the program is completed **entirely online*.

- M.B.A. Graduate Degree Specifics:

https://sites.google.com/site/teameducationinc/ellis-university-mba/course-specifics>

- Schedule and Calendar:

*LINK*

- *Read what current students are saying about the program:*

- Past student comments:

* LINK

*

- *6 different concentrations are available:*

- *M.B.A. - **General*, * *

- *M.B.A. - **Finance*, *

*

- *M.B.A. - **Information Management*,

- *M.B.A. - **Pharmaceutical Marketing and Management*, * *

- *M.B.A. - **Project Management*,

- *M.B.A. - **Entrepreneurship*

- *Financial Aid is also available*

** You can use your *Traditional *or *Yeshiva** Degree* for entry. Students have the option of earning your M.B.A. in 13-15 months if you desire.

Please call with any questions.

Sincerely,

Aaron Braunstein

*Program Director*

*(516) 528 - 8871

(347) 560 - TEAM*

*Teacher Education Assessment & Management*

Program Director

www.GoTeamEd.com

Office: (888) 418-GRAD

I would encourage all readers of the post to write or call the fellow asking him some of the following. Can he produce some statistics as to the value of this program at “Aspen University” or “Ellis University” for employment in the Tri-State area for example? How many graduates have obtained jobs in the past 3-5 years? Without any relevant work experience, what is the value of the diploma in the marketplace? What is the average salary of a newly minted MBA from these programs? How do corporate recruiters react to these schools on a resume and how do they stack up with local brick-and-mortar MBA degrees? How many graduates have obtained employment without any relevant job experience? Does this person stand to gain a commission for each referral to sign up? All good questions, each begging for a compelling answer.

We have a concept of “lifnei iver” which can loosely be translated as dispensing irresponsible advice to those who might be uninformed, naïve, or vulnerable. Those out there should probe as to how credible those making any referrals to these programs really are, whether made by the person above or the head of your local Yeshiva that endorses such a program. Can the value of these short-cuts be corroberated by hard (or even soft) evidence?

Name for Tehillim?

On Monday, I read about the horrific crime of arson and attempted murder of Chaim Aron Rottenberg of New Square. It is now Wednesday and I have yet to see a (full) name for Tehillim. First, anyone know the name? And secondly, I find it deeply, deeply troubling that after days later, Jewish news blogs that regularly call for tehillim, have not done so and aren't even reporting the story. Third, I think it is a mistake for Jewish Orthodox media (with the exception of VIN) to ignore this like they have ignored other stories. I really have no time to write today, so I will leave it at that.

Hope someone knows the name for a Mishaberach and Tehillim, not that ben Sarah won't due. This victim should be added to tehillim and mishaberach lists worldwide.

Time to Revisit Areivim

A reader sent me an email that went out from Daily Halacha and I once again feel the need to revisit Arevim and send out the message in hopes that someone will hear it and bring it to those that endorse the program to hear: buy real life insurance and actually take care of your family.

I wish I had the brains to take a photo of the original Areivim pages, a they change from time to time. The last time I visited the subject (Nov 2010) I recall visiting each webpage and that each site made a disclaimer of sorts that the program is not life insurance. The website (Areivim USA) the following email refers to specifically states "Areivim is a 100% non-profit, member-financed, insurance program." I hope I am not mistaken re: this particular website, but I believe that in the past, the different programs had a tad bit of honesty to say somewhere that this was a tzedakah program.

Not to get sidetracked, my message remains the same: don't buy snake oil. Buy old fashioned life insurance (Term 80 is a good standard, relatively inexpensive insurance program. Regular life insurance is NOT controlled by a Rabbinic Board. Regular life insurance is regulated and there are reserve funds. Regular life insurance distributes funds upon death, not upon the marriage of a chatan or kallah. Regular life insurance does not consider your other assets. When you receive a regular life insurance payment, you can use the money as you deem appropriate. Here, Areivim states:

1. A fund of $100,000 will be established by Areivim for each unmarried child and the spouse in the bereaved family.
2. The funds are placed into escrow accounts where they are saved until the child's wedding. Any accrued interest collected until then may be used to provide for the orphans' and/or spouses material and educational needs. All decisions in these matters will be made under the authority of the rabbinical committee.
3. Areivim has been established primarily as charitable (Tzedakah) endeavor. In the event that an orphan has shown the capability of supporting themselves financially and paying for their own marriage expenses, or in the event of a substantial inheritance, no funds will be collected. In certain cases, a partial fund will be established to complete the sum of $100,000 per child.
4. In the event of (G-d forbid) a large number of deaths among members (as a result of war, earthquake, etc.), Areivim reserves the right to consult with its Rabbinical committee in regards to proper procedures.
5. In all cases of dispute between members and Areivim's administrators, Areivim's rabbinical committee will serve as arbitrators and their decisions will be accepted as final.
6. Members relinquish all rights to sue or submit legal claims against the decisions of Areivim or its Rabbinical committee.

The following is the letter that went out. I've deleted the name of the beneficiary family. Rabbi Mansour, please reconsider your endorsement and encourage families to do the right thing and buy regular life insurance. You have an opportunity to encourage people to invest in something real. Please do. This is not a protection, nor is it a nest egg as stated in the audio file which I don't know how to put in this email yet. At best, this is a hachnasat kallah fund for orphans with no guarantees.

Subject: Request from Rabbi Mansour- Join Areivim!


Dear friends;

We appeal to you today, not for money for an organization, but for
financial stability for your own children. Areivim is a non-profit
community based benefit program that does not have a premium, but pays out
to orphans and widows when the wage earner of the home suffers an untimely
passing. This program is very successful in Israel, and all the Rabbis of
our Community including Rabbi Eli Mansour, support, encourage, and REQUEST
your participation. (Please listen to Rabbi Mansour's appeal in the
attached audio file.)

Here is how it works:
. Join your family at no cost, and no monthly or annual premium. Your
family is now covered in the Areivim group.
. Upon an untimely passing, each unmarried orphan and widow receives
$100,000.00, or a lower pro-rated amount if the threshold of 14,286
families are not joined in the group. 
. You pay $7.00 per unmarried orphan and widow when there is an
unfortunate untimely passing in the group. The $7.00 will be reduced once
the membership exceeds 14,286 families. (Currently, enrollment is at
10,800.)

The passing recently of Rabbi [deleted] zt"l was a terrible tragedy. 
We can't ignore the thought that comes to mind of his family's financial
stress had he not assured himself and his family for the unknown with
Areivim. B"H, he had fulfilled his duty towards his family and enrolled in
the program from which his family will now benefit immensely. 

Even if you already have Life Insurance, we encourage you to participate in
this program for the sake of your family, and to help support your
community's wellbeing.

Be responsible. Head the call. Join today. Call Arevim at 877-827-3484 or
visit www.areivimusa.org.

A is for Aiding, Abetting, and Accountability

This week of Jewish News features two events which I believe feature an underlying factor: lack of accountability, . The first event was an emergency campaign to raise $50,000 for the boys in Japan. The second was the sentencing of W. Runge.

In the latter case, the defendant was accused of deceiving the state in procuring tax credits for film, pleaded guilty, and then proceeded to set up a now defunct blog slandering the judge and prosecution, accusing them of impropriety, political conspiracy, and anti-semitism. Her story and words were featured on the Chazak Hotline and in Jewish publications, including the Jewish Star (see Shining a Light on Iowa for some rather grotesque charges again "Iowa"). While her story and accusations certainly didn't receive the press of other ongoing stories, the underlying themes were the same.

The judge handed her a doozy of a sentence, although she appeared contrite in court, based on her public statements from the time she plead guilty onwards. Here are his words, which were delivered hesitantly and with some pain.

This is a very difficult case for the court. Here is a defendant who has no prior criminal history, who has a family, and who isn't normally a candidate the court would consider as a candidate for incarceration. However, this defendant not just before her plea of guilty, but even after her plea of guilty, has not taken responsibility for her behavior. There is nothing muddying the waters about that. And your statement here today is not genuine and not sincere. What is sincere is the things you said out of the courtroom, out of your probable perception that it would make its way to the courtroom, because there is no reason not to be truthful there in that setting. And it that setting, you have attacked the judges who have presided in your case, you've attacked the prosecutors, you've blamed this on anti-semitism, you have blamed this on some sort of political conspiracy, and you have not taken responsibility for what you did.

And what you did was a felony. It was a criminal class C felony. It is considered a very serious crime by the Iowa Legislature. It was an attempt to defraud the people of the state of Iowa. And one of the most important considerations for the court in determining an appropriate sentence is to. . . it's not one of. . . it's the guiding principals for the court to choose a sentence that will both provide a maximum opportunity for your rehabilitation and also deter the commission of this offense by others. This cannot happen by placing someone on probation who does not accept responsibility for what she did, who publicly proclaimed that what she did was not wrong, and it certainly will not deter others from doing that.

This is a case, that in my judgement, calls out for the court to send a message to you and a message to others who would engage in this kind of behavior that it is not accepted, that it is criminal, and it won't be tolerated.

Whether at some point in time I might be willing to reconsider my judgement in this case is open to question. But for right now, at this moment in time, based on what you did and, again, your complete, what I would call arrogant, defiant, disclaiming responsibility, this in my judgement is an appropriate sentence. For the reasons that I just said, you are sentenced to an indeterminate term of incarceration not to exceed 10 years, you are accessed fine, the mandatory minimum fine of $1000 along with the applicable surcharge. I'm going to suspend your sentence because of your incarceration. . . etc.

In the case of the boys in Japan, the emergency campaign sought to raise $50,000 this week in order to pay a fine for Yaakov Yosef in order that he Japanese authorities consider transferring him to Israel. While other Jewish publications had previously published other accounts of the boys' story, the current account reads as such:

Japan. A strange and foreign land, geographically and ideologically. A country whose crime rate is exceptionally low due to its merciless treatment of criminals and even suspected criminals, whose penal system includes harsh labor camps and prisons. A place where two of Acheinu Bnei Yisroel are incarcerated for over two and half years through no fault of their own.

"Through no fault of their own." In each and every case I've highlighted in the past few years, the underlying theme of Jewish media is "though not fault of his/her/their own. It is a witch hunt, the product of anti-semitism, the result of a cruel penal system (never mind that Hashem commands societies to establish courts of law and seek justice).

I don't any particular issue with a kehilla stepping forward to help accused and/or convicted Jewish criminals, although these "pidyon shevuyim" causes are not my tzedakah of choice as I don't believe any of the cases presented obligate that I divert money from the little real tzedakah we are able to give after bills, tuition, and shul dues for pidyon shevuyin.

What I do have an issue with is lack of accountability and lack of introspection brought on by a Jewish media circus. In an attempt to create stories of inspiration and chizuk or in an attempt to promote being dan l'chaf zechut, lines of battles are being drawn in the sand between "them" and "us", and lost amongst the furvor are any opportunities for introspection and accountability. And in the case of Ms. Runge, giving her a platform to attack the prosecution and judges (an example here at Matzav), media--her own and Jewish media--has essentially aided and abetted in her sentencing, a sentencing that no doubt would have been much softer had she expressed only contrition and throwing herself at the mercy of the judge.

If the boys in Japan (ages 17, 19, and 22) were not at fault for accepting $1,000 each for agreeing to transport antiques in closed false bottom suitcases at the sum of $1,000 each (a sum that is being called "small" but for which is takes much effort and education for many a working person to net), then who is is at fault?

The Jewish media is busy talking about the lack of rachmanut present in the Japanese justice system and criticizing it full force (see Gil Student's article from 2009). While there are tehillim gatherings, speeches in shul, and emails being sent around listserves, I've yet to see someone in a position of "authority" talking about parenting, vocations, employment, poverty, or life outside of yeshiva.

The Japan case isn't the first case where frum boys acted as drug mules, nor will it be the last in there is no accountability. I can think of at least two other past cases, and in one the (non-frum) judge gave the parents of some 17 year old boys quite the mussar schmooze on parenting. If the boys share no fault, than certainly the parents and those who act in loco parentis share some responsibility? How do young, unmarried men (from impoverished families) make it out of Yeshiva without eyebrows raised, much less out of the country? I can barely make it out my front door without inquiries from the in-laws! When I was a teen, I could barely make it down the block unnoticed. I specifically remember one time where my *father* interrogated me about a T-Shirt I was wearing that he did not recognize.

Long overdue is some real accountability. [Cynicism warning: but all there seems to be are messages about tzniut].

PSA: Third Annual Torah Home Education Conference

[link] Join us in Baltimore, MD on May 29, 2011 for the Third Annual Torah Home Education Conference! We have another fantastic schedule planned to encourage, inspire, and educate you – whether you’re at the beginning of your search for information about homeschooling or a veteran homeschooler, you’ll find something here to interest you!

The conference will once again be held in the Park Heights JCC, in the conference rooms on the second floor - 5700 Park Heights Ave, Baltimore, MD 21215. Check-in begins at 8:15 am, and the conference ends at 5 pm. There is ample parking on site. Lunch can be purchased at the Eden Cafe, a dairy restaurant on the first floor of the JCC that is has kashrus supervision from the Star-K of Baltimore. (Please contact them directly with questions about their menu; a copy of the menu is available online.) Special hotel pricing is available to conference attendees. A variety of Jewishly oriented curriculum will be available to view, and Jewish learning games and activities will be available to purchase.

The cost for this unique program is $50 per person, $90 per couple. Registration and payment must be completed online.

Child care will be available at an additional cost; payment for child care must be made in full by May 20, and is paid for separately. There are currently a limited number of spots available for childcare at the conference. Infants, toddlers and young children will be with JCC staff members in a room adjacent to the conference room. Older children will have day camp activities at a private home nearby.

Teen girls can use the JCC facilities for the day; this will give them access to the pool, gym, raquetball courts, and workout rooms (pool and workout rooms have separate women’s hours).

Fees: Infants and toddlers – $60/child; children ages 2-4 – $50/child
Children ages 5-10 $40/child; teen girls $15 for a JCC guest pass

Please RSVP by May 13 to reserve your spot. For questions and to RSVP, email apmandel@yahoo.com or call Alisa at 410-963-2977.

To see this year’s fantastic conference schedule, please click here.

We look forward to greeting you at the conference!

[Schedule--See Link for Speaker Bios]

Third Annual Torah Home Education Conference Schedule

8:15 registration

9:10 – 9:25 – Introduction –

9:25 – 10:15 -

a) Mrs. Rebecca Masinter- “Laying a Foundation: Homeschooling the Young Family”

or

b) (to be announced)

10:25 – 11:15 -

a) Dr. Ben Perkus – “ADHD: Who Says? and What Now?” A Discussion about ADHD as a diagnosis, and how it may impact our families.

or

b) Mrs. Ahuvah Feldman - “Nuts and Bolts of Homeschooling: Getting Started”

11:25 – 12:15 –

a) Mr. Isaiah Cox - “Choosing to Homeschool: A second generation perspective”

or

b) Mrs. Avivah Werner -” The Monster in the Mind: Acknowledging and Dealing with Burnout”

12:20 – 1:50 Lunch (enjoy fellowship over lunch in the Eating Together Room, browse curriculums in Center for Jewish Education)

1:55 – 2:45 pm -

a) Mrs. Viva Hammer - “Homeschooling Your Teenager – Capturing the Opportunities and Handling the Technicalities”

or

b) Mrs. Bracha Goetz – “The Marvelous Midos Machine – Your Home”

2:55 -3:45 -

a) “Homeschooled Teen Girls Share” – panel discussion

or

b) Rabbi Yosef Resnick, MSEd – “Jewish Community and Homeschooling in the Internet Age: Creating Connections, Networks, and Friends”

3:55 – 4:45 – general session -

Dr. Hadassah Aaronson – “Children in a Homeschool Environment: Socially Deprived OR Selectively Engaged?”

4:45 – closing

Two Modern Orthodox Yeshivot will Not Open Next Year

Note: Blogger went down. I happened to save this post elsewhere because Blogger was doing strange things. So here it is, without a few edits. Let's see if the comments post. If not, I should be able to pull them from email and post them myself.

This week is a sad week in the world of Modern Orthodox Yeshivot. This week, Baltimore's Rambam Yeshiva announced it will permanently close as of the end of the school year, as did theMoshe Aaron Yeshiva of Southern New Jersey.

I don't have enough information to draw any conclusions, but I noted some similarities:

1. Age of the schools: Rambam Yeshiva opened up 20 years ago. Moshe Aaron Yeshiva High School 18 years ago.

2. DEBT: Both schools amassed debilitating debts.

3. Shrinking Enrollment (reference)

4. Big Ticket Spending: A $600,000 gym added to a school campus purchased for $350,000 in a fire sale at Moshe Aaron Yeshiva. Rambam made a decision to separate the boys and girls to save the school.

5. Deferring the inevitable: Related to the issue of debt, both schools made the decision to continue operations despite debt piling up as each school saw their mission to be unique. In the case of Moshe Aaron Yeshiva, it was the only Yeshiva high school in its county.

I don't want to overstep any bounds by pontificating about the finances at either school, as I am not familiar with the finances in either of these schools, or any school for that matter. However, in the Yeshivat Rambam articles, I noted that many comments were inquiring as to what the source of the debts and there were some comments that the teachers are not guaranteed payment after the next paycheck on May 15. In other school closings (see here) the recurring theme is back paid owed to staff and back pay owed to vendors/landlords. I find it refreshing that here there are no reports of such, although there is speculation that the teachers may not be paid after May 15. While emotions are high, there is pain and worry on the part of parents and students, and teachers wonder what will be in the future, there is honor is meeting obligations to staff and hopefully all debts can be met upon the sale of the property.

An important note regarding the economics of the New Jersey school appeared in the article that all need to pay close attention too:

Moreover, some parents were behind on paying the $18,000 annual tuition, a situation that was allowed, said Goldstein, "under the mantra that nobody should be denied a yeshiva education.

And, on a final note (as both communities share another commonality--new startup schools are in the works--in New Jersey Rambam Yeshiva and in Baltimore Ohr Chodesh), I think it is pointing out this great quote: "the definition of insanity is doing the same thing over again and expecting different results."

When it comes to small schools, the conventional school format (single grades, multiple tracks, accommodation for learning differences, the mantra that none be denied) has to be looked at. I think it would be great to see something different develop to fill the voids, as well as to simply pilot a new type of program. But from reading the articles on the new schools proposed, I don't see much that is out of the box on the educational, administrative, or funding end with one notable exception: the NJ (new) Rambam school making a statement that parents who are not paid up at the previous school will not be considered for enrollment. I will be watching the developments. [Flame away as I exit stage left].

Employment: Frankly, I Wouldn't Want to Sit Down for a Meeting

This week VIN ran a Press Release in which NY politician Dov Hikind insinuated that banks in the Boro Park area where engaging in discriminatory practices by not hiring enough Orthodox Jews and essentially demanding some sort of quota or affirmative action program:

(Press Release) Brooklyn, NY - Following a month-long survey of 22 local banks in Boro Park which revealed that the Orthodox Jewish community is not adequately represented in the existing workforce, Assemblyman Dov Hikind (D-Brooklyn) has organized a meeting with branch managers and human resources personnel to discuss community outreach strategies and potential vacancies. [. . . . ]

“Our findings revealed that more than a dozen banks serving the Borough Park community have not made a concerted effort to recruit, train or hire the best and the brightest that our community has to offer,” Hikind said. “Though we are aware of many qualified candidates, the character of the Boro Park community is simply not reflected in the workforce of local banks. An evaluation of the same financial institutions located in Crown Heights, Bedford Stuyvesant, and Chinatown found that the people who lived in those neighborhoods also worked in the local banks.”

Who knows why he chose to focus on the banking industry over other industries. Either way, few people I know like to be accused of discrimination. I'd say that is a pure chutzpah when there was no audit of employment applications to begin with. Nonetheless, representatives from banks agreed to a meeting with Hikind and the Emergency Parnassa Initiative (mentioned previously in the post "And if we have to pay them more they are worth every penny").

At the meeting bank representatives informed Hikind, in response to his month long survey of 22 banks in the Boro Park and Flatbush area, some vital information: few, if any, were applying!

Hikind "secured commitments [from the banks] to conduct better outreach efforts to alert the community about vacancies and training opportunities" namely, asking the banks to post vacancies in Jewish and Yiddish publications, as the community doesn't as a whole use the internet. The Emergency Parnassah Initiative Executive Director announced:

“My organization will work with your recruiters to ensure that we send you candidates who have already been interviewed and vetted by us, so you don’t have to sift through hundreds of résumés. You know the people we send you will be appropriate.”

Those who are interested in being considered for positions at local banks should e-mail a résumé and cover letter to jobs@epinetworking.org .

This all would be humorous if it wasn't actually true.

My recommendation to job seekers: if you want to work in a Boro Park bank, apply for the job through the bank's regular recruitment mechanisms. March yourself into several local banks that you are interested in working in and introduce yourself to the branch manager, inquiring of opportunities both within the local bank and other banks in the greater area. Inquire directly of the branch managers and human resources department what skills one needs for the jobs and what skills you should be picking up to advance in the industry.

PSA: West Orange Cooperative Yeshiva

Hat Tip: A reader

A new Yeshiva starting with Kindergarten is opening in West Orange New Jersey, the West Orange Cooperative Yeshiva. The website lists a seasoned Kindergarten teacher, a curriculum development consultant and math teacher, and a music and computers teacher.

Target tuition is $8000 (15 students max). Parents will volunteer.

I've posted about the Florida Jewish Cooperative School. It is nice to see a second cooperative school setting down roots.

Keeping a White Collar Clean (Full Text Article)

With thanks to Mishpacha Magazine and staff, I am able to bring my readers the entire article from Mishpacha.

Keeping a White Collar Clean

Investigations, prosecutions, and prison sentences for white-collar crimes in America have spiked significantly in recent years, leaving many members of the Orthodox community with the feeling that they are being singled out. Mishpacha questions financial experts to determine if this is fact or fantasy.

By Shimmy Blum

Last May, Assistant US Attorney General Lanny Breuer issued a not-so-veiled warning when he labeled our times “a new era of heightened white-collar crime enforcement — an era marked by increased resources, increased information sharing, increased cooperation and coordination, and tough penalties for corporations and individuals alike.”

Since the 1990s, when white-collar crimes took a backseat to violent crime, the former’s prominence in the eyes of law enforcement officials has risen dramatically.

Early in the last decade, after the passage of the Sarbanes-Oxley Act, federal sentencing guidelines were changed to increase jail terms for white-collar criminals. Statistics show that between 1995 and 2008, the average sentence for a federal white-collar crime rose from 18 to 28 months.

“Judges are no longer handing down six-month sentences for these crimes; they’re far harsher that they were even five years ago,” says Chaim H. Leshkowitz, senior partner in the Leshkowitz and Company accounting firm, as well as an attorney specializing in tax and other financial matters. “The criminal justice system is sick and tired of what it sees as white-collar criminals gaining an unfair advantage over law-abiding citizens.”

The frum community’s awareness of the serious consequences of white-collar crime has been significantly heightened in recent years, due in part to several high-profile investigations and even convictions of frum individuals. “I recently visited the prison in Otisville, New York [where there are a number of frum inmates] and the situation is very sad,” says Mr. Leshkowitz. “I saw several people incarcerated there for relatively minor fraud convictions.”

Despite the attention that the investigations and the resulting media coverage have brought to our communities , Mr. Leshkowitz states his unequivocal belief that the law-enforcement officials don’t profile or discriminate against particular communities, and do treat his clients of all ethnicities equally.

Prominent defense attorney and former prosecutor Jacob Laufer concurs, but notes that even the fact that frum Jews attract equal suspicion and treatment under the law represents a stark decline in their image in the eyes of the law-enforcement community. “Years back,” he relates, “if an agent felt the need to question a Yid with a beard and peyos, he’d almost apologetically ask, ‘Rabbi, can you please explain to us this transaction? We’re having some difficulty understanding it.’ This sense of deference no longer exists.”

Legal experts warn that although our community is treated fairly, its members should be especially vigilant in their financial transactions because there are several factors that can unwittingly draw greater scrutiny to frum individuals and institutions.

No More Secrets

Mr. Leshkowitz observes that some actions common within frum communities can raise red flags for the IRS and other agencies, despite the absence of criminal intent or actual illegality.

One major issue is overseas bank accounts in cases where the account holders failed to report their existence to the IRS and pay the necessary taxes.

The IRS has aggressively pursued information from foreign banks in recent years and has offered two amnesty programs for taxpayers who divulge the existence of such assets and pay the necessary back taxes and any penalties owed. Criminal charges could be potentially filed against those who do not, and the eventual fines could even exceed the value of the account. “Some Jews, particularly Holocaust survivors, sought to keep secret money overseas for reasons completely unrelated to taxes,” says Mr. Leshkowitz. “They saw that out-of-the-country money saved some Yidden during the Holocaust, and wanted to have some funds to rely on in case of another Holocaust, chas v’shalom.”

Another IRS enforcement tactic that can impact the frum community harder than others is the periodic targeting of certain types of entities for additional review. After being made aware of cases of abuse by nonprofit organizations, similar institutions may be targeted. With its high concentration of such entities, the frum community often bears a disproportionate brunt of this scrutiny.

Additionally, government officials often randomly scrutinize certain industries that are rife with fraud. These can include cash businesses and mortgage companies — two areas in which frum Jews work in large numbers. In light of the subprime mortgage crisis and the ensuing collapse of the financial system, Mr. Leshkowitz noted that mortgage brokers and homeowners are being closely examined for potential mortgage application fraud, even in cases where the homeowners are keeping up their monthly payments. High tax deductions for charity or other expenses will also be seen as “deviations” by IRS computers and agents, triggering enhanced scrutiny.

Parental support for couples is another phenomenon common in the frum community. An IRS agent would likely be suspicious when encountering a midsize family that owns a home and cars and reports little or no income. Similarly, legitimate, large — and interest-free — gemach (free-loan society) loans to individuals with paltry income, assets, and credit may seem dubious to those not fully familiar with the inner workings and culture of frum communities, where trust between its members often trumps the traditional documentation and collateral used to secure loans in society at large.

In contrast, HSBC Bank subsidiaries HFC and Beneficial loans, the decades-old stalwarts who lent to those with poor credit and collateral, have been the targets of many lawsuits alleging that they charged exorbitant interest.

Tattletale Gray

In addition to the risk of random scrutiny of businesses and individuals, scrutiny of particular individuals, businesses, or nonprofit entities typically result from specific information that government officials have received from other sources.

“Many people are unaware of what information gets passed on to the government, and some have gotten jail time as a result,” Mr. Leshkowitz says.

Under the terms of the Bank Secrecy Act of 1970, banks and other financial institutions are expected to report potentially illegal transactions to the authorities, including the filing of suspicious activity reports (SAR). In most cases, the law forbids the institution to inform the customer that a report has been filed.

Deposits, cash withdrawals, and cashing of checks of $10,000 or more are usually reported by banks, including when large sums appear to be “structured” in multiple smaller transactions to mask their true scope. Bank employees are also trained to report smaller transactions that they consider to be suspicious.

Money services such as check cashers are required to record and report all transactions over $10,000, as well as transactions of $2,000 and up, which they suspect are being done to evade taxes or facilitate another illegal activity. The cashing of business checks at these venues, in particular, is commonly reported to government agencies.

Likewise, individuals, banks, brokerage firms, and all other businesses are required to file W2s or 1099 forms with the IRS, informing them of monies dispensed to an individual that may cause the recipient a tax liability, including for random freelance work. Though the recipient typically receives a copy of the forms sent to the IRS before he files his tax return, he is held liable if he doesn’t report this income, even if the issuer had only sent a copy to the IRS and not to him. Mr. Leshkowitz relates that it is relatively common for those involved in real estate transactions, for instance, not to be aware that the IRS was informed of the proceeds of the sale. Sellers should always ensure that they have clarity from their lawyers as to when a property sale may trigger a taxable event.

Additionally, information regarding questionable activities can also be relayed to government officials by people under investigation who are seeking to plea-bargain, or by spiteful spouses or bitter business partners. These phenomena are more common within our communities than many of us would like to believe.

Government investigations also frequently ensue as a direct result of investigations into other, unrelated parties. For instance, if agents audit one business, they can review all the payments that the business made to individuals and other businesses and match the information with the recipients’ tax returns.

This “domino effect,” says Mr. Laufer, can have an overwhelming effect on frum communities. “Members of frum communities tend to be interconnected,” he explains. “When one person is being investigated for illegal activities, it puts everyone who had any financial interactions with him, or even once deposited a check in the same account, on the radar screen. In most cases, the other individuals now being investigated hail from the same community.”

A Pound of Prevention

Legal experts stress the importance of avoiding even the slightest breach of the law as the surest means of protecting oneself from investigations and potentially devastating consequences. There is no better protection than having nothing to hide if the authorities do, for whatever reason, ring you up. “When you’re the unlucky one who is caught and you’re standing before a sentencing judge, the ‘Everybody does it’ defense gets you nowhere,” says Mr. Leshkowitz. His best advice is that people questioned by the IRS or other law enforcement agencies should never represent themselves, even when dealing with seemingly innocuous issues. “It is critically important to have an articulate, competent professional represent you in any information exchange with the authorities. You need someone who knows all the potential pitfalls and can satisfactorily explain the situation.”

Mr. Laufer contends that this vigilance is part and parcel of who we are. “When you wear the ‘uniform’ of a frum Yid,” he says, “you’re seen as representing certain principles. If you simply follow the Torah’s commands, which prohibit lying, stealing, even geneivas daas deception, you stay out of trouble.”