Hasidic School to Pay $8 million after admitting to Federal Fraud
The largest Hasidic Jewish School in New York State, the Central United Talmudical Academy admitted to defrauding millions from government.
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According to federal court documents filed on Monday, Hasidic Jewish School in New York State stole millions of dollars from government fraud.
The Central United Talmudical Academy (C.U.T.A) in Williamsburg, Brooklyn, admitted to illegally diverting money for school lunches, technology and child care. However, the fraud did not stop there as the school would pay some employees in cash and coupons to help staff qualify for welfare benefits— going as far as to set up no-show jobs for these employees.
As a result, the school agreed to pay $5 million in fines and $3 million in restitution, which it already has done.
“Today’s admission makes clear there was a pervasive culture of fraud and greed in place at C.U.T.A,” said Michael J. Driscoll, the assistant director in charge of the F.B.I. 's New York office as reported by The New York Times. “We expect schools to be places where students are taught how to do things properly. The leaders of C.U.T.A. went out of their way to do the opposite, creating multiple systems of fraud in order to cheat the government.”
The saddening part is that the school used the money to feed children for adult entertainment.
C.U.T.A came under investigation as a result of two former school leaders, Elozer Porges and Joel Lowy, who pleaded guilty in 2018—conspiracy to defraud the government.
The New York Times reports that more than 100 Hasidic boys’ schools have received more than $1 billion in taxpayer money in the past four years.
As part of the plea deal, the school will be subjected to an independent monitor for the next three years.