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WALL STREET, JEWISH / ISRAELI ETHICS, AND THE WORLD OF FUND RAISING
* Jewish dictate holds that the Jewish collective community is morally
superior to all others and that, throughout history, they are victims of innocence.
The next two chapters represent merely the beginning of an inquiry into this
enforced myth, a myth represented everywhere in American popular culture as
fact.
Among the economic fields in which Jews today
are especially visible is investment banking -- "Wall Street," including
interconnected networks of lawyers and other legal and economic manipulators
stretching deeply into Hollywood and the mass media. Since the 1800s the "Old
Crowd" of German-Jewish banking families (the Seligmans, Lehmans, Goldmans,
Sachs, Warburgs, Schiffs, Loebs, et al) had predominated the field; a "New
Crowd" of Jews has in recent decades taken their place. After World War
II, melodramatically note Judith Ehrlich and Barry Rehfeld, "economic
power in America and Wall Street was shifting ... Fresh faces came forward
as if answering a call ... They were the children and grandchildren of Italian,
Irish, Poles, and other Europeans who were not of Anglo-Saxon ancestry. But
most of all they were Jews." [EHRLICH, p. 12] This is not to suggest
of course that the seminal Jewish American investment firms are today inconsequential.
Far from it. In 1999, for instance, Goldman, Sachs and Co. stretched across
the world to become the "single largest and controlling shareholder of
South Korea's largest bank, Kookmin. [BLOOMBERG NEWS, p. 11]
"In the world of high finance,"
observed Gerald Krefetz, "Jewish interest is concerned with investment
banking, a broad catchall for activities ranging from tendering advice to
underwriting securities. The heart of investment banking is public offerings
and private placements, the risking of capital -- sometimes ones' own, but
more often other peoples' -- to finance new companies, or expand old ones."
[KREFETZ, p. 54] The nature of Wall Street entrepreneurship might well be
presumed in the title of a 1986 volume by Ken Auletta: Greed and Glory
on Wall Street: the Fall of the House of Lehman, or Martin Meyer's Nightmare
on Wall Street: Salomon Brothers and the Corruption of the Marketplace (1993).
Both Lehman and Solomon are Jewish-founded firms.
A French Jewish commentator, Bernard Lazare,
noted Jewish propensities in high finance in the late 1800s:
"The man of the lower middle class,
the small tradesman at whom
speculation has probably ruined has much
clearer ideas of why he
is an anti-Semite. He knows that reckless
speculation [by financiers],
with its attendant panics, has been his
bane, and for him, the most
formidable jugglers of capital, the most
dangerous speculators, are the
Jews; which, indeed, is very true."
[LAZARE, B., p. 173]
Finance, investment banking, brokerage,
and commodities are the speediest ways (short of outright crime) to get rich
in America; by 1988 the stock and bond market and linked economic activities
totaled 12 trillion dollars a year (six times the value of the assets of Fortune's
top 500 companies). "Where the money went," note Ehrlich and Rehfeld,
"and what happened to it were greatly influenced by Wall Street power
brokers." [EHRLICH, p. 19] Corporate
mergers, acquisitions, and takeovers have become an especially lucrative field.
"By the 1980s, says Ehrlich and Rehfeld, "along with [Gentile] T.
Boone Pickens, and a few others ... the [Jewish] New Crowd was at the very
core of the mergers and acquisitions field." [EHRLICH, p. 15].... [This
circle of money men] bought luxurious homes, expensive art, high-priced foreign
cars, designer clothes and jewelry; they hosted or appeared at the right parties."
[EHRLICH, p. 16] ... The old WASP establishment had seen its wealth eroded
by changing tax laws and inflation ... arriviste Jews began to appear on the
boards of such time-honored WASP institutions as the Museum of Art, the Metropolitan
Opera, and the New York Public Library." [EHRLICH, p. 5] ... The New
Crowd broke the stranglehold of the Establishment WASP bankers and [older
Jewish] Our Crowd competitors ... and extended profit centers to newer financial
activities such as block trading, risk arbitrage, a wide range of retail securities
products, financial futures, listed trading of options, and junk bond financing
that helped companies expand and made almost every company vulnerable to a
takeover, a leveraged buyout that restructured corporate entities and raised
critical debt levels." [EHRLICH, p. 394]
In the 1970s, "hostile turnovers," notes James Stewart,
"bore an unsavory taint. They generated bad feelings, especially toward
those who represented the attackers. This sometimes alienated other clients.
Much of the WASP investment banks and loan firms preferred to leave such work
to the other firms, many of them Jewish." [STEWART, p. 25] "Various
techniques and instruments were used in the Wall Street boom of the 1980s,"
says Norman Cantor, "but the most consequential -- and lucrative was
the floating 'junk' (low grade) bond to provide capital for involuntary takeovers
of one company by another ... Fiscal critic Benjamin Stein [sees] the junk
bond device as a huge fraudulent Ponzi scheme generating temporary money pools
that could be looted by ruthless investment bankers and corporate executives
and their overcompensated lawyers." [CANTOR, p. 402]
William Leach traces the influence that
those in investment banking have had in shaping America, both economically
and in influencing the nation's values:
"The growth of investment banking
and mass consumption industries
were (and still are) closely related developments
... Bankers assisted in
undermining the competitive ethos by directing
business interest toward
concentration and easy economic fixers.
They helped local monopolies
become major national 'players' almost
instantaneously. Banker-inspired
megalomania reinforces an already clear
pattern in the economy away from
'making goods' to 'making money.'"
[LEACH, p. 275]
There is a long list of Jewish entrepreneurs
on Wall Street who, as a group, have been influential in literally changing
the American economic system. Sanford I. Weill, for instance, "amassed
a brokerage empire and eventually became President of American Express;"
he was later "recognized as one of the most powerful Jewish businessmen
in the nation." [EHRLICH, p. 13] John Gutfreund rose to become the chairman of Solomon,
Inc., "one of the most powerful securities firms in the western world."
Felix Rohatyn "perhaps more than any other, was linked with the flood
of massive corporate combinations that reshaped American business for much
of the past three decades." [EHRLICH, p. 14] Sanford C. Bernstein & Co., valued at around
$3.5 billion and with assets of $90 billion, is "one of the biggest closely
held U.S. money managers." It manages $55 billion "for institutions,
such as pension funds, endowments and foundations, and $35 billion for wealthy
individuals." [BLOOMBERG NEWS, INTL HERALD, p. 10]
Other influential Jewish Wall Street 'players'
(financiers, lenders, borrowers, advisers, lawyers, et al) in recent years
have included Alan Greenberg, Ira Harris, Bruce Wasserstein, Jerome Kohlberg,
Henry Kravis, Peter Cohen, Joseph Flom, Martin Lipton, Victor Posner ("a
onetime Baltimore slumlord" [FORBES, p. 45] who was indicted in 1982
for $1.25 million in income tax evasion and filing false tax returns [BRENNER,
p. 72]), [Posner is "the flamboyantly wealthy Miami Beach financier [who
has] been discredited as one of the most unprincipled and destructive modern
corporate raiders." [BIANCO, A., 1991, p. 31], Nelson Peltz, the Belzbergs,
and many others. Alan Greenberg is the head of Bear Stearns, Stephen
Schwarzman founded the Blackstone Group, a prominent investing firm.
Well-known traditional Jewish investment banking houses include Lehman
Brothers, Lazard Freres, Goldman Sachs, Salomon Brothers,
Bache & Co., and Cantor/Fitzgerald. [SILBIGER, S., 2000,
p. 78-79] "Jews took the lead in the '60s," notes Jewish business
author Steven Silbiger, "with new investment banking techniques that
helped introduce a conglomeration craze by using multipurpose holding companies
... The concentration of Jewish-owned securities firms created well-paying
employment opportunities at all levels of the securities industry: securities
analysts; portfolio managers; and stock, bond and futures traders; brokers
and deal-makers. Among the equity holders of the Jewish investment banking
and trading firms on Wall Street are hundreds of Jewish millionaires. Upward
mobility based on merit and high salaries has made working on Wall Street
a Jewish-friendly career choice ... Although exact figures for the numbers
of Jews are not available, they no doubt have a leading and disproportionate
role on Wall Street." [SILBIGER, S., 2000, p. 78-80]
In a book entitled, "The Money Machine,"
about the KKR company (Kohlberg, Kravis, and Roberts), the author address three
more Jewish Wall Street members:
"Here were three men who started
a firm in 1976 with a few million
dollars and ten years later had control
over what is believed to be the
largest corporate empire in the world
... Why did their names arouse
such intense emotions, ranging from envy,
to awe, to fear?"
[BARTLETT, p. x]
By 1999, KKR controlled 23 companies. Among others, its stable included the
Amphenol Corporation,
Boyd's Collection Inc.,
Idex Corporation,
Kindercare Learning Centers, Primedia
Inc, and Gillette. It also
made $5.9 billion profit in 12 years of ownership of America's second largest
food retailing chain. By the 1980s, the company had "$45 billion in buying
power," a sum "greater than the gross national products of Pakistan
or Greece." [BURROUGH/HELYAR, p. 130]
A Jewish investment financier, Jeff
Beck, has been afforded an entire volume about his life, entitled Rainmaker.
"By the end of the 1980s," notes its author, "[Beck] was living
a life of deceit so absolute that in effect his true personality had become
turned inside out ...[BIANCO, A., 1991, p. 18] ... As money and money-making
were glorified in the Reagan years, Beck's pursuit of wealth and the social
status derived from it flowered into a full-fledged mania." [BIANO, A.,
1991, p. 12]
Another Jewish financier, Carl Icahn "rose
from obscurity to become one of the most feared corporate raiders in the country,
Chairman of TWA, the largest shareholder
in Texaco and USX (formerly US Steel) and a billionaire ...
[EHRLICH, p. 15] ... [Icahn was] perhaps the most successful financial
predator of them all." [EHRLICH, p. 290]
Icahn is particularly notable for his repeatedly ruthless campaigns
to take over unwilling companies, loot them for obscene profits, and -- successfully
taking them over or not -- spitting them out again, leaving a wake of relative
ruin. In 1982, for instance, Icahn warred with the whole community of Danville,
Virginia, in his hostile bid to takeover a corporation called Dan River. Townspeople
unified to resist him, investing retirement money and other savings into company
stock. The company finally resisted the financial predator with a leveraged
buyout; Icahn, however, managed to strip the town's economic lifeblood of
$8.5 million." In another much publicized financial effort, during early
attempts [eventually successful] to take over
TWA
Airlines the company president, then C. E. Meyer, Jr., called Icahn "one
of the greediest men on earth." [BROCK, p. 171] By 1998 he was attempting
to take over Pan Am airlines.
In
an attempt to ward off Icahn's efforts to take over the Phillip's petroleum
company, it had to go $4.5 billion deeper in debt, as well as cut hundreds
of millions of dollars of capital expenses, sell off $2 billion in assets,
limit investor dividends, and tighten budgets. 5,000 fewer employees were
working for Phillips by the time Icahn was through. [BRUCK, p. 191] Icahn
walked away from Phillips unsuccessful after a 10-week struggle to seize the
company, but $52.5 million richer. "The
business establishment took notice [of Icahn's recurrently nasty dealings],"
notes Connie Bruck, "One close associate of Icahn recalled that Laurence
Tisch [the Jewish] chairman of Loews
and now of CBS, Inc., said to him,
'Tell Carl to cut this out. It's not good for the Jews.'" [BRUCK, p.
160]
And what of this sensitivity to issues
of Jewish concern on Wall Street, Jewish solidarity, and Jewish economic influence,
particularly (but not only) with regard to Israel? In 1974 Stephen Isaacs
noted a premiere example:
"Gustave Levy [is the] managing partner
of the important Goldman,
Sachs,
and Company investment banking firm ... Many have regarded
Levy as the most powerful single individual
on Wall Street, able to make
or break men and companies almost casually.
He personally controls the
movement of billions of dollars. 'Gus
is very conscious of being Jewish.
He's very conscious of the problems it
can cause,' said Philip Greer, a
one-time stockbroker who had reported
on Wall Street ... 'When you
talk about Jewish muscle, Gus will back
off -- 'I don't make waves, [he
says], 'I've got it, and I can use it,
and I know how to use it, and I do
use it, but I'm not going to talk to you
about it because then that redneck
in Alabama is going to get very upset
and I don't want him to know
about it.’.... In the Six Day War Gus
was sending money over [to Israel]
like crazy. He would have financed the
whole war all by himself. And he
made no bones about whether you were Jewish
or not. 'You need
Goldman, Sachs. I need you now. If I don't
get you now, you aren't
getting me later.' It was as simple as
that. He could've raised it from
Schwartz or O'Reilly, it didn't make any
difference to him, because
they're both after the money that Gus controls."
[ISAACS, p. 263]
In
1995, Wall Street financier Michael Steinhardt (wizard of the moneymaking
device, the "hedge fund") closed his company,
Steinhardt Partners, to concentrate more deeply upon spreading the
message of Jewish and Israeli identity so dear to him. With a personal fortune
of $400 million, he joined as a member of a consortium that bought Israel's
Bank Hapoalim and the
Maritime Bank. One of his brainchildren,
called "Birthright," was by 1998 still in its developmental stages;
it is a plan to bring all young American Jews for trips to Israel, to renew
their roots to Jewish and Zionist identities. "As part of the birthright
of every Jew on this planet, we want to offer free trips to Israel in their
formative years," says Steinhardt. [RABINOVICH, p. 20] A building in Manhattan for renewal of Jewish
identity was purchased, and there has been sponsorship of the Jewish Campus
Service Corps to pull young Jews to Jewish programs at national campus Hillel
centers.
By late 1999, "Birthright" was
in progress, at a cost of $210 million. "Funded by the Israeli government,
in partnership with Jewish philanthropists and communities abroad," college-age
Jews in America competed in a lottery for free-trips to Israel with the expressed
purpose of being socialized into deeper identification with the Jewish state.
The goal is to transport 50,000 Jews a year to connect to the tenets of Zionism.
Not all Jews are happy with the program. The chairman of the World Jewish
Congress, for example, Isi Leibler, thought there were many more worthy applications
of the funds. Many Jews getting in on the program too, he noted, were already
"from affluent homes." [GREENBERG, J., 2000, p. A1]
"It can be said," suggested Gerald
Krefetz in 1982, "that Jewish wealth is generated from the financial
side rather than the operational side. Many wealthy Jews have climbed the
corporate ladder through law, accounting, and investment banking. Apparently,
they are more at home massaging numbers than dealing with technical or substantive
problems of production ... [KREFETZ,
p. 69].... If Jews are drawn to the financial side, it is probably due to
the fact that in the last decade or two the financial tail wags the industrial
dog." [KRAFETZ, p. 69]
"Greed knows no bounds," said the
New York Director of the Securities and Exchange Commission in 1986, "there's
always someone who makes more than you do. Investment banking is the new gold
mine." [HOWE, p. 413] In the same year New York psychiatrist Samuel Klagsbann,
who had "a lot of lawyers handling mergers and acquisitions" as
patients, noted that for these people "business is God." [HOWE,
p. 413]
"In the field of takeovers and mergers
the sky is the limit," said prominent Jewish financier Felix Rohatyn
(later President Bill Clinton's ambassador to France), "Not only in size,
but the type of large corporation transactions. We have gone beyond the norms
of rational behavior. The tactics used in corporate takeovers, both on offense
and defense, create massive transactions that greatly benefit lawyers, investment
bankers, and arbitrageurs, but often result in weaker companies and do not
treat share holders equally and fairly ... In the long run we in the investment
banking business cannot benefit from something that is harmful to our economic
system." [EHRLICH, p. ]
In 1986, Dennis Levine was the first to
be caught, a "dealmaker" at Drexel Burnham Lambart, for his "insider
trading [exploiting confidential company information] which opened the doors
to the greatest scandal in Wall Street history, a scandal that "caused
grave concern within the Jewish community." [EHRLICH, p. 17]
Not long after, Martin Siegel was also arrested. As the scandal opened
up, it was discovered that these wealthy criminals were overwhelmingly Jewish,
including all its central players. "What was particularly upsetting from
a Jewish perspective," notes Ehrlich and Rehfeld, "was the fact
that the [criminal] network began, in part, when one member first introduced
another to a third at a United Jewish Appeal function." [EHRLICH, p.
340]
Connie Bruck, a Jewish journalist, notes
that
"Privately, [lawyer Martin] Lipton
expressed another concern, one shared
by many of the businessmen and lawyers
who were part of the Jewish
establishment in New York, and by some
of the Drexel contingent as
well. They feared that the common strain
among these nouveau
entrepreneurs and their nouveau banks at
Drexel -- an overwhelming
majority were Jews -- would unleash a backlash
of virulent anti-Semitism
... As one Drexel client ... put it: 'It
used to be that the Jews would go [to
WASP lenders] and they'd beg for money,
and they'd be rejected while
the Gentile would come in and they'd all
go to lunch and smoke cigars.
Now it's a shift of power to the Jews.
Drexel is making these huge sums
of money and the banks comparatively little.
The problem is, all
the entrepreneurs are Jews with the exception of [T. Boone] Pickens
and
[Carl] Lindner -- and Lindner, a long time
supporter of Israel, is the most
Jewish non-Jew I've ever known." [BRUCK,
p. 205] (In 1999, Lindner
became controlling owner of the Cincinnati
Reds professional baseball
team.)
"It is hard to grasp the magnitude
and the scope of the crime that unfolded beginning in the mid-1970s,"
wrote a Wall Street Journal editor James Stewart, "in the
nation's market and financial institutions. It dwarfs any comparable financial
crime, from the Great Train Robbery to the stock-manipulation schemes that
gave rise to the nation's securities laws in the first place. The magnitude
of the illegal gains was so large as to be incomprehensible to most laymen."
[STEWART, p. 115] "[Michael] Milken [and] some of his Drexel colleagues
and anointed players," says Connie Bruck, "had made more money in
a shorter period of time than any other individuals had done in the history
of this country." [BRUCK, p. 20]
"A variety of critics voiced their
apprehension about what they saw as greed that had gone out of control,"
says Ehrlich and Rehfeld, "... over the course of the next three years,
it was revealed that more than a dozen insiders -- many of them members of
Wall Street's most powerful firms -- as well as one of the hottest houses
on the Street, had amassed millions of dollars in illegal profits. The accused
were charged with violating securities laws that prohibited insider trading,
that is, they used material confidential information primarily about impending
merger bids, to profit from securities and transactions." [EHRLICH, p.
338]
"During the crime wave," says
Stewart, "the ownership of entire corporations changed hands, often forcibly,
at a clip never before witnessed. Household names -- Carnation, Beatrice,
General Foods, Diamond Shamrock -- vanished in takeovers that spawned criminal
activity and violations of securities laws. Others, companies like Unocal
and Union Carbide, survived but were heavily crippled. Thousands of workers
lost their jobs, companies loaded up with debt to pay for the deals, profits
were sacrificed to pay interest costs on the borrowings, and even so, many
companies were eventually forced into bankruptcy or restructurings. Bondholders
and shareholders lost millions more. Greed alone cannot account for such a
toll. These are the costs of greed coupled with market power -- power unrestrained
by the normal checks and balances of the free market place." [STEWART,
p. 16]
A major wheeler-dealer in the 1980s scandals
was Ivan Boesky, who was (only a year before his 'public disgrace') also the
Chairman of the New York area United Jewish Appeal. He also was a member of
the board of both Yehsiva University and the Jewish Theological Seminary of
America, as well as a self-described "founder and supporter" of
the Simon Wiesenthal Center in Los Angeles. "Boesky's Jewish involvement," noted
the Jewish Week, "resurfaced in the media at the time of his sentencing
in December, with revelations that he had been taking classes at the Jewish
Theological Seminary while awaiting sentencing and that leaders of some organizations
that benefited from his gifts had written character references to the court,
attesting to his generosity. The letters have sparked a new internecine debate
among Jewish activists. Some claimed that Jewish philanthropies were 'going
to bat' for a confessed felon because they had 'gotten their cut' from his
ill-gotten wealth." [GOLDBERG, JEWISH WEEK, 1-8-88, p. 41] "Many
Jews," wrote Ehrlich and Rehfeld, "worried that his trading abuses
could cast a pall over the entire Jewish community. Not only was he the most
important figure in the scandal, he was deeply involved in Jewish philanthropy."
[EHRLICH, p. 341], including a $2.5 million donation to the Jewish Theological
Seminary for a library to be named after him and his wife.
This former head of the UJA was a particularly
nefarious character. He had been fined for violating New York Stock Exchange
trade laws in the 1970s; [EHRLICH, p. 317], his 1985 book Merger Mania
was written by a ghost writer, Jeffrey Madrick, and largely patterned (without
saying so) on an existing volume by Guy Wyser-Pratte. [EHRLICH, p. 326] Boesky
was the time of man who watched his employees throughout his company by a
video system in his office; [p. 324] he paid up to $5 apiece for catered lunches
so employees wouldn't have to leave their desks, [p. 36] and "screamed
at [employees] regularly." His oldest son, Billy, is reported to have
called his father "stark raving mad." [p. 40] Upon Boesky's installment
as the UJA campaign general chairman, he told his Jewish audience: "We
must make an enormous effort to encourage people's sense of responsibility
-- to be sure that at the very top we have the right attitudes about giving
to the campaign. Attitude filters down." [JEWISH WEEK, 6-29-84, p. 7]
The biggest fish caught in the Wall Street
scandal, however, was super billionaire Michael Milken, the "junk bond
king," who was charged with racketeering and mail and securities fraud.
Milken single-handedly threatened to fulfill in real life the most profound
of traditional anti-Semitic nightmare fantasies. A former Milken associate,
notes Jewish journalist Connie Bruck, saw in Milken "the force of ... obsession, the megalomania, the conviction
of a cause so just that the end justifies the means and, finally, the conceptualization
of the corporate vehicle as a means of extending control nationwide -- and
then worldwide." [BRUCK, p. 358] "Many billions of dollars were
at his command," notes Bruck, "capital, as Milken had been saying
and proving for a long time, was not a scarce resource. The only limits to
his power, it seemed, would be the limits of his fertile imagination."
[BRUCK, p. 359] Milken, sometimes
present at Simon Wiesenthal functions [BRUCK, p. 313], was well-known for
being able to assemble billions of dollars overnight to aid corporate takeovers.
At a yearly Milken-centered conference of the world's leading corporate takeover
specialists, affectionately called the Predator's Ball, a close Milken associate,
Donald Engel, arranged for high-priced prostitutes to service the gathered
"predators." [BRUCK, p. 15]
The goal of Milken and his predatory cronies,
says Leon Black of Drexel Lambart (the company that was ostensibly Milken's
employer) was to finance "the robber barons who would become the owners
of major companies in the future." [BRUCK, p. 149] (Black's father, Eli, was the "rabbinically-trained
corporate chieftain of United Brands"
who in 1975 jumped out a skyscraper window when it was revealed that he was
paying bribes to foreign governments). [BRUCK, p. 65] Among the players in
this scenario, Black particularly noted robber barons Carl Icahn, Henry Kravits
(who guided a $6.2 billion buyout of the Beatrice company), Samuel Heyman
(chairman of GAF who bid $6 billion for Union Carbide), Ronald Perelman, and
a lone Gentile, Rupert Murdoch (who was financed by Milken to take over Metromedia).
[BRUCK, p. 245] "By ... 1985...,"
says Connie Bruck, "Milken was moving his players across the M&A
[corporate mergers and acquisitions] field as though it were a chess board."
[BRUCK, p. 106]
Ron Perelman's rise is typical. Closely
associated with Milken, his mentor's junk bonds supported a variety of Perelman-inspired
corporate invasions. Perelman seized a resistant
Revlon with a company one-eighth its size,
Pantry Pride. (In 1991 he installed
Jerry Levin to head it). He also took over a group of tottering Savings and
Loans for $315 million, suddenly controlling $7.1 billion in assets. In 1982
Perelman faced a lawsuit in his takeover of
Technicolor. "Taken as a whole,"
says Connie Bruck, "the complaint painted a picture of Perelman allegedly
using deceit and secret deals -- money here, position there, whatever it took
-- to buy off the necessary people and get the company." [DEALY, p. 308]
In Perelman's hostile takeover of
Revlon,
he tried to bribe the CEO of that company, Michel Bergerac. [BRUCK, p. 194]
Another key Milken crony was Fred Carr (born
Seymour Fred Cohen), head of the Beverly Hills-based
First Executive Corporation, described by Benjamin Stein as "the
largest insurance catastrophe in the history of the United States." [STEIN,
B., p. 86] Others who made use of
Milken junk bonds to build illusorily business empires include Perry Mendel
and Richard Grassgreen of the conglomerate
Enstar (in Montgomery, Alabama).
Enstar eventually went bankrupt, becoming, notes Benjamin Stein, "a
source of rage, frustration, and loss for the people of Montgomery. They were
taken, and taken badly." [STEIN, B., p. 111] Mendel and Grassgreen were convicted of fraud
in 1991.
Milken has had a powerful hand in a wide
range of other attempted corporate takeovers. "He would cause frightened
managements," says Bruck, "to focus on short term gains and elaborate
defenses rather than research and development that makes for sustained [corporate]
growth. It would cause the loss of jobs, as companies were taken over and
broken up." [BRUCK, p. 19] Milken aided, for further example, Eli Jacobs'
acquisition of the Memorex Corporation
in 1986. And during the banking Savings and Loans scandals of the 1980s,
Columbia Savings had a branch office
one floor above Milken's own office;
Columbia CEO Thomas Spiegel eventually purchased about $4 billion
of Milken's junk bonds. [DEALY, p. 307] In the early 1980s Saul Steinberg,
with Milken financing, had attempted a hostile takeover of the
Disney corporation. "Steinberg got calls from friends, Jews and
non-Jews alike," notes Joe Flower, "warning him, saying, as Steinberg
later characterized it, 'Saul, it's going to be you -- and with the name Saul
Steinberg it's clear where you are and what you are -- taking over another
white Anglo-Saxon Protestant company. In all the little towns of America they're
going to say, 'That Jew took over Walt Disney. What would Walt say?'
But the warnings did not make Steinberg hesitate. 'They just made me
angry.'" [FLOWER, p. 112]
In 1969 Steinberg had tried to take over
one of the most important banks in America, the $9 billion Chemical Bank.
"Those who ... combined against him," noted Connie Bruck, "included
not only the director and management of Chemical, but most of the banking
business, Governor Nelson A. Rockefeller and the legislature of New York state,
and members of the Federal Reserve Board and the Senate Banking and Currency
Committee." [BRUCK, p. 36]
Although Milken eventually agreed to accept
a six felonies conviction and pay $600 million (a sum larger than the yearly
budget of the Securities Commission that sought to prosecute him) [p. 16],
the prosecution of fabulously wealthy Milken was no easy matter. There was,
for all intents and purposes, no money limit to his personal defense. He and
his firm, Drexel, planned to spend up to $650 million to fight his conviction.
[STEWART, p. 347] This included a massive $140 million public relations campaign
to change his public image from criminal to hero, an effort "revolving
around the theme that [he and his company] help[ed] to raise money [that]
benefited every American." [STEWART, p. 346] The public relations firm
Milken hired referred to him as a "national treasure." [STEWART,
p. 377] In an effort to control public discourse about himself, Milken even
bought the rights to photographs of him at all the news wire companies. [STEWART,
p. 372] In February 1986 he even offered
to pay journalist Connie Bruck to not finish, and publish, a book she was
working on about him and his associates. [STEWART, p. 381] Expecting a significant
Black presence in the New York City jury that would try him, Milken hired
an expert on public relations in the Black community; the wealthy financier
suddenly had an interest in the underprivileged and paid for 1,700 ghetto
kids to go to a Mets baseball game. [STEWART, p. 400] Milken clients and sycophants
even took out full page ads in major papers, including the New York Times,
proclaiming, "We Believe in You." [STEWART, p. 418]
Milken ended up spending only a little over
two years in prison, a small sacrifice for the staggering amount of wealth
he accumulated. He was sentenced, notes Jewish scholar Norman Cantor, "by
a Gentile woman judge who was married to a prominent Jewish lawyer. Eventually
she found grounds for sharply reducing his sentence ... The skill of some
Jewish billionaires in skirting the limits of the law but somehow emerging
unscathed, with the aid of high-priced Jewish attorneys, and a compliant press,
was remarkable." [CANTOR, p. 404] Milken court fines alone eventually
amounted to $1.1 billion.
Still on probation, in November 1997 the New York Times noted that
"evidence of further illegal behavior since his release might well cause
the government to request further sanctions against Mr. Milken, including
even his return to prison." [TRUELL, D4] Since prison, Milken has been
busy collecting tens of millions of dollars, "counseling" the
MCI Communications Corporation, advising
principal players in the Time-Warner-Turner Broadcasting mass media
merger, and working with financier Ronald Perelman. In 1996 the New York
Times noted Milken's presence in Israel in negotiations with a company
called the Eisenberg Group. "The
Milken Group," said the Times, "might invest in Israel Chemicals,
of which the Israeli government owns 48.5%." [NYT, 8-14-96] The Eisenberg
Group at the fore of all this is headed by Shaul Eisenberg, the richest man
in Israel, who, "says Alan Vorspan, "[is] the shadowy Israeli billionaire
who had been brokering Israel defense technology to China for more than ten
years ... 'Arms merchant of the world' is not synonymous with a 'light unto
the nations.'" [VORSPAN, p. 31] "The arms business," note Andrew
and Leslie Cockburn, "was and remains central to [Eisenberg's] operation."
[COCKBURN, p. 17] Other holdings include everything from chemical
factories in Korea to projects in Central America. [COCKBURN, p. 12-13]
James Stewart, a non-Jew and an
editor at the Wall Street Journal, came under fierce attack for "anti-Semitism"
for his book about Milken and the Wall Street scandals, the Den of Thieves (a title taken from this New Testament verse:
"And Jesus went into the temple of God, and cast out all them that sold
and bought in the temple, and overthrew the table of the money changers, and
the seats of them that sold doves. And say unto them, it is written. My house
shall be called the house of prayer; but ye have made it a den of thieves."
[MATHEW, 21:12-13])
A lawyer for Milken, a man we have run across
before, Alan Dershowitz, tried to use the now standard Jewish defense argument
-- an accusation of anti-Semitism -- as a tool to spare his criminal client
jail time. Dershowitz published editorial pieces in the Wall Street Journal
attacking Stewart. He also paid $45,000 for a full page ad in the New York
Times the next day to outline his accusations, and half-page ads in other
papers, everywhere charging anti-Semitism. In a letter to the New York
Times Book Review section Dershowitz attacked both Stewart and the Review's
reviewer of Den of Thieves, Michael Thomas, (a "money" columnist
for the New York Observer) for alleged anti-Semitism. "Both,"
Dershowitz wrote, "seem preoccupied by Jews."
In defense, Thomas (whose novel Hanover
Place and its free exploration of Jewish corruption on Wall Street has
also been called anti-Semitic) said:
"If I point out that 9 out of 10 people
involved in street crime are Blacks,
that's an interesting sociological observation.
If I point out that 9 out of
10 people involved in securities indictments
are Jewish, that is an anti-
Semitic slur. I cannot sort the difference."
[HOYT]
When business journalist Connie Bruck published
The Predator's Ball, a volume about Milken and the junk bond world,
a Drexel lawyer (where Milken worked) accused her of anti-Semitism. "I
remember a lawyer at Chas Gordeon and Reindel screaming at me and accusing
me of anti-Semitism," said Bruck later, "And I'm Jewish, so that
made it more unpleasant. It all comes from Milken. Milken told friends of
his, who repeated it to me, that he believed the government's investigation
was fueled by anti-Semitism." [HOYT]
"If Stewart is guilty of anything,"
wrote Allen Sloan of Newsday, "it's breaking the Cohen Rule when
dealing with ethnic groups. It's only safe to identify a person ethnically
or racially in a positive context ... Down deep we all understand the rules.
But these rules shackle journalists and muffle the truth. They amount to censorship
... By blasting Stewart (a full page ad, for crying out loud!) for doing nothing
more than stating the truth, Dershowitz has attempted to discredit his reporting
by besmirching his character -- and, in the process, making Milken seem a
victim of religious bigotry. Dershowitz's accusations, beside the point and
below the belt, is a form of scapegoatism that comes perilously close to what
it purportedly condemns." [HOYT]
Across the ocean, England had its own very
publicized Jewish financier scandal at about the same time -- sometimes known
as the "Guinness Four" affair. It was, noted the (London) Independent,
"the most notorious insider dealing fraud of the Eighties," a plot
to boost the share value of the Guinness
corporation. [BRAID, p. 1] On trial were Gerald Ronson (head of
Heron International), Ernest Saunders, Jack Lyons, and Anthony Parnes.
They were all convicted, but each received reduced, short-term jail sentences.
"All four defendants," noted the Times (of London), "...
are Jews ... Any attempt to incite anti-Semitism because of Jewish financial
misbehavior has to be deplored and opposed. But any attempt to minimize or
excuse the offenses is also unacceptable ... In folk prejudice the 'Jewish
banker' is an unkind cliché, but herein lies the problem. He exists ... Quiet
voices are to be heard that such [beat the system] attitudes are more common
than ought to be any Jewish financier. And recognizing that such a malady
exists is the first condition for curing it." [LONGLEY, 9-1-90]
Only a few years earlier, in the 1980s too,
was the case of yet another prominent Jewish American entrepreneur, Marc Rich
(father's name originally Reich). "In the shadowy, secret world of commodities
trading," noted John Ingham and Lynne Feldman, "Marc Rich had no
peer ... Appellations for Marc Rich have included 'ruthless tycoon,' 'vengeful
businessman,' and 'scheming marketeer.' Often called the most corrupt man
in this fraternity of free booting capitalists, Rich was also among the most
secretive." [INGHAM/FELDMAN, p. 550] Rich even managed to profit off
millions of barrels of oil from Iran during the Iranian hostage crisis. In
1983, he and associate, Pinky Green, fled to Switzerland to avoid a warrant
out for their arrest. (Rich has deep ties to Israel and has been involved
over the years in "negotiating the return of captured Israeli soldiers
and Jewish dissidents. In a controversial move, President Bill Clinton pardoned
Rich's crimes as he left the White House in 2001. "Several Israeli officials
wrote Clinton in support of [Rich's] pardon.") [MSNBC, 2-2-2001]
Perhaps
Rich had occasion in Europe to run into fellow white collar criminal Gerald
Goldwell. Goldwell, notes a volume entitled Organized Crime in Europe,
epitomized those involved in "extensive international fraud ... making
use of several shell companies and of insolvent firms ... The leader of one
of the largest such organizations was Gerald Goldwell, a well-known American
fraudster, whose career of 15 years in business crime made him one of the
most experienced crime entrepreneurs in his field." [DUYNE, p. 12]
Based in Amsterdam, Goldwell's criminal scope included Bermuda, Dutch
Antilles, the Bahamas, Canada, Luxemburg, Germany and Panama.
In 1980, in Switzerland, a Jewish immigrant
from Bulgaria, Eli Pinkas, and his wife committed suicide as their swindles
began collapsing down upon him. After his death, noted the Washington Post,
"it was revealed that the quiet executive was, in fact, a master swindler
who created an elaborate portfolio of false documents and records to steal
more than $140 million from an international array of banks and industries."
The Pinkas scam was noted as the "biggest private financial scandal in
recent Swiss history." [BERRY, J., F., 7-20-80, p. A1]
At about the same time in Panama, in an
unrelated criminal enterprise, Jewish entrepreneur Isaac Zafrani "in
two years time, had become the most powerful video pirate in the world. By
selling fraudulent copies of first-run films, Zafrani, more than any other
single operation world-wide, posed the greatest threat to legitimate video
and theatrical interests." By 1984, his profits in the bootleg business
were about $20 million. [FRANKLIN, P., p. 113]
In fact, the whole Jewish state of Israel is an Isaac Zafrani. As Israel's Institute
for Advanced Strategic and Political Studies noted in March 2000:
"Israel is known the world over for
intellectual properties rights
piracy. Indeed, it is likely that Israel
will soon be downgraded from
the second worst rating of violating countries
to the worst by the
International Property Alliance (IIPA),
the international organization
fighting software and intellectual property
crimes of piracy."
[INSTITUTE FOR ADVANCED STRATEGIC..., 2000]
"In 1998," notes the Israeli newspaper Haaretz, "an American delegation visited Israel to investigate
the issue and found Israel to be 'an international center for pirate distribution'
-- estimating that the extent of the forgery industry reached tens, maybe
hundreds, of millions of dollars. The U. S. delegation threatened to impose
sanctions against Israel by increasing duty tax for Israeli imports to the
United States. The delegation also noted that the Israeli forgery industry
has grown in recent years because of the infiltration of organized crime."
[ALON, G., 6-22-01]
The 1980s also highlighted young Jewish swindler
Barry Minkow of Reseda, California, whose misdeeds entitled his story to be
immortalized in an entire volume, subtitled The Kid Who Swindled Wall Street.
Minkow was sentenced to prison. "Barry," notes Daniel Akst, "succeeded
in creating not a corporation, but the hologram of one." His
ZZZZ
Best firm, founded on carpet-cleaning, eventually was worth $200 million.
As a result of Minkow's scams, "widows and orphans lost their money.
Hard working folks lost their jobs, or had their careers ruined, their lives
stained, their hopes turned to ash." The author who recounts Minkow's
business career calls him a psychopath, "someone who can act without
regard to conscience, victimizing people again and again without remorse."
[AKST, D., p. 5, 6, 270] Minkow associates included Maurice Rind, "a
stock swindler before financial fraud was fashionable." [AKST, D., p.
vii]
In a 1994 case, Martin Wolfe of Baton Raton,
Florida, was the "principal figure" in a nationwide investment scam
involving pizza vending machines, defrauding some investors of their life
savings for nonexistent machines. "You have to plant the seed,"
Wolfe once told a business audience, "so the seed grows into an oak,
and the oak grows into greed, which takes over the whole body. Greed is good."
[IWANOWSKI, J., 3-20-94, p. E1] In 1996 investors in California's Pioneer
Mortgage firm lost $250 million. As the San Diego Union Tribune observed,
"Many got in because Pioneer's Chief Executive -- Gary Naiman -- was
very active in his synagogue and activities related to Israel." [BAUDER,
D., 1-19-96, p. C2]
In Arizona, in 1997, Ben Friedman "pleaded
guilty to 3 of 73 felony charges of securities and tax frauds ... [He] bilked
his investors out of more than $2.5 million and the state of Arizona out of
more than $5 million in unpaid taxes." After a five year investigation
into Friedman's wheelings and dealings, the Arizona State Department of Revenue
concluded that "This is the largest tax prosecution involving personal
income taxes the department has ever undertaken. All the Arizona personal
income tax cases prosecuted to date would not equal what Mr. Friedman evaded."
[SILVERMAN, A., 5-14-98]
In 2002, the Securities and Exchange Commission
(SEC) "accused [Reed] Slatkin [a Jew who became a Scientologist] of running
a Ponzi scheme shortly after her filed for bankruptcy in May 2001. (A Ponzi
scheme is a phony investment plan in which money provided by later investors
is used to pay artificially high returns to the initial investors, with the
goal of attracting as many investors as possible). Slatkin's allged scheme
is said to be one of the biggest cases of investment fraud in American history."
[WEING, G., 1-11-02]
Beginning in 1977, the FBI launched a secret
investigation into the world of white-collar crime. Known as "Abscam,"
the investigation eventually led to a
number of bribe-taking Congressmen. The central player recruited by the FBI
sting operation to penetrate the world of white-collar fraud was an expert
in the field, life-long swindler Mel Weinberg, "who had worked North
America and five other continents, fleecing public officials, movie stars,
dictators, generals, mobsters, political terrorists, and ordinary businessmen
with democratic impartiality." [GREENE, 1981, p. 2] Weinberg was set up as a representative for a fake wealthy Arabian
oil sheik, Abdul, and his networking for the FBI in the white collar underworld
netted people from a number of backgrounds. In the Jewish community, these
included Herman Weiss, Joe Meltzer, William Rosenberg ("a picture version
of the affluent swindler") [GREENE, 1981, p. 9], Ben Cohen (a Miami lawyer
"who once represented the Florida gambling syndicate,") [GREENE,
1981, p. 129], Marvin Rappaport ("who was anxious to supply Abdul with
sex films"), [GREENE, 1981, p. 129], and Greg Katz ("who had become
a millionaire through a series of corrupt deals with New Jersey Democratic
officials spanning thirty years.") [GREENE, p. 162]
In Argentina and other Latin American countries
in the late 1970s, notes Jerome Barromi, there were "a series of financial
and political scandals involving prominent Jews." Among those charged
was Mexican-based "powerful financier" David Gravier; family members
him were also arrested and "accused of having laundered and recycled
money from the Montoneros, acquired by bank robberies and kidnapping wealthy
businessmen." (At least one prominent member in the revolutionary Montoneros
organization, wanted by the government, was given refuge, on the basis of
his Jewish credentials, in Israel). [SACHER, H., 1985, p. 299] "With
several other Jewish investors, most of them Mexican, Gravier used his family
bank to purchase controlling shares of the American Bank and Trust, a major
New York financial institution. He then skimmed $50 million out of ABT, precipitating
its collapse and the liquidation of $180 million of its deposits." Among
the depositors were generals in Argentina's military. [SACHAR, H., 1985, p.
304] In 1977, "a new scandal erupted, the bankruptcy of the Jewish-owned
(the Argentine Madanes family) aluminum factory,
ALUAR." [BARROMI, p. 31] "Then
came the [Jose Ber] Gelbar scandal," notes Jewish scholar Howard Sachar,
"involving the first Jew to serve in a Peruvian cabinet. "Accused
of graft in accumulating the fortune required for purchasing his vast investment
[in ALUAR]," he fled to the
United States. [SACHAR, H., 1985, p. 304]
In 2001, the Jewish Telegraphic Agency
covered a panel discussion about the Jewish situation in Argentina, noting:
"According to Argentine Jewish expatriates
in the audience, the Jewish leadership
in the country is entrenched, incompetent and
corrupt. They also claimed that
the two Jewish-run banks were linked closely
to a corrupt government and played
fast and loose with the community's money. When
the banks failed, some $26
million in communal assets were lost overnight.
'My brother can get over losing
his money, but he cannot get over the fact that
Jews betrayed other Jews, [Rabbi
Alfredo] Borodowski said." [JORDAN, M.,
6-28-01]
In Australia, noted the 1994 American
Jewish Yearbook, there were arrest warrants out for
"Abe Goldberg and a business associate,
Katy Rochelle Boskowitz ...
over the multimillion dollar collapse in
1990 of the Linter textile and
investment group and alleged fraudulent
borrowing and misconduct.
Boskowitz was arrested, but Goldberg remained
in his native Poland ...
which has no extradition treaty with Poland.
Robyn Greenberg,
convicted of fraud following the demise
of a women's investment
and finance group in western Australia,
was sentenced to 17 years in
prison. Some saw the harsh sentence as
inspired by anti-Semitism.
Others by sexism." [SINGER/SELDIN,
1994, p. 373]
In the wake of the much-publicized Wall
Street scandals, in 1987 the New York Jewish Week devoted a seven page
"special report" entitled "Are We Facing a Crisis in Jewish
Ethics?" to the theme of recurrent Jewish corruption. The newspaper noted
that
"Four years ago, Jewish bankers
in the Jewish state conspired in what
has become known as Israel's bank shares
scandal. Of the four banks,
one was owned by Histradut [Israel's
labor federation], one by the
Jewish Agency, and one by Mizrachi.
Last year, a New York yeshiva
that was the seat for a grand rabbi
was involved in a money-laundering
scheme for area businesses. Some of
them were reported to be illegal.
Two officials of the school were indicted
and convicted. This year a
prominent Wall Street figure and a lay
leader of the New York Jewish
community pleaded guilty to insider
trading violations on what is said
to be a massive scale. Several others
have since been indicted -- and
most so far are Jewish. And then there
are the various corruption
scandals currently plaguing New York:
public officials betraying the
public trust by lining their own pockets
-- and, or so it would seem,
almost all of them Jewish." [JEWISH
WEEK, 5-15-87, p. 25]
Jewish names swirling in New York City scandals
in the late 1980s included Alex Liberman, Stanley Friedman, Marvin Kaplan,
Michael Lazar, Lester Shafran, Shelley Chevlowe, Victor Botnick, Jay Turoff,
Melvin Lebetkin, Geoffrey Lindenauer, Charles Berg, Bernard Sandow (head of
New York's Parking Violations Bureau) and Donald Manes (Queens Borough president),
among others. [NEWFIELD/BARRETT, 1988; THE RECORD, 3-18-88, p. C22]
Friedman (head of the Bronx Democratic Party), Lazar (City Transportation
Administrator) and Shafran (Director of the City Parking Bureau) were convicted
of racketeering (involving bribes, kickbacks, et al). Kaplan, who had a $22
million contract with New York City's parking bureau, was convicted of perjury.
[LUBISCH, A., p. B3]
In 1998, the tide had not abated: the lament
in the Canadian Jewish News was still the same: "In recent years
a wave of financial scandals have shaken the Jewish community. How to conduct
one's business ethnically is emerging as a central concern among rabbis and
responsible community leaders." [CAN JEW NEWS, Business Ethics] In 1999, the same Jewish newspaper followed
up with another article about this insistent subject, saying:
"Unfortunately, all too often (once
is too often) we hear about ritually
observant Jews involved in white collar
crimes: tax evasion, money
laundering, embezzlement and fraud. Perhaps
even worse is the attitude
that one so often hears in casual conversation:
'I am only an employee,
so I can't write off personal expenses,'
or 'Of course I pay my contractor
in cash,' thereby helping him evade his
tax responsibility and thus stealing
from the honest taxpayer ... For some, the
phenomenon is culturally
based ... [Because of historical discriminations
against Jews] Jews had
to resort to cheating. This attitude was
then carried over to our
democracies ... It does not require a very
close examination of our
general business practices to realize that
a serious problem exists...
We must continue to work until people stop
and say: 'What a wonderful
Torah the Jewish people have. Look at the
honesty and integrity of
of those who keep it." [KELMAN, J.,
10-14-99, p. 9]
In 2001, 51 people were indicted for fraud worth
millions of dollars in a rigging of McDonald's
promotional
games.
"The scheme [involved] friends and close-knit family members, including
a husband and wife." Jerome P. Jacobson, the scam ringleader and director
of security for Simon Marketing Inc. (the firm contracted by McDonald's to
run its promotional games: i.e., Monopoly and Who Wants to Be a
Millionaire?), "embezzled more than $20 million worth of winning
McDonald's game pieces from his employer." Names of those indicted are
hard to come by, but those listed with Jacobson by the Miami Herald
were Bernard Weintraub and Adam Zucker. (Unindicted CEO of McDonalds? Jack
Greenberg). Attorney General John Ashcroft announced that "the complaint
alleges that Jacobson provided the winning game pieces to his friends and
associates who acted as recruiters. These recruiters then solicited others
who falsely and fraudulently represented that they were the legitmiate winners
of the McDonald's games." [MIAMI HERALD, 12-9-01]
[CNN, 8-22-01]
In the Jewish homeland, in 1994,
Agence
France Presse noted that "investigations, scandals, and trials involving
securities dealers and the country's biggest banks have shaken Israel's financial
markets as they've never been shaken before." [SCHATTNER] This included
the arrests of Vladimir Saar and Arie Shafir for securities crimes, as well
as the jailing of Amos Weiss, "one of Israel's leading securities dealers."
[SCHATTNER]
In 2001, the Isaeli
newspaper Haaretz noted that
Three years later, in 1997, not much had
changed in the name of "Jewish ethics" in the Jewish homeland. The
Cleveland Jewish News began an article by stating that "Israel
seems to be going through a golden age of corruption and criminality,"
and then listed those in the so-called "Bar-On affair," including
Knesset member Arye Deri's trial for accepting bribes; building contractor
David Appel's "cheating poor immigrants out of hundreds of thousands
of dollars in government compensation"; the investigation into the Prime
Minister's chief aide Avigdor Lieberman's falsification of documents; Dror
Hoter Isha'i, head of the Israel Bar Association, and his trial for income
tax evasion; and an investigation of Jerusalem mayor Ehud Olmert for falsification
of election campaign documents. "But that's just in the Bar-On affair,"
notes the News, "the Israeli government is chockfull of other
senior figures who have been accused of corruption and/or malfeasance."
[DERFNER, Corruption, p. 8] These
include police investigations of Shas Knesset member Rafael Pinchasi, Internal
Security Minister Avigdor Kahalani, former Justice Minister Ya'acov Ne'eman,
former Shas Knesset member Yair Levy, Labor Knesset member Binyamin Ben-Eliezer,
and National Religious Party member Avner Shaki. "As for the mayors who
have gone on trial for corruption and other sorts of crimes," notes the
News, "the list is far too long to mention." [DERFNER, p.
8]
In 1994 the chairman of the Jewish Agency,
Simcha Dinitz, had earlier joined the crowd when he was charged with fraudulent
use of agency credit cards and other indiscretions, [HOFFMAN, D, p. A12] and
in 1996 the Jewish National Fund weathered "a scandal over alleged financial
mismanagement." [FORWARD, 3-21-97, p. 4] In 1997, an Israeli millionaire, Nahum Manbar,
was convicted of treason for selling material to Iran that has value in the
manufacture of poison gas. A member of Manbar's legal defense team was even
found to have had simultaneous affairs with the judge on the case, the Israeli
prime minister's media advisor, and a Shin Bet secret police officer. [BORGER,
p. 16] That same year, Dudu Topaz, a major Israeli television personality,
was exposed for the fraudulent system of his game show.
In 1999, Ofer Nimrodi, chairman of one of
the largest newspapers in Israel, Ma'ariv, went to prison for four
months "for electronically eavesdropping on his two competitors as well
as on other media figures." A former employee, Rafi Pridan, was also
reported "to have tapes of his
old boss planning to murder the publishers of two rival newspapers, plus a
private eye who once help put Nimrodi -- and Pridan -- in jail for wiretapping."
[MAKOVSKY, p. 63]
Recent Israeli military-related scandals
include a controversial over an early release date from jail for an air force
general, Rami Dotan, who was imprisoned for embezzling $12 million, and Yehuda
Gil, a senior Mossad [Israeli CIA] official, who was finally caught inventing
-- continually for ten years -- information from an entirely fabricated spy
in Syria. Enjoying the status of being a spy legend in Israel, Gil's total
fictions nearly brought Israel to war with its Arab neighbor. [DAVIS, D, p. 10]
In 1999, the Associated Press reported
that "several former officials of Israel's biggest bus company are suspected
of accepting millions of dollars in bribes" [AP, Israel's] and
in another story that "Israeli police have recommended that outgoing
Justice Minister Tsahi Hanegbi be charged with corruption." [AP, Police]
That same year too, "Israeli police arrested a local official of the
ultra-Orthodox Shas party [Yehuda Kehati] -- a key ally of Prime Minister
Benyamin Netanyahu -- Saturday over allegations of fraud in connection with
Monday's elections for parliament and prime ministership ... Fraud allegations
are nothing new in Israeli politics." [AGENCE FRANCE PRESSE, Ultra] A little while later came losing Prime Minister
Netanyahu's turn: "Two months after bowing out of public life, Benyamin
Netanyahu was back in the spotlight at the center of a police probe by the
national fraud squad. Israel's former first couple are suspected of corruption,
abuse of trust, attempting to suborn witnesses, and hindering the investigation,
which centers on 100,000 dollars of renovations and other work at two Jerusalem
homes." [WEGMAN] In 2001, the Washington Post noted that,
with 1994 changes in Israeli election laws, "as a result many Israeli
politicians resorted to a wide range of illegal and semi-legal ways to raise
money, including setting up nonprofit organizations, whose records are shielded
from public inquiry." [DOBBS, M., 2-21-01] That same year, after a building
collapsed in Jerusalem killing 23 people, the Israeli newspaper Haaretz
noted that
"Construction regulation in Jerusalem has
been under a cloud since November
1999, when a huge corruption scandal exploded
under the city's construction
regulation department. After a six month undercover
operation, Jerusalem
poolice uncovered a ring of municipality officials
who systematically
accepted hundreds of thousands of shekels in
bribes from architects
and contractors." [AVRAHAMI, I., 5-27-01]
In 1999, in examining Israeli Likud Party
fundraising, the Jewish Week noted that "almost $300,000 appears
to have vanished somewhere between the United States and its Israeli charitable
destination. And at least under $160,000 -- donated by right-wing philanthropist
Dr. Irving Moskowitz to a fund-raiser linked to Likud -- was never reported
to the U.S. Internal Revenue Service, as required by law." [COHLER-ESSES,
L., 2-19-99, p. 1] In 2001, "[Israeli] Histradut Teachers Union
head Avraham Ben-Shabbat and his deputy Uri Groman, were placed under 14 days'
house arrest by Tel Aviv District Court ... after both admitted to fraudulently
obtaining academic degrees, then using them to receive higher pay." [SOMMER,
A., 12-11-01]
And let us not forget the swindles befalling
some of the immigrants to Israel from the former Soviet Union. In 1996, a
class action suit was filed against Va'ad (the Ukrainian Jewish immigration
umbrella organization), an immigration activist named Yosef Zisels, the Jewish
Agency, and the Liason Bureau of the Israeli government. "According to
the charges," notes the Jerusalem Post, "the immigrants gave
money from their savings and the sale of their property to Zisels to transfer
to Israel at the advice of emissaries working for the agency and bureau. However,
they claim they were not paid the sums half a year later, as had been stipulated
in the contract with the Va'ad." [TSUR, p. 6] Then came the 1999 investigations
of "lawyers who reportedly cheated thousands of elderly Israelis out
of more than half a billion dollars by offering to help them obtain German
pensions. [i.e., Holocaust-era reparations]" [BARSHI]
In November of 1999 the Montreal Gazette
noted that
"It was scandal, and lots of it, that
truly occupies the country's [Israel's]
attention. There was a scandal of lust,
scandal of greed, scandal
of corruption. There was a scandal involving
the national soccer
team for losing a key match following pregame
visits to a house
of ill repute. There was a scandal involving
former prime minister
Benyamin Netanyahu and his wife, Sarah,
accused of accepting
bribes and stealing valuable state gifts.
And there was yeshiva
scandal aplenty. So much muck was being
raked that the
newspaper Yediot Ahronot even ran a full-page
scandal guide
on Friday, with boxes for every major affair,
its suspects, its
allegations and the status of its investigation."
[SONTAG, D.,
11-28-99, p. 17]
In 2000, nothing had changed. The Jewish
Week headlined an article "Israel Sinking in Scandal Swamp: 'Light
Unto Nations' Seen Losing Moral Bearing Amid Corruption, Fraud Probes."
New scandals included those surrounding Israel's president, Ezer Weizman,
who had taken hundreds of thousands of dollars in a secret fund from French
Jewish millionaire Edouard Sarousi, and Prime Minister Ehud Barak "who
was questioned by state Comptroller Eliezer Goldberg last week about allegations
that fictitious associations illegally pumped foreign contributions into his
1999 election campaign." [AIN, S., 1-28-2000, p. 1]
In 2002, Israeli MK (Member of Knesset/Parliament)
Michael Kleiner complained that "World Jewish organizations are set to
'rake into their coffers' some $1 billion in unclaimed funds allocated by
Swiss banks to compensate for assets from dormant Holocaust-era accounts ...
Kleiner accused the [Israeli] government, along with Jewish organizations,
of compliance in allowing the Swiss to avoid publishing the lists of bank
account and insurance policyholders. The Jewish organizations have a conflict
of interests, he said, since they cut a deal under which all unclaimed monies
would go to them." [GILBERT, N., 1-15-02]
Scandals in Israel are an old theme. Looking
back to the 1970s, notes Richard Rubenstein, "there was a serious loss
of public confidence in the Labor government [the then-empowered political
party] as a result of revelations of economic corruption and greed among some
government leaders, heads of state-owned banks, corporations, and the Histradut
labor federation." [RUBENSTEIN, R., p. 229] And as World Zionist Organization
president Nahum Goldmann noted about Israel's first prime minister, David
Ben Gurion:
"A promise to him was quite worthless.
He did not hesitate to promise
one thing and do the opposite. He was absolutely
unscrupulous. He
never pursued any objective other than realizing
the Zionist ideal
and satiating his immense ambition."
[GOLDMANN, N., 1978, p. 94]
In 2001, a London Guardian reporter noted with
outrage that Israel has blatantly "cheated and lied and abused the trust"
it had in trade agreements with European nations. "No sooner had the
ink dried on [Israeli minister] Shimon Peres's signature [to a Euro-Israeli
trade pact]," notes Brian Whitaker,
"than Israel began to cheat. To imagine
that this was due to a few bent officials
in the customs department would be a mistake:
cheating was built into the
system and it was carried out with the blessing
of the Israeli government ...
In 1997, as a result of complaints, the European
commission sent a delegation
to Israel to find out why Brazilian orange juice
arriving in Europe had been
certified as Israeli in order to qualify for
preferential rates. The problem, the
delegation concluded, went way beyond orange
juice: Israeli customs officials
simply could not be trusted. The problem was
so serious, their report said,
that 'the validity of ALL preferential certificates
issued by Israel, for ALL
products,' was in doubt." [WHITAKER, B.,
4-3-01]
An Israeli journalist noted the moral tenor of its
citizens in 2001, a world view intrinsic to Jewish identity throughout the
history of the Jewish diaspora and its traditional circumvention of surrounding
Gentile law:
"The Israeli temperament does not accept
rules of behavior and rejects
natural obedience to the law. The average Israeli
is afraid to feel like
a sucker, so scorns the rules and regulations
and regards the law as
an area of ever-expandable space in which to
maneuver, outwit, bypass,
and bribe, if necessary, in order to achieve
more." [BENZIMAN, U.,
5-27-01]
This theme was repeated again a week later by a Jewish
ethnic magazine, The Forward, which wondered if Israel's national "personality
trait" of subversion of civil law had roots in Jewish ethics in earlier
times in other countries:
"[There is] universal awareness that something
is definitely rotten in the state
of
Isael. This is, after all, a country in which bending the rules is said to
be a
national pasttime, cutting corners a way of
life and cheating the authorities
the proof of merit ... Sticklers for the
law are ridiculed and abused, where
anyone who works by the book is branded
a sap, a 'freier,' the worst insult
in modern Israeli lexicon ... Many people
believe Israeli laxity, which borders
on anarchy, is a national personality
trait that cannot be eradicated by laws
alone. Some trace the trait all the way
back to the historical Jewish Diaspora,
where Jews often found solace in bending
the rules imposed by the often
anti-Semitic authorities." [SHALEV,
C., 6-1-01]
The same year, Michael Finkel had this to say,
about another criminal subject, in the New York Times:
"Moshe lives in Israel, which happens to
be one of the more active nations in the
international
organ-trafficking market. The market, which is completely illegal, is
so complex and well organized that a single
transaction often crosses three
continents ... Yet in Israel and a handful
of other nations, including India, Turkey,
China, Russia and Iraq, organ sales are conducted
with only a scant nod toward
secrecy. In Israel, there is even tacit government
acceptance of the practice -- the
national health-insurance program covers part,
and sometimes all, of the cost of
brokered transplants. Insurance companies are
happy to pay, since the cost of
kidney surgery, even in the relatively short
run, is less than the cost of dialysis.
According to the coordinator of kidney transplantation
at Hadassah University
Hospital in Jerusalem, 60 of the 244 patients
currently receiving post-transplant
care purchased their new kidney from a stranger
-- just short of 25 percent of the|
patients at one of Israel's largest medical
centers participating in the organ business.
Relatively
few transplant operations, illegal or legal, take place in Israel. Every
proposed kidney transplant in the country between
two unrelated people is carefully
screened
for evidence of impropriety by a national committee. Therefore, almost
all of these illegal surgeries are performed
elsewhere, in nations where the laws are
easier to duck, including the United States.
Israel also does not contribute much
to the supply side of the equation. Organ donation
is extremely low; an estimated
3 percent of Israelis have signed donor cards
.... Paying for an organ has become
so routine in Israel that there have been instances
in which a patient has elected not
to accept the offer of a kidney donation from
a well-matched relative. 'Why risk
harm to a family member?' one patient told
me. Instead, these patients have decided
that purchasing a kidney from someone they've
never met -- in almost all cases
someone who is impoverished and living in a
foreign land -- is a far more palatable
option
... A few Americans do go abroad for transplants. A man named Jim
Cohan, who lives in Los Angeles, helps
organize such trips ... Cohan's price for
a kidney, he says, is $125,000 ... Only
a small portion of the money actually goes
to the person selling the organ -- as
little as $800 ... [There is a physician] who
has repeatedly been accused by the Israeli
media, including one of the
nation's leading daily papers, Haaretz,
of paricipating in hundreds of
overseas transplants, many of them in
Turkey. The [Israeli] surgeon's name
is Zaki Shapira." [FINKEL, M., 5-26-01]
In 2001, an Israeli newspaper, Ha'aretz,
announced that
"Romanian authorities are looking into
the possible links between Israeli
adoption agencies and an illegal global conspiracy
to sell organs for transplants.
The Romanian embassy in Israel has asked for,
and received from the Labor
and Social Affairs Ministry, a list of all
children born in Romania who have been
brought
to Israel for adoption in recent years. The Romanian officials are trying
to
ascertain if all such children arrived
in Israel with all their organs in their bodies."
[REZNICK,
R., 12-13-01]
In the midst of the growing 1980s Wall
Street scandal, the American Jewish Committee held a panel discussion on Jewish
ethics at a conference luncheon. The Palm Beach Jewish Journal quoted
Rabbi David Gordis as worrying that with all the negative publicity some might
see Jews in America broadly "as exploiters of the economy, parasites,
profiteers." [EHRLICH, p. 342] Judith Ehrlich and Barry Rehfeld note
that
"[Pointing] to the dangers to Jews
from the prominence of Jewish names
in current scandals and the imagery that
emerged from the visibility,
Rabbi Gordis urged that 'as a people
we must look more deeply into
the recesses of our traditions, our experiences,
our values.'"
[EHRLICH, p. 345]
The "crisis in Jewish ethics"
in America, epitomized in the Wall Street scandals, was of course nothing
new to the 1980s. Well-publicized scandals involving prominent and powerful
Jews surface fairly regularly. Gerald
Krefetz, for instance, noted a particularly nasty Jewish-based scandal in
the 1970s:
"Bathed in the merciless lights of Congressional hearings,
the witnesses
exposed to a national audience the morbid,
pathetic, and sordid
conditions of senior citizens in nursing
and old-age homes. It was as if
they had found that a Jew was in charge
of a concentration camp. The
whole proceedings were a
shanda (shame) of the first order, [with]
illegal
practices of a rabbi and other prominent
Jews on a captive population
unable to protect itself ... [Rabbi Bernard]
Bergman was more than a
symbolic figure of evil in the nursing
home industry -- he was the
industry ... [KREFETZ, p. 128] ... It became
clear that Bergman had
almost oligopolic powers, with interests
in close to a hundred different
homes across the nation. It also became clear that perhaps more than
any
other industry or service area, Jews dominated
the field, that many of the
operators were Jewish, including Bergman,
Eugene Hollander, and Albert
Schwartzberg ... Insensitivity, greed,
and human degradation were the
hallmark of a majority of the private facilities.
And that the chief
perpetrator of this terminal inhumanity
should be an orthodox rabbi and a
prominent Zionist was a mind-boggling reversal
of values ... [KREFETZ,
p.
129].... One illustration is perhaps typical of Bergman's operations,
his persistence, his political connections,
and his unabashed use of his
'Jewishness' that he paraded as if he were
its victim ... [KREFETZ, p.
131] ... The hypocritical Bergman was using
the lethal and explosive
charge of anti-Semitism as a foil for his
commercial maneuvers."
[KREFETZ, p. 132]
Bergman was prominent a number of Jewish
Orthodox institutions. "Reputed to be worth $100 million," notes
Alan Dershowitz, "he had held the presidency of numerous Jewish philanthropic,
religious, and educational institutions." [DERSHOWITZ, 1987, p. 126]
He was "one of the richest and most powerful orthodox Jews in the world,"
notes Robert Friedman, "with close ties to Israel's National Religious
Party. He made a fortune from a national conglomerate of Medicaid nursing
homes, where infirm patients were left unattended to soak in their own urine
... No doubt Bergman learned his business ethics from his parents who were
not only bootleggers, but also were convicted in 1941 of smuggling eight kilos
of heroin from France in the bindings of Hebrew prayer books." [FRIEDMAN,
False, p. 17] "In my lifetime in this city," declared
another Jewish critic in the Village Voice, "I have never encountered
anyone as rotten as Bernard Bergman." Within three months, 62 articles
about Bergman were published in the New York Times alone. [DERSHOWITZ,
1987, p. 119]
Sensationally, the judge in the Bergman case,
Marvin Frankel, sentenced the rabbi to a term of only four months, a decision
that elicited outrage from all corners. A Jewish Congressman, notes Alan Dershowitz,
"warned that 'there will be anti-Semitism flowing from the fact' that
the judge and defendant were both Jewish." [DERSHOWITZ, p. 120]
Special State Nursing Home Prosecutor Charles Hynes declared the punishment
"insubstantial" and that it was "special justice for the privileged."
[DERSHOWITZ, p. 120] A second judge, Aloysius Melia, reviewed the case and
added a year to Bergman's sentence.
In 1993, when prominent non-Jewish American
lawyer Michael Tygar took up the U.S. citizenship case of John Demjanjuk --
after his new client had been exonerated in Israel of being the Nazi operative
Ivan the Terrible -- a Jewish faculty member at the Hofstra Law School, Monroe
Freedman, publicly rebuked Demjanjuk's new lawyer in a well-known law journal:
"Is John Demjanjuk the kind of client to whom you want to dedicate your
training, your knowledge, your extraordinary skills?" [MARGOLICK, p.
B18] Tigar's response to Freedman's pained moral query was an emphatic yes.
Demjanjuk, after all, had never been proven to be guilty of any crime, and
he had been cleared of the charge of being Ivan the Terrible. And Monroe Freedman?
Freedman had been one of the lawyers for the aforementioned Rabbi Bergman
who was found guilty of particularly
heinous crimes against the helpless elderly, a client who was widely known
as "the meanest man in New York." [MARGOLICK, p. B18]
Other scandals in the 1970s included that
which caused non-Jewish actor Cliff Robertson to be blacklisted for four years
[MCCLINTICK, p. 518] by the largely Jewish Hollywood crowd [see forthcoming
media section] for reporting a forgery by the president of
Columbia Pictures, David Begelman. The investigation of Begelman ultimately
led to an embezzlement scandal and press investigations into the whole unethical
base of the film business itself. Robertson
attracted animosity also because of his public demands for further police
investigation into something that he believed to be merely the tip of an iceberg,
especially after Begelman was tentatively removed from his post at
Columbia,
but reinstated. "The entire entertainment community had been shaken [by
the scandal]," noted David McClintick in 1982, "Four of the seven
major studios -- Columbia,
Fox,
MGM, and United Artists
-- had changed drastically." [MCCLINTICK, p. 518] As the scandal attracted increased media attention,
the Los Angeles Herald Examiner's entertainment columnist noted the
essence of the situation: "The Washington Post apparently is incensed
because the Hollywood trade press never used the word 'embezzlement' [in referring
to the Begelman scandal]. There's a reason for that. Embezzlement is not a
sin in Hollywood. It's a way of life." [MCCLINTICK, p. 354]
(Begelman had once been an agent for Judy Garland who believed that
he had stolen $200,000 from her). [SHIPMAN, 1993, p. 448]
In 1977, Jewish author Michael Hellerman
had his autobiography published. It was entitled "Wall Street Swindler."
Criminal associates noted that he was "the master [swindler] of them
all" and "when it comes to the big swindle, Hellerman is a genius.
He makes us all look like pikers." [HELLERMAN/RENNER, 1977, p. viii]
Hellerman grew up "in the bosom of a deeply religious affluent family
in the heart of suburban Long Island" but was "driven by an almost
insatiable desire for riches and luxury." [HELLERMAN/RENNER, 1977, p.
ix] "As a thief," says Thomas Renner,
"Hellerman was the very personification
of the white-collar criminal.
... Like the men of the Mafia he often dealt
with and cheated, Hellerman
could and did leave his victims stripped
of their dignity, financially
destitute, and psychologically traumatized."
[HELLERMAN/RENNER,
1977,p. ix]
In the political realm, in 1977 the Jewish
governor of Maryland, Marvin Mandel, and four others were "convicted
of conspiracy to have the Governor influence race track legislation in return
for $380,000 in bribes." [AYRES, B.D., p. A1] Mandel served 19 months
of a four year prison sentence. One of those convicted with him, Irwin Kovens,
"was a major sponsor of Mr. Mandel's political career. He helped raise
millions of dollars for Mr. Mandel's campaign for governor in 1970 and 1974."
[NYT, 11-2-89, p. B21] [BALTIMORE JEWISH TIMES, 1-23-98, p. 8]
Shortly thereafter, in 1982, another Maryland
Jewish politician was sentenced to prison. Baltimore City Council President
Walter Orlinsky pleaded guilty to "one count of extortion ... [He also]
conceded that the Government could prove other charges against him."
[NYT, 9-23-82, p. A24] [BALTMORE JEWISH TIMES, 1-23-98, p. 8] He was originally
indicted on 12 counts of extortion and mail fraud.
In 1999, Donald Warshaw, also Jewish, and
Miami's powerful city manager, was fired after nearly two years in the position.
He faced a "federal indictment charging he misspent public pension and
charity funds on luxurious items." He was accused of "spending $86,563
in pension and charity funds on trips, designer clothes, $21,276 in hockey
tickets and other things from 1993 to 1995 while serving as police commissioner
... Warshaw's friend, accountant Ronald Stern, as named as an unindicted co-conspirator.
He killed himself in July 1999 after allegations surfaced that he embezzled
$500,000 from the pension fund while serving as its auditor and investment
adviser. He was also the charity's accountant." [WILSON, C., 10-11-2000]
In 1993, Dade County Commissioner (Miami, Florida) Joe Gersten, also
Jewish, was accused of smoking cocaine with a prostitute in a Miami drug den
and subsequently fled to Australia. [DE FEDE, J., 3-16-94]
In 1995, Joe Waldholtz, the Jewish husband
of non-Jewish Utah Congressman Enid Greene was exposed in a scandal that sent
him to prison for 21 months and effectively destroyed his wife's political
career. Waldholtz, noted Salt Lake City's Deseret News, "lied
and bullied his way to notoriety ... during a scandal that involved Waldholtz's
ex-wife, then Congresswoman Enid Greene, check kiting, illegal money transfers,
federal election law violations, drug abuse and bizarre behavior ... [He was]
convicted of embezzling nearly $4 million from his former father-in-law and
illegally funneling most of it into Greene's 1994 election campaign [which
she won]." [DILLON, L., 5-29-99, p. A1] Greene, pleading complete innocence,
divorced him soon after the scandal.
In
Florida, in 1999, State Senator Al Gutman was sentenced to two years in prison
for "conspiracy in a Medicare fraud case." Gutman and his wife Marci
"secretly owned companies that billed Medicare for health care services
that were not performed." He "collected at least $2 million from
fraudulent billings while he served in the Legislature." [FIELDS, T.,
10-20-99; FIELDS, T., 10-26-99] In 2000, Paul Adler, a "key"
Hillary Clinton political adviser (particularly to the Jewish community) and
head of the Democratic Party in New York's Rockland County, was arrested on
charges of "public corruption, fraud, extortion, and other charges linked
to his real estate transactions." [FORWARD, 9-15-00, p. 15] In 2002,
Edward Mezvinsky, a former (Jewish) Congressman from Iowa, "was indicted
on 66 counts of fraud and related charges for allegely bilking more than $10
million." Those signing letters trying to get him off easy were Edward
Shils (a University of Pennsylvania professor, Jonathan Yarowsky, a former
genral counsel to the U.S. House Judiciary Committee, and Rabbi Gerald Wolpe.
[MOORE, T., 1-9-02]
In the 1960s, a former Jewish socialist activist
turned rich playboy, Bernie Cornfeld, was probably that decade's best known
financial swindler, defrauding 250,000 investors in his
Investors Overseas Service (IOS) mutual funds company. [NYT, 3-1-95,
p. A10] With a million customers in
26 countries around the world, and employing 20,000 employees, Cornfeld, amassing
a personal fortune of over $100 million. He promised millions to Israeli causes
and started a mutual fund system at the Tel Aviv stock exchange. "Stories
of shady dealings, mismanagement, plain stupidity, what some lawyers were
calling outright fraud, were filling the financial pages of newspapers and
magazines all over the world," noted one of his former associates, Bert
Cantor. [CANTOR, p. 8] Cantor also
had this to say about who ran the corrupt
IOS business:
"A minor
IOS executive in evaluating the company's personnel practices
remarked that status in the [company's]
hierarchy could be measured in
four categories: 1) Nice Jewish boys from
Brooklyn who belonged to
Bernie's Boy Scout troop, 2) Nice Jewish
boys from Brooklyn, 3) Nice
Jewish boys, 4) Everyone else." [CANTOR,
p. 7-8]
In 1975 Cornfeld was convicted for telephone
fraud. In 1990, Forbes magazine reported that the IRS claimed Cornfeld
still owed $15 million in taxes going back thirty years. [NYT, 3-1-95]
Another (extremely) noteworthy Jewish fraud of the Cornfeld era was that of
Stanley Goldblum. In the 1970s he was sentenced to prison for the 'biggest
corporate fraud in United States history," "one of history's greatest
hoaxes." His Equity Funding Corporation of America
sold $2 billion worth of fake insurance policies --64,000 of them -- to
other insurers. In later years he
surfaced as a criminal again, arrested in 1999 "in a scheme to operate a
number of medical clinics that allegedly bilked the workers' compensation
system." [NY TIMES, 3-26-75; GAW, p. C1] [DIRKS/GROSS, p. 3-4]
Also in the 1960s, Australia had a memorable
Jewish scandal. Stanley Korman, notes Jewish commentator Leon Gettler,
"shocked and angered the White Anglo-Saxon
Protestant pillars of the establishment
back in the 60's. Sure, Korman was a crook.
They hated him and sent him and sent
him to jail for fleecing his shareholders. But
they hated him even more because
he was Jewish." [GETTLER, L, 2000, p. 27]
More recently, much-publicized Jewish crime
figures include the sensationally ostentatious penny-pincher and tax evader,
Leona Helmsley (Ms. Helmseley, noted the Economist, "had long
been labeled one of the villains of modern America. A witness at her trial
testified that she had once said 'only the little people pay taxes' and the
little people remembered." [ECONOMIST, 4-25-92, p. 28]
"Helmsley," noted Reuters, "was found guilty
... of writing off a wide variety of personal items as business expenses,
including bras, shoes and dresses, a million dollar pool cover that doubled
as a dance floor, and a $130,000 stereo system." [APPELSON])
Another big scandal of the 1980s focused
on the Hollywood "madam” trafficker of prostitutes to the stars, Heidi
Fleiss, also Jewish and the daughter of a prominent doctor. "Like Begelman," noted the Los
Angeles Times, "the new [Fleiss] scandal stands as a symbol of corruption
in Hollywood." [ELLER, p. B8] Fleiss,
noted Entertainment Weekly, "has given two of the studio chieftains
-- executive vice president Michael Nathanson and executive vice president
of production Barry Josephson [both Jewish] -- leading roles in the ever-widening
Hollywood sex scandal." [KENNEDY, 8-20-93] "What is obvious is that the potential
scandal," said the New York Times, ".... involved heavy use
of cocaine and other drugs ... One executive, Michael Nathanson, president
of production at Columbia Pictures,
denied on Tuesday, through his lawyer, Howard Weitzman, that he had used film-development
money to procure prostitutes..." [WEINRAUB, p A4] After Nathanson's denial
of involvement in the ring, Ivan Nagy (Fleiss's boyfriend, also arrested for
soliciting call girls) leaked a copy of her "black book" to the
New York Daily News; it included Nathanson's phone number.
Fleiss was eventually sentenced to prison
in 1993 for attempted pandering, tax evasion, and money laundering. She was
once quoted as saying that the aforementioned Bernie Cornfeld "was the
only real boyfriend in my life." [WASH POST, 3-2-95, p. B4] Fleiss' father, noted the Los Angeles Times,
"a well-known Los Feliz pediatrician who recently examined the newborn
daughter of pop star Madonna, was previously sentenced to three years' probation,
625 hours of community service and fined $50,000 for conspiring to hide profits
from his daughter's call girl ring." [MCDONNELL, p. B1, B3]
A kindred soul in professional ethics to
Dr. Heiss in the late 1960s and early 1970s was Dr. Max Jacobson. Nicknamed
"Dr. Feelgood," his license to practice was eventually suspended
for routinely giving amphetamine injections into a large number of celebrities.
[SEAMAN, p. 386-388] Jacobson and
another Jewish doctor, Lee Siegel, are cited by one author as famous "drug
pushers" for Hollywood studios. There were "stories," notes
Dennis McDougal, "about physicians on the TV or movie set who injected
stars with 'vitamins' to keep them performing ... It became clear after a
while that [movie star] agents did not interfere with the addictions that
were killing Allen Ladd, Montgomery Cliff, and Judy Garland." [MCDOUGAL,
p. 259] Dr. Robert Feder, another Hollywood physician, "gave amphetamines,
or uppers, to some of his patients if they needed to be 'on' for a particular
performance or day." In the case of drug-addicted actor John Belushi,
Feder fed him uppers through Belushi's agent, Bernie Brillstein [WOODWARD,
1984, p. 244-245]
(Among the great medical fraudsters of the early 20th
century was Albert Abrams. Arthur Cramp of the American Medical Association
once said that Abrams "easily ranked as the dean of twentieth century
[medical] charlatans." Abrams used a variety of invented machines, often
based on the radio, that were supposed to diagnose, and even cure, disease.)
[YOUNG, J., 1967, p. 138-139]
Doctor Melvyn Rosenstein is also a noteworthy
surgeon. Self-described as the "world's leading authority on penile surgery,"
he spent $250,000 a month in advertising across the country in an effort to
entice men to have surgical penis elongation. He reportedly netted $30 million
in this practice between 1991 and 1995. By then, however, dozens of men (over
40 in southern California alone) had surmounted their embarrassment to come
forward to sue him for malpractice, for misinformation, and for deforming
their sexual organs. A California Medical Board spokesman declared that those
who had come forward to sue Rosenstein were "the tip of the iceberg."
In 1996 Rosenstein was forbidden to further practice his lucrative trade.
[HOLDING, R., 4-24-95, p. A9; SHUIT, D., 3-5-96, p. B1] (In the women's world
of cosmetic surgery, socialite Joyce Wildenstein -- one of the heirs to the
opulent Jewish Wildenstein art gallery dynasty -- has become the much lambasted
symbol in the New York media for those who have had face lifts too many times).
Moving along in the generic fraud department,
up north, in Ontario, Canada, in 1991 Jewish lawyer Herman Melnitzer parked
his Jaguar XJS coupe and "pleaded guilty to one of Canada's biggest cases
of fraud." [TYLER, p. A1] He was charged with 43 cases of "forgery,
fraud and attempted fraud relating to $1 billion worth of phony stock certificates
he used to trick banks into giving him $43 million in lines of credit, $12.3
million which was spent." [TYLER, p. A1]
Also in the 1990s, certainly a rival to
the claim of "Canada's biggest fraud,” the
Bre-X gold mining scam swept the world's imagination in what the Ottawa
Citizen eventually called a "monumental swindle." It began when a small company (co-owned by
David Walsh, Michael de Guzman, and John Felderhof) in Calgary, Canada, claimed
to have discovered a huge new source of gold in Indonesia. Soon enough, the
head (Peter Munk; also Jewish) of Canada's largest gold producer (Barrick Gold Corporation) was a player
in the story. "In the heat of negotiations between [Munk's company] and
Bre-X," notes the Citizen,
"one of Munk's executives was reluctant
to talk business with his boss
on Yom Kippur, an important Jewish holiday
when Munk would be
observing the Day of Atonement. Munk
dismissed his vice-president's
concerns. 'This is more important to
me than anything. I know it. God
knows it. And there's no point in trying
to fool anyone about it.'"
[SHER, p. E4]
While investors clamored to join the group
that promised enough gold to rival the gross national product of the nearby
Philippines, nothing substantial was ever found.
Steve Gaines notes the case of Jewish
mogul Barry Trupin and his Rothschild Reserve International company:
"What made Trupin really rich was his 1976
discovery of a tax loophole
from which he could spin a personal fortune
of $300 million, a 'money-
making machine,' he called it. Trupin found
that a company could earn
huge tax deductions by leasing computers instead
of buying them. Almost
every aspect of the transaction was deductible
... Although perfectly legal,
the dodge was a little cloudy. He began to proclaim
himself the 'master of
corporate veil.'" [GAINES, S., 1998, p.
230]
In 1997 Trupin "was indicted by the U.
S. government as a tax cheat for the avoidance of $6.6 million in taxes."
He was also "convicted in federal district court of receiving, possessing,
and selling a stolen painting [by Marc Chagall]." Also, "thirty-nine
investors in Trupin's various companies were suing him" and the FBI "launched
an investigation into Trupin's interest in a Tustin, California, bank in which
he had bought a 62 percent controlling interest and had introduced a number
of loans that had to be written off as bad." [GAINES, S., 1998, p. 270]
In 1997, Arnie Zaler was arrested in Arizona
for fraud totaling millions of dollars, swindling as many as 60 people.
Earlier, he had been so well-established in the Phoenix community that
he was considered a strong Democratic candidate for Congress. The Arizona
Republic notes that, when financial troubles began to hit him in 1994,
"Zaler dropped out of sight. Private
investigators hired by investors
discovered that he had been laying low
in Phoenix and Denver, and
occasionally slipping out of the country
to spend time in Israel. Zaler
had dual citizenship in the United States
and Israel. They even learned
that Zaler made a large donation to a new
temple outside Tel Aviv
that was named after him." [MILLER,
E., p. A1]
In 1992, Larry Douglas, a well-known Jewish
New York City political activist in Democratic mayoral and Presidential campaigns,
"disappeared." The New
York Times noted that a city councilman and close friend of Douglas, Robert
J. Dryfoos
"was embroiled in a Federal tax-evasion
scandal, and rumors flew that
Mr. Douglas had his own tax problems.
He took a plane to Israel and
didn't come back until the cases had been
dropped." [TOY, Sec1, p.
27]
As noted above, if threatened with exposure
and arrest in America, an emergency bailout for Israeli, American-Jewish,
or any other international Jewish criminals throughout the world is Israel's
Law of Return, in which Jews can essentially rush to Israel for sanctuary.
Israeli law officially forbids the extradition of any Israeli citizen
for crimes committed in another country, and any Jew on earth may acquire
-- by simple birthright, and an application -- Israeli citizenship. Many American
Jews do indeed hold both American and Israeli citizenships. This curious convenience
garnered considerable outrage and publicity in the 1997 case of American-born
Samuel Sheinbein -- the son of (technically) an Israeli citizen -- who was
accused of murder. The teenager fled to Israel and sought refuge under the
"law of return" for worldwide Jewry.
Sheinbein's accused crime was particularly
heinous: he and another Jewish youth (old friends from the Charles E. Smith
Jewish Day School) were charged with murder, including sawing off the Hispanic
victim's arms and legs with a chainsaw, and attempting to burn the body. The
other teenager accused in the case, Adam Needle, was arrested and jailed;
he subsequently committed suicide. Sheinbein, meanwhile, had hurried off to
Israel, a place he was visiting for the first time in his life.
Sheinbein's plan of escape rested on his
father, Shlomo, who had immigrated to America from Israel with his family
in 1950, at the age of 6. This entitled him to perpetual Israeli citizenship.
He eventually became a lawyer and was so "American" that he was
even employed by the Pentagon. [BALTIMORE SUN, 10-11-97, p. 23] Ironically, Shlomo's own father had been murdered
in Tel Aviv in 1982. The London Guardian notes that
"He was shot in the head at close range
in his office, from where he was
suspected of organizing illegal money
transfers between Israel and the
United States. He left property valued
at pounds 44 million."
[BORGER, p. 16]
The American government formally requested
from Israel the extradition of Samuel Sheinbein to be tried for murder. As
far the Jewish state was concerned, however, if Sheinbein's father was indeed
an Israeli citizen, his son must also be considered a citizen -- no matter
that he had never been to Israel -- and therefore immune from extradition
to America.
In October 1997, the Israeli government
formally refused the American extradition request. "He cannot be extradited,"
declared an Israeli Justice Ministry spokesperson, "He was an Israeli
citizen when the crime was committed." [ASSOC. PRESS, p. 62]
This decision elicited an extremely unusual storm of outrage and indignation
within the U.S. Congress. Shortly thereafter, members of that legislative
body announced that it was postponing a scheduled transfer of $180 million
in U.S. aid to Israel. Newly attentive, Israel later suggested a Sheinbein
trial in Israel, and eventually a further compromise: Sheinbein could be tried
in America, but would serve his prison term in Israel.
In May 1998, U.S. prosecutors rejected
such compromise proposals. As Agence France Presse noted:
"Justice officials in Maryland had
expressed concern that Sheinbein
would be released early if he served a
term in Israel." [AFP, 5-3-98,
ONLINE]
Meanwhile, all the bad press and economic
Congressional action forced some major American Jewish agencies to take extremely
unusual positions on the case, that is to say, to publicly criticize Israel.
"Noting the victim was a Hispanic youth," noted the Jerusalem
Post, "the Anti-Defamation League of B'nai B'rith has warned that
failure [to extradite Sheinbein] will have 'consequences which transcend this
case alone.'" [J.P., 10-9-97, p. 8] Even the Executive Director of the American
Jewish Congress, Phil Baum, announced that "Sheinbein's connection to
Israel is so patently tenuous as to verge on the fraudulent." [PR NEWSWIRE,
10-9-97, ONLINE] "Regardless
of how it may be presented,” the Jerusalem Post editorialized, "a
failure to expedite will be interpreted by many as Israel's willingness to
shield people accused of committing heinous crimes." [J.P., 10-9-97,
p. 8] "[The] extradition law is part of Israeli law, end of story,"
noted Stuart Schoffman in the Washington Post, "But alongside
this flat formulation runs an age-old protective instinct: You don't surrender
a Jew to the gentiles." [SCHOFFMAN, p. B1]
Israel eventually decided that Samuel Sheinbein
was not a citizen after all, because of a small technicality: Israel's Law of Return was suddenly noted to
have been created two years after Sheinbein's father left Israel, and therefore
not applicable to him and his son. Nonetheless, by a 3-2 vote, in February
1999 the Israeli Supreme Court ruled finally that Sheinbein could claim Israeli
citizenship and could not be extradited. "I am disappointed in Israel,"
said the Maryland lawyer, Douglas Ganser (who is also Jewish), set to prosecute
the case in America, "because the [Israeli] ruling didn't make sense.
It's not even a close call. It looks bad for the Jewish people." [BESSER,
J., 3-5-99, p. 10]
At the same time as the Sheinbein fiasco,
the United States government was also trying to extradite Chaim Berger from
Israel to stand trial in America too. While the Jewish state was deciding
what to do with this case, in May 1999, "despite objections by United
States law-enforcement officials, an Israeli court ... approved an unusual
$3 million bail agreement" for this founder of a Hasidic community in
New York. Under the "personal bond" of two Israeli rabbis and the
governments housing minister, Berger was allowed complete freedom from jail
in mornings and evenings. "U.S. officials warned Israel against freeing
Berger, contending that he fled New York 18 months ago knowing he would be
indicted for his part in stealing $20 million in federal and state education
and housing grants and subsidies. Four other co-defendants were also indicted
in the U.S. -- two of them were yet in hiding. A rabbi in Berger's community
complained that "the [Hasidic] community's sense is the government's
pound of flesh has been exacted and there's no need to drag a 73-year old
Holocaust survivor into this." [GREENBERG, J.J., 3-12-99, p. 12]
In the 1980s, France had its own major
run-in with Israel's shielding of international Jewish criminals when Israel's
Ministry of Justice delayed for years the extradition of a French Jew, William
Nakash. Nakash had been convicted there for murder. "French officials,"
noted Reuters, "insist that [Nakash was involved in] a gangland
killing between rival pimps." [TAYLOR, ONLINE] The Jewish Week
noted the mood in Israel, however, about France's extradition request:
"Nakash, who claims to be newly
Orthodox, has been passionately
defended by Orthodox Jews and right-wing
nationalists. They have
depicted him a hero who killed an Arab in self-defense, a 'nationalistic'
act forced upon him by unbearable harassment
by Jew-hating Arabs,
abetted by a climate of rampant anti-Semitism
in [the French town of]
Besancon." [EYTAN, p. 3, 34]
A former Deputy Mayor of Besancon, a Jewish
lawyer named Jacques Lorach, responded by saying that "Never in my life,
and certainly not in my political career, have I heard or been told an anti-Semitic
remark." The town even has "one of the largest and most impressive
memorials to the Holocaust outside Yad Vashem in Jerusalem and it was financed
exclusively by the city and regional authorities." [EYTAN, p. 3, 34]
Nakash was finally only considered eligible
for extradition when he proved to be a criminal problem in his new home. As
the Chicago Tribune noted,
"In 1985, Nakash, by then an Israeli
citizen, was arrested near Jerusalem
for plotting to rob a senior Christian
prelate of 60 bars of gold and $2
million in cash. When Israeli police realized
Nakash was the same man
sentenced for the Besancon murder, two
courts, including Israel's
Supreme Court, ruled that he was extraditable
to France ... [But] mindful
of the political damage [in Israel] that
Nakash's extradition could cause,
Justice Minister Avraham Sharir, an astute
Likud politician, ignored the
opinion of the Courts and last week barred
Nakash's extradition."
[BRODER, p. C1]
In 2000, 124 people from the Paris Sentier
district were put on trial, accused of embezzling $77 million from French
banks. "The Sentier area of Paris [is the] center of the Jewish-run garment
industry." [WEBSTER, 12-7-89] "The Sentier garment district in Paris
.. is majority-owned by French Jews." [AGENCE FRANCE PRESSE, 7-16-99]
The Sentier district "is renowned as the center for the rag-trade and
a base for petty criminals." [GRAHAM, R., 2-20-01] "Thirteen of
the accused, Israeli nationals or holders of dual Franco-Israeli nationality,"
noted the Jerusalem Post, "have fled to Israel." Struggling
to get the Jewish state to extradite the accused criminals for trial, French
prosecutor Francois Franchi complaned that "Israel has put itself beyond
the pale of the international community. Its banking system encourages actions
which explain what happened in this case."
[LEVEQUE, 2-25-01, p.
4]
"Investigators [into the Sentier affair],"
noted Agence France Presse, "also uncovered money laundering networks
with Austria, Belgium, and Israel ... most of the defendants are accused of
being part of a criminal network." [AGENCE FRANCE PRESSE, 2-20-01] And
the implications of the Sentier scandal to the Jewish community at-large?
"Leaders of France's 750,000-strong Jewish community," noted the
Jerusalem Post, "have privately fretted for months about possible
effects on public opinion of the trial, which opened in a courtroom built
specially to accommodate the mass of defendants and lawyers." [LEVEQUE,
2-25-01, p. 4]
Meanwhile, France was also trying to extradite
Arkadi Gaydamak (Gaidamek), "a billionaire industrialist," from
Israel for trial on charges of illegal arms trading. Gaydamak has Israeli,
Canadian, French, and Angola passports. Newspaper reports noted that this
mogul "had close ties with Danny Yatom, the security adviser to caretaker
Israeli prime minister Ehud Barak." Gaydamak "called attacks on
his character as 'aimed at a Jew and a Russian who succeeded in business.'"
[AGENCE FRANCE PRESSE, 12-29-00]
Also in France, in 2002 "three of Israel's
five leading banks [were] under investigation by French authorities as part
of a larger, ongoing probe of a money-laundering network between France and
Israel. The network used Jewish charitable institutions and cultural institutions
based in France to process illegally-acquired money ... In November French
officals said there were some 80 suspects in the case, including six rabbis.
Six people are reportedly already in jail." [BERGER/STUB, 12-30-01]
Elsewhere, in 1993 Poland requested the
extradition of two Polish Jews, Boguslaw Bagsik and Andrzej Gasiorowski, owners
of the Art-B Trading Company (which
owned 200 other companies), who had fled to Israel in 1991. They were accused,
noted Reuters, "of stealing ... $310 million in the country's
biggest financial scandal." [REUTERS, 5-20-92] Bagsik was known to have
Polish, German, and Israeli citizenship. [REUTERS, 8-16-91, p. 16] Israeli authorities conceded that at least
$85 million had been transferred by Bagsik to the Jewish state. An Israeli
newspaper reported that Gasiorowski complained of discrimination in Poland
by "people feeling anti-Semitic sentiments." [POLISH NEWS BULLETIN,
8-91, p. 1] Bagsik was captured in
Switzerland the next year and faced 15 years in a Polish jail. Israel refused
the extradition of Gasiorowski. [PAP NEWSWIRE, 1-31-97]
In 1994, another newsworthy Polish Jew,
Solomon Morel, fled to Israel when Polish authorities sought to question him
about his role in "possible postwar crimes against German civilians."
[NEWSWEEK, 1-3-94, p. 6] Israel refused to return him to Poland. Likewise,
in 2000, the Israeli government refused to extradite Nahman Dushanski back
to Lithuania where he is wanted for taking "part in the murder of Lithuanian
prisoners during Soviet occupation in 1941." Lithuania also requested
the extradition of Simion Borkov from Israel on similar charges. [MELMAN,
2-10-2999]
In 1992, yet another Jewish predator of the
embryonic Polish capitalist state, David Bogatin, made international news
for his corrupt bank (with 14 offices) in Poland. "Last month,"
noted the Montreal Gazette,
"a muckraking journalist discovered
Bogatin's First Commercial Bank
was founded on fraud. Bogatin was unmasked
as a con man -- alleged
to have connections with United States and
Russian criminal syndicates --
who fled the United States after conviction
on a tax evasion charge."
[MCKINSEY, K, 2-13-92, p. A12]
Bogatin, originally from the Soviet Union,
had emigrated to the United States in 1977. Starting out as cab driver, by
1985 he was involved in shady business dealings, the Mafia, and major tax
evasion. By 1987, he was arrested in Vienna for "carrying counterfeit
securities." Bogatin, also noted as "one of [America's] biggest
gasoline bootleggers," was eventually extradited to the United States
and sentenced to prison for tax evasion. [LEGAL INTELLIGENCER, 5-15-92, p.
5]
From the Ukraine, in 1994 the Jewish acting
head of the Ukrainian cabinet, Yefim Zvyagilsky, "was faced with charges
of embezzlement of state property [worth $25 million]." [STETSYURA]
After fleeing to Israel, the Jewish state denied the Ukrainian request
for his extradition. "Ukrainian officials," noted Reuters,
"say Zvyagilsky, a Jew by origin, acquired an Israeli passport during
his two and a half years in Israel but he denies this ... Some top [Ukrainian]
government officials, including Foreign Minister Hennady Vdovenko have suggested
that Ukrainian authorities might have to think twice before appointing Jews
to senior jobs in the future." [REUTERS, 2-12-97]
In April 1997 the Jewish Telegraphic
Agency reported an intriguing banking story from Russia:
"The head of a large Russian bank
who is also a prominent member of
the country's Jewish community has been
detained in Moscow on
suspicion of embezzling more than $120
million ... Arkady Angelevich,
who heads Moscow's
Montazhspetsbank and is a member of the
presidium of the Russian Jewish Congress,
has been in prison since
last week ... Angelevich was arrested
on the way to the airport, where
he was planning to leave for Israel,
according to news reports."
[KRICHEVSKY, 4-25-97, p. 6]
In 2001, Agence France Presse reported
that
"Spain's top criminal court on Monday turned
down a request by Russian
media magnate and Israeli-passport holder Vladimir
Gusinsky to travel
to Israel to cast his vote in elections ...
[Gusinsky faces] extradition to
Russia to face fraud charges." [AGENCE
FRANCE PRESSE, 2-5-01]
Gusinsky is the head of the Russian Jewish
Congress. Within two weeks, another prominent Russian Jew made the criminal
news:
"The arrest of the well-known St. Petersburg
businessman and vice-president
of the Russian Jewish Congress [Mikhail Mirilashvili]
has caused outrage
in some political circles in Israel." [ST.
PETERSBURG TIMES, 2-16-01]
Mirilashvili also has both Russian and Israeli
citizenship.
(Another Eastern European Jewish mogul, Vadim Rabinovich,
is founder and president of the All-Ukrainian Jewish Congress. He too
has known "ties to Russian organized crime.") [BONNER, R., 6-12-01]
Even in war-torn Serbia, in 1994 the (Jewish)
Forward noted that there were fears of an anti-Semitic backlash when
Jews locally masterminded
"a billion dollar embezzlement racket.
The scandal, a classic pyramid
scheme, involved two banks,
Yugoskandic and
Dafiment ... Both
banks claimed close links to Israel,
and thousands queued over their
money. Then the banks collapsed. The
owner of Yugoskandic
absconded to Israel with his investment
money..." [RUBIN, E, p. 1]
This owner, Jezda Yasiljevic, notes the
London Sunday Times, "fled to Israel, where he threatened to fund
hit squads against politicians who turned against him." [BRANSON] In 1992, Vasiljevic had purchased an island
off the Montenegrin coast, "once the playground of Richard Burton and
Sophia Loren," for hundreds of millions of dollars. [BRANSON] The next year, notes the Christian Science
Monitor,
"tens of thousands of panicked Belgraders
besieged a soccer stadium
yesterday where numbered tickets were
being given to withdraw money
from a private bank. The rush followed
the collapse last week of another
bank whose owner fled to Israel, leaving
a tangle that threatened to bring
down the whole economy of the remaining
Yugoslavia." [BRANSON,
p. 3]
"Vasiljevic's bank," said Time,
"ran a classic Ponzi scheme, using new deposits to pay the interest on
old ones." [GREENWALD, p. 58]
A sampling of other newsworthy items about
Jews committing crimes throughout the world and then hurrying to Israel for
refuge include:
*
Members of the Jewish Defense League. Between 1981 and 1987,
the FBI blamed Jewish groups for
24 terrorist acts in the U.S. -- 17
of them were believed to be perpetrated
by the JDL. [THORNTON,
p. A19] The Washington Post
reported that "the Israeli government
has failed to cooperate with a U.S.
investigation of Jewish Defense
League (JDL) members and associates
suspected in a series of
bombings and terrorist incidents
in this country, according to an
internal Federal Bureau of Investigations
memo. The memo ... said
several key suspects in the investigation
have fled to Israel."
[THORNTON, p. A19] In 1992, seven years after the murder by
bombing of Arab-American Alex Odeh,
the president of the Arab-
American Anti-Discrimination Organization
Albert Mokhiber,
complained that "the American
government is asking to interrogate
American citizens [in Israel] on
a crime that occurred in America
and the Israeli government is preventing
it." [HEDGES, p. A3]
Among others,
William Ross, an important philanthropist to the
Meir Kahane and his Kach Party, carried
out a mail bomb murder
"not for politics but for his
own profit." [TUGEND, 8-19-88, p. 8]
*
Gordon Wolfson. In 1985 he was convicted of 34 counts of mail
fraud after cheating investors out
of $50 million in a real estate scam.
Five days before Wolfson's sentencing,
he paid the Israeli
vice-consul in Miami,
David Mordechai, $125,000 to arrange to
get him on an El Al flight to Israel.
Mordechai was sentenced two
years later to six years in U.S.
prison for aiding the criminal.
"[Mordechai] did something
that every Jew hopes to do once
in his lifetime," explained
his lawyer, "that is help a Jew go to
Israel." [UPI, 1-10-87]
*
Eddie Antar. Head of a chain of electronics stores called Crazy
Eddie, Antar escaped to Israel and lived under the name of "David
Cohen" after a $63 million securities
fraud judgment against him by
the Securities Exchange Commission.
[UPI, 6-24-92, ONLINE]
*
Dov and Ayala Engel. The two fled to Israel from Brooklyn
in 1998
after swindling American banks out
of $100 million through their
company Kent International.
(Although
eventually brought to justice
in
the U.S., in 2001 the New York Post noted that Dov "plans to cut
his
11-year [prison] sentence to less than half by serving time in the
Jewish
state ... Under a 1999 extradition-treaty amendment, he can
serve
his sentence in that country [Israel], where fraud charges carry
a
maximum of five years' imprisonment." [SMITH, K., 12-4-01]
*
Michael Vishedsky and Shlomo Wishedsky. These two owners
of a Brooklyn shoe store fled to
Israel after committing "the largest
Medicaid fraud ever uncovered in
New York state, possibly the
country." [UPI, 4-16-96]
*
Michael Schiff. In 1995, known by Chicago-area police authorities
to have both American and Israeli
citizenship, he raped and
sodomized a woman who he was interviewing
for a (non-existent)
job as a nanny. He then fled to Israel.
"Under terms of a U.S.-Israeli
agreement," noted the
Chicago
Tribune, "the Tel Aviv government
will not extradite one of its own
citizens." [HILKEVITCH, p. 3, N]
*
Richard Minns -- Minns, is "the former jet-setting health
club
owner who was implicated but never
charged in connection with the
shooting of his former lover, in
October 1980." She sued him for
the injuries suffered and won $42.6
million in 1991. Minns by
now was in Israel: [He] never showed
up in court for depositions
[in Texas] in connection with the
suit ... [He] lived in Israel at the
time of the trial ... [His lawyer
son] says his father disinherited him
... because he married a woman who
was not Jewish..." [SAPINO,
B., 4-6-92]
*
Ezra Murad. A diamond dealer, in 1989 he was accused of
defrauding Norway's second largest
bank of $3 million.
[HOROVITZ]
*
Samuel Dagan. An Israeli, he swindled two American banks out
of
$6 million. (Israel relented in this
case and extradited him to the U.S.
-- probably because of the problems
he caused to Israel itself.
Dagan had 21 earlier convictions
in the Jewish state for fraud and
extortion). [UPI, 8-15-90]
*
Yosef Lisch. A Hasidic
Jew, in 1998 he fled to Israel after the car
he was driving in a motorcade for
a prominent Orthodox rabbi hit and
killed a seven year old Black child
in the Crown Heights area of New
York, resulting in local riots and
increased Black-Jewish tensions.
[NOEL, p. 27]
*
Ronald Carmon. An Israeli-born lawyer, he worked for a New
York
City program that offered legal services
to the poor. He fled to Israel
after being caught defrauding the
city out of $7,000. [UPI, 12-22-88]
*
Nahum Vaskevitch. In 1994, this former head of the international
mergers and acquisitions for Merrill
Lynch in London absconded to
Israel after an illegal "insider
trader" scheme netted him $4 million.
Fellow conspirator David Sofer was
also Israeli. [APPELSON]
*
Ilan Mayan. In 1987, Mayan murdered a man in Los Angeles and
fled to Israel, but was later arrested
in Switzerland. [LA TIMES, 6-
25-87]
* Daniel Weiz.
Weiz fled to Israel from Toronto after being charged
with second-degree
murder. "Police have described the case as a random
assault
by a group wearing ski masks." [ASSOCIATED PRESS, 12-15-99]
*
Natchum Gal. "In Alberta [Canada] in 1982," noted
the Toronto
Star, "Dr. Natchum Gal
turned off the respirator sustaining a brain-
damaged newborn girl and authorized
a nurse to administer 15
milligrams of morphine. The child
died 40 minutes later. Gal denied
any wrong doing, but he fled to Israel
before facing a murder
charge." [TORONTO STAR, 10-15-94,
p. A4]
*
"Billy" King. In 1998 the New York Law Journal
noted that he
"fraudulently transferred to
himself valuable estate properties
consisting of commercial buildings
in Manhattan. Subsequently, he
remains a fugitive." [NY LAW,
p. 31]
*
Dror
Haim Goldberg, an Israeli. Indicted in 1999 for murdering
Manuela Silverio in a Houston wig
shop, "[police] strongly suspect
he has fled to Israel, which prohibits
the extradition of its citizens for
prosecution." [HOUSTON CHRONICLE,
p. A30] "It was vicious,"
said Houston police sergeant George
Aldreta, "We don't know the
exact reason for it, but we suspect
he may have done it for the pure
pleasure of killing somebody."
[AP, 2-12-99]
*
Jeffrey
Ashkenazi. Ashkenazi was a doctor in the small town of
Greenville, Michigan. He was arrested in 1998, initially on a mail-fraud
charge. Ashkenazi, noted the
Associated
Press, "had his medical
license suspended after improperly
treating 10 patients, one of whom
died ... [He] reserved one-way plane
tickets to Israel for himself and
family." [ASSOCIATED PRESS, 8-11-98]
*
Paul
Stern. Stern was indicted in 1971 for his part in a scam to
defraud insurance companies, including
fake care accidents and
medical bills. He was not arrested until 1997, when he tried
to enter
the U.S. from overseas. Stern, noted
the Chicago Daily Law Bulletin,
"was believed to have been in
Israel the whole time." [STEPHENS,
B., 4-9, 97]
*
Kenyon
Schulman. "Where is Kenyon Schulman?" asked the
Houston Chronicle in 1992, "Harris
County prosecutors ... learned
through Schulman's lawyer ... that
he's somewhere in Israel, probably
Tel Aviv." Schulman was wanted
for questioning when 400 hits of the
drug Ecstasy were found in the trunk
of his BMW. He had been
arrested earlier, in 1988, for computer
hacking. [MAKEIG, 10-21-92,
p. A23]
*
Sholam
Weiss. He was the kingpin of the "nation's largest-ever
insurance fraud" and, along with
three of his four co-defendants
(Jan Schneiderman, Jan Starr,
and Keith Pound), was convicted
of "racketeering, fraud, money
laundering and other charges." Weiss
was the brains behind criminal looting
the National Heritage Life
Insurance Company and was sentenced
to "what is believed to be
the largest Federal prison term ever
imposed" -- 845 years. "Many
of the company's 35,000-40,000 policy
holders lost most of their life
savings." Most were elderly,
living in Florida. The criminal
investigation against Weiss "followed
a five year criminal investigation
across nine states and led to dozens
of indictments." On October 18,
1999, Weiss skipped his $500,000 bail
bond and a New York court
sentencing, thereby making the FBI's
Most-Wanted list. A reward of
$125,000 was also offered for information
leading to his capture.
Weiss was alleged to be in Israel,
Austria, Brazil, or Belgium. Some
suspected he was hiding in America.
The presiding judge in his case
also fined Weiss over $123 million,
the criminal was also ordered to
pay back another $125 million in restitution
to insurance policyholders,
and another judgment against him demanded
$339 more for his
crimes.
Weiss was raised in the Borough
Park section of metropolitan
New York City in a cloistered ultra-Orthodox
community. He was
"educated in a
yeshiva [Jewish religious school], where
he spoke
Yiddish ... he did not learn to speak
English until he was in his late
teens." This criminal also "claimed
that he was a victim of company
executives who lured him unknowingly
into the conspiracy and took
advantage of his ties to the Jewish
community." Weiss was
earlier indicted in 1994 for mail
fraud. He was also a co-owner of the
famous Studio 54 nightclub and the
Scores striptease joint.
He "testified that he was involved in several business ventures
with
lawyer
Michael Blutrich and Lyle Pfeffer,
who owned Scores in
secret partnership with the mob."
Pfeffer and Blutrich were
sentenced to 25 years in prison for
their roles in the National Heritage
insurance fraud. [RASHBAUM, W., 3-9-2000; RASHBAUM, W.,
11-22-99; ASSOCIATED PRESS, 11-2-99]
For some reason, Jewish American scamsters
Harold and Alan Lieberman chose Chile, and not Israel, as their refuge from
the arm of American law. The two fled the U.S. in 1992 to escape prison for
fraud. "Their sudden departure," noted the St. Louis Post Dispatch,
"came three years after the collapse of Lieberman Corporation, once one
of the nation's top home builders." The brothers "left debts of
$15 million and a 37-page Federal indictment accusing them of defrauding lenders,
customers and contractors. They took with them a reported $6 million."
[MIHAOPOULOS, D., 3-1-98]
Living in luxury in Santiago, "the
Liebermans enjoyed a daily routine of Spanish lessons and every-Saturday visits
to the Jewish temple." In 1997, Alan's wife and another man were caught
trying to smuggle $750,000 back into the United State. Ms. Lieberman also
had cocaine in her purse. Alan soon returned to America and was sentenced
to prison. Brother Harold continued to resist expulsion from Chile, eventually
committing suicide. [MIHALOPOULS, D., 3-1-98]
Fugitive (since 1983) Jewish American financier
Marc Rich [who merits further discussion later in this chapter] chose Switzerland
to escape the arm of American law. Nonetheless, he became an Israeli citizen
in 1994 and "has donated about $200 million over the last 20 years to
Israel and worldwide Jewish charities." [DOBBS, M., 2001, 2-21-01]
"Maryland con man" Martin Bramson
("the mastermind of one of America's largest insurance fraud schemes")
chose Europe to hide. Tracked by Interpol for three years, Bramson was finally
arrested in the tiny country of Liechtenstein where he fought extradition
back to America to face charges of "money laundering, wire fraud and
mail fraud." Bramson had swindled thousands of doctors and laundered
money through 588 banks in countries throughout the world, including $43 million
in a two-year period in Anguilla alone. Others in his business scams included
his father Norman (an optometrist who went to prison in 1980) and his brother
Leonard (a lawyer who went to prison in 1990). [JAMES, M., 5-17-95, p. A1;
JAMES, M., 12-13-97, p. A1]
In 1997, Ira Einhorn was arrested in France
for the 1981 murder of a woman in Philadelphia. He had "vanished"
just before his trial was to begin. Einhorn was a "former peace activist,"
Philadelphia's "most recognized activist, a wildly dressed advocate of
psychedelic drugs, communal living, Eastern mysticism and environmental consciousness,"
and "a friend and guru to prominent Philadelphians in another era."
"Peace and love was what he stood for," said one acquaintance. [NEW
YORK TIMES, 6-18-97, p. A14]
Yet another Jewish renegade, from Texas,
is Alexander Ross (alias Alexander Cohen, or William Cohen), a man who was
not a licensed dentist but practiced anyway, eventually a fugitive in 1999
for both sexually molesting young patients and Medicaid fraud. "FBI and
police," noted the Houston Chronicle, "have begun an international
hunt for Ross. Investigators think he has spent at least several months in
Panama." [SMITH, M., 6-27-99, p. A1]
Perhaps Ross knows Jeffrey Gottlieb, wanted
by Alaska's State Medical Fraud Unit for over billing Medicaid, stealing drugs
from doctors, and selling drugs to drug dealers. "Gottleib told the State
licensing board that he attended a medical school in Guadalajara, Mexico,
from 1974-77, then went to study religion in Israel, then returned to receive
a medical degree in 1986 from American University of the Caribbean on the
Island of Monseratt ... One of Gottleib's patients [later arrested] alone
received 2 percent of all the controlled drugs prescribed to Medicaid patients
in Alaska." [TOOMEY, S., 5-2-2000, p. 1A]
Among other Jewish fraudsters who didn't
head for Israel is Hal Kaplan, a master con-man who has used "eight known
aliases and been convicted of fraud, theft, forgery, and bigamy." Married eight times, his favorite ploy, noted
the Los Angeles Times in 1993, is to marry rich women to "loot
their bank accounts." [GABRIEL, p. 18] Yet another kindred soul is Charles Ray Lonberger,
arrested in 1990, who ran a series of charity frauds, often under the pretense
of raising money for the Jewish Federation Council. [MEYER, J., p. J1]
Another, from the early 1980s, was Eduardo Rabiea, son of Iraqi Jews
who immigrated to the United States from Israel. Rabiea was described by a
New York prosecutor as "a master of deceit and deception who is wanted
for fraud all over the world," absconding with over $60 million in swindles.
[RAAB, S., p. B1] A fellow soul is also Britain's Jonathan Kern,
also Jewish, who was arrested while entertaining two prostitutes in 1999.
Also wanted for fraud and various scams all over the globe, Kern "has
previously impersonated members of the Rolling Stones, and fooled a Park Lane
garage into lending him a pounds 44,000 BMW by posing as a record producer."
Among other ploys, he has pretended he was a well known British auto race
commentator, Jonathan Palmer, creating bills in Palmer's name all over Europe.
"You are a persistent criminal and a man who deceives as a way of life,"
a sentencing judge told Kern. [PRYER, N., 1999]
In a 1994 Toronto Life article entitled
"Con Man," the criminal life of Patrick White was explored, stemming
from his defrauding of a local newspaper of $20,000. "Charmed by White's
affable manner, by his habit of smiling when he spoke," and "by
the Torah he displayed on his night table," David Mackin allowed alleged
investor Mr. White to take over as Managing Editor of his small newspaper.
"White," notes Toronto Life, "was regularly attending
Kensington market synagogue and by all appearances was a devoutly religious
man." [TORONTO LIFE, 11-94] Once White absconded, it was learned that
he was a master fraudster. He had served jail time in Canada in 1978 for "indecent
assault," and in 1982 for "a pair of fraud convictions." And
there were outstanding arrest warrants for him across North America: Ontario
-- theft, Virginia -- sexual assault against a boy, New York -- larceny, Mississippi
-- sodomy and sexual assault against a boy, Ontario -- theft, Nova Scotia
-- theft and fraud, Virginia -- sexual assault, and Alberta -- sexual asssault.
In New Brunswick, he then hired 35 people for nonexistent jobs for a nonexistent
night club, charging them each $100 for "uniforms." While in Toronto,
White once hired three boys to shovel snow from his sidewalk. Inviting them
inside, he showed them pornography. "When police searched the house,"
notes Toronto Life, "they found a cache of pornography along with
religious texts White had borrowed from a local rabbi. It was entitled The
Sexual Morality of Young People." [TORONTO LIFE, 11-94]
Another noteworthy con man of Jewish heritage
is Stanley Cherry (alias "Stefanos Coreey"). In 1999 a Canadian
woman fell in love with him but was the "victim ... of a fraud artist so diabolical that he
left her almost destitute: without savings, without access to credit and in
danger of losing her home." Total losses were about $75,000. It was eventually
revealed, notes the Montreal
Gazette, that "the man had been in
and out of jail throughout his adult life. Crime was his profession. It was,
you might say, his vocation." Three outstanding warrants for his arrest
existed for other crimes. Among the frauds earlier perpetuated by Cherry was
that upon another infatuated woman with him. [ABLEY, M., 4-12-99, p. A1]
Former Washington Post book critic
Geoffrey Wolff wrote an entire volume about his father. Here's how the book's
back-cover blurb describes the the material:
"The Duke of Deception is the unforgettable story of a man whose life
was so full of deceit that his love for his son was his only truth. 'Duke'
Wolff dragged his family from coast to coast, from luxurious homes to furnished
rooms, always looking for the next big break -- and always just ahead of his
creditors. No ordinary con man, he used an imaginative set of credentials
to pass himself off as a Yaleman and an aeronautical engineer. But his past,
his debts, and his flamboyant ways with other people's money finally caught
up with him."
Here's how author Wolf describes his father:
"My father was a Jew. This did not seem to him a good idea, and so it
was his notion to disassemble his history, begin at zero, and re-create himself.
His sustaining line of work til shortly before he died was as a confidence
man ... There were some awful consequences, for other people as well as for
him. He was lavish with money, with others' money. He preferred to stiff institutions:
jewelers, car dealers, banks, fancy hotels ... I wish he hadn't selected from
among the world's possibel disguises the costume and credentials of a yacht
club commodore ... But it is true, of course, that a confidence man who cannot
inspire confidence in his marks is nothing at all, so perhaps his tuneup of
his bloodline, educational vita, and war record was merely the price of doing
business in a culture preoccupied with appearances ... But for all his pre-occupation
with make-believe, he never tried seriously to write it. A confidence man
learns early in his career tht to commit himself to paper is to court trouble.
The successful bunco artist does his game, and disappears himself." [WOLFF,
G., 1986, p. 9]
Here's how Marsha Richman and Katie O'Donnell
describe the typical Jewish "con-man":
"THE JEWISH CON MAN. He's just good-looking enough. He went to a name-drop
school or two. He's had a name-drop position or two. He moves from position
to position, group to group. His only constant attachments are to this mother
and his children. He leaves a trail of people behind him who wonder why they
didn't see the too many finely tailored shirts, the monograms. Later, you
remember he was: a subtle name dropper. A whit too polished (his shoes, his
nails, etc.). He borrows the heritage of his married-into family, their friends,
their places, their clubs. He plays tennis with name pros like Pancho Gonzales.
He collects actors just out of vogue, first editions, antiques, and a sprinkling
of just credible folks for whom he has performed some minor service. All of
his speeding tickets are fixed. He fixes theater tickets to sold-out shows
on a moment's notice. He has a cover-up for everything from larcenty to misedemeanors.
He personally knows members of the Mafia."
[Richman/O'Donnell
1979
, p. 12-14]
In 1997, David Missman and his wife Karen
were sentenced to prison for ten years and probation, respectively, for swindling
investors -- primarily Los Angeles schoolteachers -- out of between $8 and
$18 million. Their two "salesmen" were Hank Springer, a former United
Teachers-Los Angeles president, and Nate Glazer. The two testified against
the Missmans in return for immunity from prosecution. [CARDENAS, p. B5]
In 1997, John Perry, the Jewish editor
of an Indian weekly newspaper, The New India-Times, was charged in
New York City for eleven counts of conspiracy and mail fraud. Perry called
the charges "a witch hunt" and sounded out a possible defense of
anti-Semitism from Israel and Jewish American newspapers, and the Anti-Defamation
League. [FORWARD, 5-23-97, p. 8]
In 1995 the former Executive Director, Lester
Kaplan, of the Jewish Community Center of Greater Washington DC, was imprisoned
for embezzling a million dollars from the organization. Three others, including
the Chief Financial Officer at the organization, Jay Manchester, were also
implicated. Kaplan could have gotten up to 95 years in jail, but was only
sentenced to seven years; he was freed after eight months. [RIVAS, p. D5]
The State Attorney General's office investigated and prosecuted the crime
despite the Jewish organization's decision to avoid publicity and not report
the situation to police. [ZOROYA, p. B1] Despite his record, in 1997 Kaplan
was hired as a Montgomery County public housing agency supervisor. "Kaplan,"
noted the Washington Post, "approached HOC [Housing Opportunity
Commission] chairwoman Barbara Goldberg-Golden -- a board member at the Jewish
Community Center -- and asked her for help [in getting a job]." [PEREZ-RIVAS,
p. D5]
In 2001, "Montgomery County prosecutors
... opened up an investigation into the handling of a charity fund at one
of the Washington area's largest synagogues [Congregation Beth El in Bethesda,
Maryland], after its senior rabbi reimbursed $300,000 to the fund because
of questions about how he had used the account." The rabbi, Jonathan
Maltzman, "transferred more than $220,000 from the charity fund to his
brokerage account at Fidelity; used $7,950 from the fund for his child's b'nai
mitzvah parties; and used about $11,500 to pay his self-employment taxes.
An additional $62,000 was withdrawn in cash at ATMS ... About $700,000 had
passed through the fund during the 11 years Maltzman administered it, [but]
only about $20,000 could be identified as having gone to charities."
[MURPHY, C., 5-10-01, p. B2]
In
1999, a Cincinnati rabbi, Jacob Lustig of congregation Kneseth Israel, was
found guilty of skimming hundreds of thousands of dollars of profits from
a series of synagogue bingo games spread across three counties in 19 storefronts.
"The instant bingo," noted the Associated Press, "took
in more than $1 million in 1996 and 1997, but his congregation received only
$250,000 of that. Lustig and his associates (Gerel Payne, Ralph Lipsky, and
Sam Semet) avoided prison time, although Lustig was ordered to surrender $920,000.
The Cincinnati Enquirer noted that "Judge Cartolano said the lack
of cooperation from the congregation, which still supports the rabbi, was
a problem for prosecutors." [HORN, D., 6-9-99, p. B5]
In 2000,
the Temple Sinai synagogue in Dresher, Pennsylvania, sued its fired Executive
Director, Barry Wilf; his wife Barbara who was an assistant bookkeeper at
the synagogue; bookkeeper Betty Shusterman; and Shusterman's husband, son,
and son's wife. They were accused of embezzling $700,000 over the years through
a bank that was also named in the suit. [FELDMAN, S., 5-4-2000, p. 9]
In 1999 too, the
Jewish Telegraphic
Agency reported that "the Jewish community in Poland is being wracked
by a scandal that has forced the country's umbrella Jewish organization to
fire its treasurer and downgrade the status of the Jewish communities of Gdansk
and Poznan ... Jewish organizations tried to keep the affair quiet."
[GRUBER, R., p. 9] That same year, Wolfgang Schnur, founder of the "Democratic
Awakening" political party and "a leader of the democracy movement
that toppled communism in East Germany 10 years ago," was "detained
on fraud charges after trying to cash phony securities at a Berlin bank."
An Israeli accomplice escaped. [AP,
Former]
In 1997, the Jewish Telegraphic Agency noted
a common theme in Germany:
"Jewish community elections in Germany
are rarely covered in the German
media. But the upcoming election in Berlin on
June 1 has catapulted the city's
Jewish community into the national media spotlight.
The stories center on real
estate scandals, alleged financial mismanagement
of community funds and
embittered personal rivalries among community
officials. The reports ...
cast a shadow on the integrity of some leading
members of Germany's
largest Jewish community ... Jewish leaders
worry that if the negative
publicity continues, it could weaken community
structures and damage
the political influence of Berlin's Jewish community
in the German capital."
[BERGER, D., 6-30-97]
In 2002, in England, we had this:
"Stamford Hill-based Hachzokas Torah Vechesed is
the latest strictly Orthodox charity to be rapped by the Charity Commission
over management issues. An inquiry was launched after commission officials
were alerted by the charity's bank to an attempted withdrawal of more than
40,000 [pounds] in cash. Concerned at such a large amount, the commission
discovered that the money had been kept "for a visiting rabbi to take
to Israel,' according to its official report published this week. 'It was
clear that this money was not the charity's property and that the charity
had been simply used as a conduit for funds ... Eleven strictly Orthodox charities
have been the subject of reports published by the commission in the last two
years." [ROCKER, S., 11-8-02, p. 6]
Also in 1999, Reform Rabbi Fred Neulander,
of Congregation M'Kor Shalom, the largest synagogue in southeastern New Jersey,
was indicted for the 1994 contract murder of his wife. "The subsequent
investigation into her murder," noted the Jewish Exponent, "brought
to light her husband's involvement in several extramarital affairs."
[SILVERSTEIN, p. 15] Later stepped forward an embittered man, Myron Lewin,
who also claimed that Rabbi Neulander had also "cheated me" in Levin's
purchase of a $16,000 Torah. [AP, 12-19-98] Somewhat similarly, in 1993,
a Jewish author, Michele Samit, wrote an entire book (subtitled The True
Story a Rabi's Deadly Affair) about a major sordid scandal in her own
synagogue congregation in metropolitan Los Angeles. The husband (Mel Green)
of the president
(Anita Green)
of Reform temple Shir Chadash
arranged for her to be murdered when she had and affair with center's rabbi,
Steven Jacobs, and left her husband. This case, writes Samit, "was the
stuff of tabloids and miniseries: a shooting, rumors of sex between two spiritual
leaders in the temple setting, accusations, criminal charges, and people lying
on the witness stand to save their reputations ... The Los Angeles Jewish
community prides itself on its high values, moral superiority and insularity.
My temple leaders and members seemed to worry more about this reputation than
about what had happened." [SAMIT, M., 1993, p. xxi, xxiii] The victim's
mother was outraged that the rabbi seemed to care more about his reputation
than his ex-lover: "When the detective told us how to handle the press,
and that the police would make all the statements, the rabbi went crazy. He
said, 'There can't be any statements. I want to keep a low profile. This can't
get out to the press. I'm a rabbi.' All he cared about was himself. He didn't
want there to be an arrest or a trial if his name would come up. It made me
sick." [SAMIT, M., 1993, p. 210]
In 1992, another rabbi, Austin Yoncy Feld,
and his brother were held in a San Francisco-area jail on charges that they
planned to murder a Palo Alto child psychiatrist, Saul Wasserman, and his
wife. Recently arrived from Jerusalem, police found in the rabbi's car "six
plastic handcuffs, two knives, ski masks, detailed floor plans of the house,
photographs of the Wassermans, a key to every door in the house, a bouquet
of flowers and the location of a shotgun in the house." Police suspected
the plan was motivated by the Wasserman's daughter, a student in Israel, who
accused her parents of sexually molesting her when she was a child. [MCCABE,
M., p. A25]
Looking more deeply into the American Jewish
Committee's Jewish self-described "tradition, experience, and values,"
we can find some very prominent Jewish organizations seemingly going out of
their way to try to affirm the classical stereotype that Jews are addicted
to money at any moral cost. We have seen already the likes of Ivan Boesky
as the chairman of the New York City United Jewish Appeal for two years during
his illegal hoarding of tens of millions, and World Jewish Congress President
Edgar Bronfman whose family fortune (Seagram's) was built upon illegal alcohol
smuggling from Canada (including a deal with major Jewish mobster Meyer Lansky)
to the United States during Prohibition. "Though the Bronfmans,"
says Dennis McDougal, "denied any complicity in the transport of their
wares across the U.S. border during the Prohibition, notable gangsters like
Abner 'Longie' Zwillman and New York Mafia 'Prime Minister' Frank Costello
admitted to the Kefauver Committee that a steady stream of whisky flowed out
of Bronfman distilleries and into millions of dry American mouths." [MCDOUGAL,
p. 144] (Among many other charitable donations to Jewish organizations, the
Bronfman family donated a million dollars for a new wing of the Israel Museum
in 1962).
Of course there is also the prominent philanthropist
Annenberg family fortune, at least partially based in underworld links decades
earlier, and (the later to be discussed) common connections between Jewish-dominated
Hollywood and the criminal underworld there. "U.S. smugglers, conmen,
and thieves couldn't seem to get enough of the movies and the stars during
the first half of the century." [MCDOUGAL, p. 145-146] Then there is
Robert Maxwell, the corrupt Jewish/British businessman who manipulated what
later became known as "colossal swindles of a particularly nasty kind"
[GROSS, p. 380-381, see earlier] who in 1991 went to Israel's Holocaust memorial
center to be bestowed Yad Vashem’s "Remembrance Award" for his "dedication
to Yad Vashem and all it stands for." [AXELROD, T., p. 41] Seven months
after Maxwell's death, his two sons and an American associate, Larry Trachtenberg,
formerly a lecturer at the London School of Economics, were arrested in England
on charges of fraud and theft of $250 million.
A Washington Post article did not mention their ethnicity, but
patriarch Robert Maxwell was described as a "Czech [who] arrived in Britain
after World War II almost penniless and made himself one of Britain's biggest
media tycoons." [MACASKILL, p. A31]
Elsewhere, in 1995, the largest non-Orthodox
Jewish high school in America (located in Los Angeles) raised eyebrows when
it renamed itself "Milken High" after a $5 million donation from
the Milken Family Foundation. The high school is part of a new multi-million
dollar "cultural and artistic showplace" complex which includes
the Skirball Museum. Principal Bruce Powell qualified the new high school
name, insisting that it was technically named after the "Milken Family
Foundation," and not the convicted felon. Powell also told the Los
Angeles Times that, besides, he believed Michael Milken was "tried
and convicted in the press by innuendo and a politically ambitious prosecutor."
[DART, p. B9] "We feel [the Milken High School name] is a non-issue,"
Shoshana Hirsh, planning director of the San Fernando Jewish Alliance, told
the Times. After all, another Jewish complex -- the West Valley Jewish
Center in West Hills, California -- already opened in 1987 -- in the midst
of Michael Milken's financial scams -- as the Bernard Milken campus, named
after Michael's father.
In 1991, Thomas and Joseph Gambino, sons
of deceased Mafia leader Carlo Gambino, and recognized organized crime figures
in their own right, donated $2.3 million to the Long Island Jewish Medical
Center. Tom was at the time under federal investigation for racketeering,
extortion, loan-sharking, and murder charges. Joe was indicted a few months
earlier for extortion and restraint of trade. Hospital officials announced
a new facility to be named the Gambino Medical and Science Foundation Bone
Marrow Transplantation Unit. "No amount of money these men give,"
complained one disgusted hospital trustee, "can offset the damage this
incident is doing to the hospital's reputation." [BRUNING, p. 15]
In 1958 media mogul Walter Annenberg proposed
to fund what he called the "M.L. Annenberg School of Communications"
at the University of Pennsylvania, named in honor of his father, Moses, a
man who built the Annenberg fortune in association with a variety of criminal
underground figures, including mobster Meyer Lansky. John Cooney writes that:
"There had been a loud opposition
from faculty members who objected
to Penn's honoring a man of Moses' past.
Moreover, many faculty
members believed that Annenberg wanted
to retain control over the
school by appointing faculty members himself,
a situation they
considered intolerable." [COONEY,
p. 282]
In 1985 Myron Goodman and his brother-in-law
Mordechai Weissman merited an entire volume about the moral fiascos in their
company called OPM (The OPM
Scandal and the Seduction of the Establishment). Founded in 1971,
OPM became the largest purchaser of IBM
equipment for their computer leasing company. Clients included AT&T, American
Express, Rockwell, Occidental Petroleum, and many others.
In 1980 Goodman and Weissman were found
guilty and sentenced to 10-12 years in prison for check kiting, conspiracy,
and mail and wire fraud. The company fraudulently obtained nearly $200 million
from lenders. Other OPM officials
found guilty of criminal actions in the case included Allen Ganz, Manny Friedman,
Stephen Lichtman, and Jeffrey Resnick. Kickbacks also went to Jewish executives
at Montefiore Hospital (Harry Weiss) and American Express (Martin Shulman).
[GANDOSSY, p. 32]
OPM employed 17 Goodman/Weissman
relatives.
"Both Goodman and Weissman were Orthodox
Jews," notes Robert Gandossy, "who practiced Jewish dietary laws
and refrained from work and travel on the Sabbath. A mezuzah [a Jewish religious
artifact] hung on every office door at OPM ... Weissman's faith was so strong
that he left OPM in 1973 to fight in the Israeli war in the Middle East."
[GANDOSSY, p. 20] Not surprisingly,
Goodman also "gave away millions to charitable organizations, particularly
those with Jewish affiliations." [GANDOSSY, p. 20]
This included $1 million to Yeshiva University, where he was elected
to be a board member.
In 1996, officials at Beth Israel Hospital
and the Hebrew Rehabilitation Center for the Aged wrote testimonial letters
on behalf of Jewish philanthropist Simon Fireman to help keep him out of jail.
Fireman, Hebrew Rehab's Man of the Year in 1996, (he funded their "Fireman
Pavilion" a year earlier) faced a federal court and 74 counts of conspiracy
to hide $120,000 in illegal political campaign contributions. [GELBWASSER,
p. 5]
In 1999 Garth Drabinsky and Myron Gottleib,
co-founders of the giant theatre producer
Livent, Inc. (the organization behind popular musicals like Showboat,
Ragtime, and Kiss of the Spider Woman) were arraigned for 16
charges of conspiracy and securities fraud in Manhattan. "Some individuals
and groups in the non-profit sector," noted the Ottawa Citizen,
"particularly in Toronto's Jewish community, are evaluating the impact
on past and future funding received from [them]." [MAROTTE, B., p. E3]
In 1997, Roy Rosenbaum, the vice president
of development for the Jewish Theological Seminary, defended the practice
of accepting money from anyone, no questions asked:
"Should a charity accept money from
someone who may have earned
it by illegal means of any kind? ... I
believe that it is appropriate to
do so." [KORDOVA, p. 27]
"There's a difference," insisted
Rabbi Stephanie Dickstein in the Jewish Theological Seminary's magazine, "between
accepting money of a questionable background and the directors of the organization
engaging in such behavior themselves." [KORDOVA, p. 27] This disturbing
worldview from a preeminent Jewish American theology center essentially sanctions
any immoral, unethical practice and any crime if, in the end, the Jewish charity
recipients themselves didn't themselves pull the trigger.
Over the years, notes Robert Rockaway in
the journal American Jewish History, "Jewish organizations and
charities did accept gangster contributions, rarely inquiring as to the source
of the money given to them, neither did they discriminate among donors. [Prominent
Jewish mobster] Meyer Lansky donated large sums of money to his synagogue,
Temple Sinai in Hollywood, Florida, to [the Jewish-founded] Brandeis University,
and to causes related to Israel." [ROCKAWAY, p. 237] "Over the years," adds Stephen Birmingham,
"[Jewish mobster Meyer Lansky] has been very generous to Israel -- not
only with personal contributions, but also by regularly turning over his Las
Vegas hotels and casinos for Bonds for Israel rallies." [BIRMINGHAM,
p. 358]
In 1970 Moe Dalitz, "a leading member
of the Cleveland crime syndicate," and controller of the Stardust and
Desert Inn Las Vegas casinos, was awarded the City of Peace Award of the State
of Israel "in recognition of distinguished service to the people and
state of Israel." [ROCKAWAY, p. 227] In 1985 the Anti-Defamation League
of B'nai B'rith bestowed their "Torch of Liberty" award upon him
for his cash support of that group. [ROCKAWAY, p. 227] A gangster associate
revealed to a 1947 organized crime commission that Dalitz was in fact the
chairman of the Nevada United Jewish Appeal. [ROCKAWAY, p. 227] In 1982, Dalitz was listed by Forbes magazine as one of the
400 wealthiest people in America. [ROCKAWAY, R., 1993, p. 37] In terms of
the criminal underworld, he was also known as "the godfather of Las Vegas."
[ROEMER, p. 52] In 1949, Murray Greenfield
was a hero to Israel; he was activist in guiding immigrants to the Jewish
state. He connected in Baltimore with the Jewish criminal underworld through
a contact at a local United Jewish Appeal function. [ROCKAWAY, p. 231]
Also in Las Vegas, Ze'ev Chafets notes the
story of "a local Jewish madam [who] had given a talk to a B'nai B'rith
meeting. Prostitution is legal in Nevada, and the madam, a Jewish lady named
Beverly Hurel, is a highly regarded businesswoman." [CHAFETS, p. 101]
Other prominent local Jewish activists included Jack Entratter, who
was concurrently the president of both the Sands Hotel casino and the Temple
Beth Sholam synagogue.
In 1973 Morris (Moishe) Levy, head of the
musical recording label Roulette Records,
was honored by the UJA music division as its man of the year. [DANNEN, p.
51] "One of the most aboveground institutionalized mob involvements in
the [music industry]," noted Steve Chapple and Reebee Garofalo in 1977,
"was suggested at Senate hearings in 1973, during the testimony of Gerland
Zelmanowitz, a Mafia financier turned informer who said Angelo 'Gyp' DeCarlo,
a New Jersey Mafioso, and Tommy Eboli..., another top-level mobster shot and
killed in New York, were partners in Roulette
Records. The label's president, Morris Levy, says the mob was never in
Roulette, but acknowledged Mafia money
in Promo Records, which he used
to share with Eboli." [CHAPPLE, p. 230]
In roasting Levy at the UJA dinner in his
honor, Joe Smith, the head of Elektra
records, told the crowd, "The thought of coming up to honor Morris Levy
and to introduce him and say something complimentary about this crowd here
tonight, is the most difficult assignment I've ever faced.... [There are]
two things all these ladies and gentlemen on the dais have in common: They
cheated everybody every time they could. And they are the biggest pain
in the ass to be around." [DANNEN, p. 51] Turning to address a friend
of Levy's in the audience, Hy Weiss, the founder of the
Old
Town record label, Smith said, "Hymie was assigned not to the table,
but to room 328 where he's gonna line up the hookers for a party afterwards."
[DANNEN, p. 51-52] "There was laughter and applause to these remarks,"
says Fred Dannen. "I was the payola [bribe] king of New York," said
Weiss later, "Payola was the greatest thing in the world. You didn't
have to go out to dinner with someone and kiss their ass. Just pay them, here's
the money, play the record, fuck you." [DANNEN, p. 51-52]
In 1988 Morris Levy was convicted of two counts of conspiracy to commit
extortion.
In 1982 Roy Cohn (who rose to fame as the
right-hand man of Senator Joe McCarthy's anti-communist witch hunt purges
in the 1950s) was honored at a State of Israel Bond "testimonial dinner"
sponsored by the B'nai B'rith Banking and Finance Lodge. Cohn was awarded
the City of Peace Award "for his ongoing advocacy of American economic
and political support of Israel." [JEWISH WEEK, 4-15-83, p. 44] Cohn
had earlier been honored by the Jewish National Fund and the Federation of
Jewish Philanthropies. Cohn was once disbarred from the practice of law for
a year and a half for stealing from a client (this client, Lewis Rosentiel,
head of the giant Schenley alcohol fortune and a prominent philanthropist
for Jewish-founded Brandeis University, was also known to have been involved
with the mob); [SUMMERS, A., 1993, p. 248] over a ten year period Cohn was
also acquitted in three separate trials involving obstruction of justice,
perjury, a stock-swindle scheme, bribery, conspiracy, and filing false documents.
"At these trials," notes Thomas Maier, "the testimony revealed
some of Cohn's friends and associates included such underworld figures as
Moe Dalitz, ... a man described by authorities as an 'under boss' to Mafia
chieftain Vito Genovese; and Meyer Lansky, the Miami gangster." [MAIER, p. 98]
(Cohn's uncle, Bernie Marcus, head of the Bank
of the United States, even spent time in prison. Why? "The WASP establishment,"
says Cohn, "went after the Bank of the United States with a vengeance
that was pure in its anti-Semitism.") [ZION, S., 1988, p. 24]
In Miami also, noted Robert Friedman in 2000,
"until recently the ringleader of the Russian mob in South Florida,"
Ludwig Fainberg has held "numerous fundraisers ... for Jewish charities
at a restaurant and nightclub he owns called Babushka." [FRIEDMAN, R.,
4-10-00]
A lot of Jewish World War II lackies to Nazis
ended up working as officials in American Jewish community organizations.
As noted Jewish Nazi-hunter Simon Wiesenthal notes:
"I made a [postwar] rule that was approved
by the American military government authorities
and became known as Lex Wiesenthal: Latin for Wiesenthal's Law.
It was very simple: WHOEVER HAD A FUNCTION OF AUTHORITY
IN
THE NAZI PERIOD COULD NOT HAVE A FUNCTION IN POSTWAR
JEWISH LIFE. [Wiesenthal's emphasis] I wasn't saying
such a man was a
criminal. I wasn't even looking into whether
he was good or bad. But I needed
to protect our Jewish society from more bad
surprises' ... Wisenthal noted
that 'in many cases, such people after the war found
jobs with Jewish
organizations. Maybe they were trying to atone; maybe
they thought this was
the best place to hide. Once, I was going special
to Paris to see the director
for Europe of the [Jewish] Joint Distribution Committee,
because working for
him was a man -- a Jew! - who had been in a concentration
camp the head of
the transports to the death camps. According to Wisenthal,
the JDC director,
an American, responded, 'So what? This was a time
when everyone had to
serve.'" [LEVY, A., 1993, p. 85]
In 2001, President Bill Clinton found
himself in another scandal when he pardoned Jewish American fugitive Marc
Rich, wanted since 1983 on "51 counts of tax evasion, racketeering and
violating sanctions against trade with Iran." New York mayer Rudolph
Giuliani notes that Rich's crimes included "the biggest tax evasion case
in United States history." Rich "was also charged with a complex
oil scam that exploited America's energy crisis in the early '80s. The 65-count
indictment claimed he had secretly bought up millions of barrels of Texas
crude oil then under strict price controls and relabeled the oil as decontrolled
supplies, ultimately selling it on the open market for huge profits -- reportedly
$100 million. And while 52 Americans were held hostage in Iran, Rich's company
allegedly made another fortune by trading with the Ayatollah Khomeini's regime
in violation of a strict American trade embargo." [DAWSON, P., 2-12-01]
As a fugitive, Rich the wanted criminal had
given over $70 million to Israeli causes. Hence, as the
Jewish Telegraphic
Agency noted about massive international Jewish lobbying efforts to get
the pardon:
"The Rich case puts an uncomfortable spotlight
on the many Jewish and Israeli
causes, like Birthright Israel [which sends
young Jewish Americans to Israel],
that Rich supported. Indeed, a
New York Times
article noted that the list of
people who wrote letters [to Clinton] supporting
Rich's pardon is 'a virtual
Who's Who of Israeli society and Jewish philanthropy.'"
[WIENER, J., 2-9-01]
These included Rabbi Irving Greenberg, head
of the U. S. Holocaust Memorial Council, who asked Clinton, on Rich's behalf,
to do "one of the most Godlike actions that anyone can ever do."
"Rich has given to a variety of major institutions in Israel," noted
the
JTA. [WIENER, J., 2-9-01]
As Jewish commentator Ben Stein lamented:
"The really embarrassing moral disgrace attaches
itself to, first, the chairman
of the U. S. Holocaust Memorial Council, Rabbi
Irwin Greenberg, who wrote
Clinton urging a pardon for Rich, and to Ehud
Barak, who while prime
minister of Israel likewise solicited Clinton
... It's part of the thinking about
the Holocaust that whatever is thought bad
by Holocaust experts -- such
as Greenberg -- is bad, and whatever is thought
good is good. To spend
such moral capital to get a pardon for Rich
is disgusting. To think that
the pity Americans feel for the Holocaust
dead and survivors should be
manipulated to aid a man accused of trading
with America's enemies for
profit is revolting." [STEIN, B., 2-14-01,
p. 15A]
Israeli commentator Ze'ev Chafets was also
shamed to comment about the international Jewish lack of morals in the effort
to secure pardoning of such a corrupt man:
"The effort of Rich's strategists
to turn their client into a modern day Alfred
Dreyfus [a famous French Jew who was falsely
tried for disloyalty] --
with the active connivance of some of the
world's most prominent Jewish
personalities and institutions -- is a scandal
in its own right ... [Abraham]
Foxman is the national director of the Anti-Defamation
League of B'nai|
B'rith, America's most prestigious Jewish
group. He wrote an official ADL
letter to Clinton, asking him to pardon Rich.
I called the ADL to ask why
its director had intervened with the President
of the United States on
behalf of a master swindler and member in
good standing of the FBI's
most wanted list.
'Humanitarian reasons,' a spokeswoman
told me.
What possible humanitarian reason,
I wondered, could there be to pardon
a billionaire who lives in a Swiss castle
and flies around the world in his
own jet? And what did a crook like Rich have
to do with the ADL? ...
As for Foxman, Greenberg and other
so-called American Jewish leaders,
they prostituted themselves and their organizations
for a rich criminal ...
Foxman's not alone. Led by a Tel Aviv-based
former Mossad agent
named Avner Azulay, the Rich team put together
a Jewish who's who
of supporters. They got their client character
references from famous
rabbis like Shlomo Riskin; from Rabbi Irving
Greenberg, chairman of
U.S. Holocaust Memorial Counci; from the chief
rabbi of France;
from the directors of a half-dozen Israeli
hospitals, and from Marlene
Post, former head of Hadassah [the women's
Zionist organization].
Rich also received active support
from former Israeli Prime Minister
Shimon Peres; Knesset Speaker Avraham Burg;
Israeli Foreign
Minister Shlomo Ben-Ami; ex-Ambassador to
Washington Itamar
Rabinovich; former Jerusalem mayor Teddy Kollek;
the current
mayor, Ehud Olmert, and dozens of other Israeli
politicians ...
By participating in what appears
to be an international conspiracy, they
have given life to a classic anti-Semitic
fantasy and earned themselves
a place on the Anti-Defamation League's list
of enemies of the Jewish
people." [CHAFETS, Z., 2-15-01, p. 51]
It was even eventually revealed that Abraham
Foxman, director of perhaps the best-known Jewish organization, the Anti-Defamation
League, a powerful enforcer of self-defined public morals (particularly
against what it defines as "anti-Semitism") and ardent defender
of Israel, had accepted a $100,000 donation to ADL from Marc Rich shortly
before Foxman wrote his letter to Clinton in behalf of the criminal. "The
ADL," noted the New York Post, "that Foxman and Rich's Israeli
representative, former Mossad agent Avner Azulay, met in Paris last February
to discuss ways to resolve Rich's legal problems." ADL spokesperson
Myra Shinbaum declared that the ADL ("which annually budgets $50 million
to fight anti-Semitism") wouldn't be returning the money. [BLOMQUIST,
B., 3-24-01]
In
1994, in the (Jewish) Forward's list of the most important Jewish
American leaders, Shoshana Cardin was noted as "chief of staff of American
Jewry" and "past chairman of almost everything," from the
United Jewish Appeal to the National Jewish Center for Learning and Leadership.
The Forward also noted that she "stood by her husband [Jerome
Cardin] with dignity when he went to prison for his role in a Maryland savings-and-loan
scandal." [FORWARD, p. 11-18-94, p. 11] Cardin was released from prison
early for medical reasons, but an associate -- Jeffrey Levitt -- spent seven
years behind bars.
Levitt,
who was active in Jewish charities which fueled his "concurrent rise
in Baltimore's Jewish community," was well known in the 1970s "as
one of Baltimore's most audacious slumlords." [BAKER, p. A1]
As president of the Old Court Savings and Loan Association, he was
involved in what one prosecutor termed as possibly "the largest fraud
in the history of the state of Maryland." [BAKER, p. A1]
Likewise, in Boston, as elsewhere, the Realty Lodge of the local chapter
of the B'nai B'rith Jewish fraternal organization (which is the parent of
the Anti-Defamation League) "represented many of the city's Jewish slumlords."
[HILLEL/HARMON, p. 185]
In 1982, Earl Shorris recalled his childhood
memories of the kinds of men who headed his synagogue:
"We arrived at the synagogue as a family,
three generations led by my grandfather
... My grandfather spoke to his friend Eddie
-- Big Eddie, he called him. They
spoke as members of the board of directors
of the synagogue, important men,
big donors. My grandfather earned his money
from the labor of Italian and Polish
women
who sewed clothing in his factories. Big Eddie sold cheap wine and whiskey
to the poor of the town. We did not approve
of Big Eddie. His diamond ring and
his fat cigar offended us ... [H]is business
offended us. There were fights in front
of his store, stabbings, more than one killing.
There were rumors about him.
Some people said he dealt with criminals. It
as said that he gave so much to
the synagogue to atone for the way he made
his money ... He traded donations
for a position as a director of the synagogue.
My grandfather said Eddie wanted
to be president, that he was willing to donate
a community center if the directors
would elect him president .... [SHORRIS, E.,
1982, p. 3-4] [When Big Eddie
finally strode up at the synagogue to be so
honored, "the man our community
commended
to God" (p.7)] the color of his flesh was as rich and vulgar as his
suit. [Grandfather,] you were so small, so
pale beside him. Jerusalem was
conquered, the Temple was destroyed, and there
was no prophet in all of Israel.
After the service I asked my father why it
had happened. Money, was all he
said. Sometimes you have to do these things,
my grandfather added. A
building doesn't come cheap." [SHORRIS,
E., 1982, p. 7]
Israeli scholar Robert Rockaway notes the notoriously
ruthless all-Jewish Detroit Purple Gang of the prohibition era:
"[Purple Gang members] were what we would
call 'traditional' Jews; they
observed certain religious rituals and traditions
such as lighting the Sabbath
candles, eating kohser food at home (and often
outside the home), attending
synagogue on Jewish holidays and hosting or
attending a Passover seder. Some
of the fathers [of gang members] were active
members and even officers of
synagogues ... [O]n one particular Day of Atonement,
the FBI sent two agents
to Congregation B'nai David in hopes that some
of the wanted Purple gangsters
would show up for services. At the time, the
uncle of a leading Purple gangster
was president of the congregation." [ROCKAWAY,
R., 2001, p. 113-]
In 2001, Ronald Lauder, heir to the Estee Lauder
cosmetics fortune, stepped down as the chairman of the Conference of Presidents
of Major American Jewish Americans, the umbrella organization for this country's
most prominent Jewish groups. Lauder was known jokingly as the "King
of the Jews." That same year the New York Times reported that
Lauder's overseas company, Central European Media Enterprises, was "under
investigation over allegations that it paid at least $1 million in bribes
to Ukrainian officials for a valuable television license, according to lawyers
and [U. S.] Justice Department documents." Lauder owned Ukraine's best-known
TV station, Studio 1+1, with Jewish crime lords Vadim Rabinovich and Boris
Fuchsmann, who, although "known around Kiev for their influence and welath,"
were "less well known [for] their ties to Russian organized crime, according
to reports by the F.B.I. and European law enforcement agencies." [BONNER,
R., 6-12-01]
In 1995, Jeanette Nelson and her husband
Victor Incenty (honorary co-chairpersons of an American Jewish Committee tribute
to the conductor of the Florida Symphony Orchestra) were arrested for an "alleged
scam to cheat thousands of investors out of $170 million." [DOUGLAS,
R., 5-26-95, p. B6] Vincenty's company, Cascade International, had made Fortune
magazine's 1989 list of "companies to watch." Also in Florida,
in 1998, Phillip Scott Plotka was noted to have
"the resume of a prominent insurance agent
... In 1996 he received the Quality of
Life Winner award by the Million Dollar Roundtable
Foundation. He serves on the
board of Jewish Vocational Services and on a
professional advisory
committee for the insurance industry ... But
Wednesday, Plotka gained a
different sort of notoriety. He became the first
agent arrested in Miami-Dade county
on charges of insurance fraud solicited through
the Internet ... The Florida
Department of Insurance said he solicited clients
with the AIDS virus and
instructed them to falsify insurance appications
so they would be accepted ...
'This is a particularly onerous case because
the individual is a highly regarded
individual in his field,' [Dade Assistant State
Attorney Mark] Shapiro said. 'He
sits on an ethics committee." [ACLE, A.,
5-7-98]
In Canada, in 1989, Patricia Starr
"was facing revelations in the Toronto
media that she had channeled
more than $82,000 of charitable funds
from the local branch of the
National Council of Jewish Women, of which
she was president, to
Liberal and Conservative politicians and
to Liberal activists. The Federal
Income Tax Act prohibited charities from
making such contributions,
and Ontario legislation limits the size
of individual donations that a
politician can accept." [KAIHLA,
p. 12]
Starr also pleaded guilty to lying to
receive an unwarranted $357,000 from the local government for her Jewish organization,
of which she personally stole $33,000. [BRENT, p. A1] The National Council
of Jewish Women itself faced 22 court charges for various legal infractions;
they were dropped, however, because -- in the words of the government prosecutor:
"It would have been like having the same trial [as Starr's] all over
again. I don't think that would serve the public interest." [DEVERELL,
p. A3]
In 1998, the National Jewish Council of
Jewish Women made the news again, this time in Denver, where its treasurer
of 14 years, Ellen Bloch, was found to have embezzled over $150,000. [SORAGHAN,
p. B12] In England, that same year,
the (London) Independent headlined a story "Chief Rabbi Rocked
by Fraud Scandal." Rabbi Jonathan Sacks is "seen by many Jews and
non-Jews as the spiritual center of British Jewry ... is technically the Chief
Rabbi only of the United Synagogue, the main Orthodox movement with 70 congregations
in the United Kingdom." Suddenly he was "embroiled in deepening
turmoil." Police were investigating "allegations of fraud at Jewish
cemeteries in east London" and "the disappearance of highly valuable
texts from a religious library." [KOSSOFF, p. 6]
In 2001, the Jewish Chronicle noted another
Jewish cemetery escapade: "an ugly real estate battle between a New Jersey
synagogue and its former cantor [that] has begun to focus on a larger question
of whether congregants benefitted from unethical business relationships they
formed as synagogue benefactors." Harvey Waldman filed suit alleging
that the temple's rabbi and other congregants took kickbacks "on a profit
of more than $20 million" in a cemetery land scheme. [CATTAN, N., 3-27-01,
p. 9]
In 2000, Jean Thorbourn, a bookkeeper and
financial consultant for the Hebrew Union College-Jewish Institute of Religion
in Los Angeles was charged with "embezzling more than $1 million from
the institution -- some of which was apparently used to finance the production
of independent films." [WESTPHAL, S., 3-11-2000, p. B1] In 2001,
rabbis Jacob Bronner and Efroim Stein "pleaded guilty to defrauding the
US government of part of a $2.5 million federal grant intended to aid Holocaust
survivors." The two men embezzled hundreds of thousands of dollars. [HENRY,
M., 2-16-01, p. 4]
In Canada, scrap metal millionaire Morris
Lax was the victim of an unsolved murder in 1993. Guy Crittenden notes "the
closed-shop nature of the scrap business" and that
"Even Lax supporters don't deny he was
crooked (though perhaps not more
so than some others in the business). He pled
guilty to criminal charges in the
early 1960's after being caught with stolen
brass. On February 16, 1977
he was fined $34,000 after pleading guilty to
three counts of falsifying
company records ... Another time police found
a portion of four tons of
stolen copper at Lax's property ... People remembered
him as an oddball
who was physically filthy and would inadvertently
spit upon listeners when
he became animated in conversation. (This was normally
Yiddish; Lax
avoided speaking English throughout most of
his life in Canada) ... Money
allowed Morris Lax one luxury. He was a prominent
supporter of Israel
and, in stunning contrast to his usual crudeness,
moved easily in the
highest circles of Israeli political life, counting
among his friends Mr.
[Menachem] Begin [Israel's prime minister] (with
whom he'd fled Russia)
and Yitzhak Shamir." [CRITTENDEN, G., 2001]
Chester and Morris Waxman, business associates of
Lax, built to power "one of the top three scrap-recycling enterprises
in Canada." Chester, the Jewish community's Man of the Year in 1979,
eventually was involved in a 14-year lawsuit with his brother (who initiated
charges) which provided "a veritable parade of witnesses who have leveled
accusations of fraud, conspiracy, diversion of funds, racehorse-breeding schemes,
evidence tampering and bertrayals of deathbed promises." [CRITTENDON,
G., 2000]
"What a bunch of shiksas in here!" proclaimed Bess
Myerson, the only Jewish Miss America in history, in 1995 at the sight of
a number of blondes in attendance at a gathering of the Women's Division of
Israel Bonds of Maryland. Myerson, speaking as a member of the Israel Bonds
national board and the board of the Anti-Defamation League, noted that "my
greatest source of renewal comes from walking into a room filled of Jews."
The Baltimore Jewish Times also observed that
"she did not allude to her well publicized
legal troubles over the years,
which have included indictments in the
mid-1980s on charges of
conspiracy, fraud and obstruction of justice
for allegedly bribing a judge
to reduce support payments to her then-boyfriend's
former wife. Ms.
Myerson eventually was acquitted of the
charges. She was also arrested
for shoplifting in Pennsylvania seven
years ago." [SHAPIRO, D. p. 36]
Myerson, a millionaire, was in fact arrested
twice for shoplifting. The first time was in London. Luckily for her, this
fact was not reported. At the time she was the New York City Consumer Affairs
Commissioner. [PRESTON, J., p. 85]
Meyerson's non-Jewish boyfriend, Carl Capasso,
was already married and was twenty-one years younger than her. Capasso's wife,
Nancy, was also Jewish. [PRESTON, p. 147] His "best friend and neighbor
was Mafia boss Matthew (Matty the Horse) Ianniello." "Capasso,"
notes Jack Newfield and Wayne Barrett, "was probably the only cheating
husband in history who claimed to be spending his nights with a Mafia boss
(Ianniello) when he was really having an affair with Miss America." [NEWFIELD/BARRETT,
p. 8] (In 1998, Myerson donated money to the Anti-Defamation League to institute
the "Bess Myerson Campus Journalism Awards," conceived by her as
"an important tool in reaching students far and wide in the fight against
hatred," encouraging "student journalists to think critically about
interracial, interethnic, intercultural and interreligious relations."
[STRONGWATER, 1998, p. 4] )
In 2001, a Jewish journal, the Forward,
featured an article about shoplifting, using actress Winona Ryder, real estate
heir Robert Durst, and Bess Myerson as examples of the Jewish wealthy who
steal for psychological reasons. In one man's case, his "Holocaust"
background is allowed to excuse his thieving behavor. "Sometimes,"
noted the article,
"the stressor [shoplifter under stress]
can be very old. For example, Mr. [William]
Chupchik
-- who holds intervention seminars for what he calls 'atypical theft
offenders' -- had a wealthy patient, a Holocaust
survivor, who was arrested for
stealing a $15 pair of Dr. Scholl's insoles
from a drug store. 'He had no reason,
no excuse for the theft behavior,' he recalled.
Still, as Mr. Cupchik spoke to the
man about his past, he learned that the day
of the theft was the 50th anniversary
of his liberation from a concentration camp,
when 'inmates were awakened at 3
a.m. and were forced to march, most of them
without shoes, along a rock-laden
rail line.' 'It was an anniversary reaction,
manifested in atypical theft behavior,'
Mr. Cupchik said." [KEYS, L., 12-28-01]
In 1997 the UJA-Federation of New York
found itself in an in-house ethical controversy when James S. Tisch, whose
family controls the Lorillard Tobacco
corporation, was nominated to head the Jewish organization. "Morality,
ethics, Jewish law against self-destruction and common sense," said fellow
UJA board member Henry Everett," mandate that it would be repugnant for
a tobacco executive to be cast as the president and role model of any Jewish
federation." "On an ethical
level," Alfred Munzer, a lung specialist and president of the American
Lung Association told the New York Times, "a smoking executive
is not fit to be the head of a social welfare agency." [MILLER, NYT,
p. B3] In 1994, James Tisch's brother,
Andrew, who was then the CEO of Lorillard,
stated in Congressional hearings that the widespread scientific information
about the relationship between smoking and cancer "has not convinced
me that smoking causes deaths." [MILLER, NYT p. B3] "Several Jewish leaders," noted the Times, "who
opposed Mr. Tisch's nomination asked not to be quoted, saying they were afraid
that the Tisch family or the UJA-Federation might cut off their [economic]
support to their groups ... Most of those who protested said they were concerned
about the impact of the appointment [of Tisch] might have on the group's ability
to raise money." [MILLER, NYT, B3]
Tisch was formally approved as the Jewish
"role model" the next week.
In another ethical area, in the wake of
the much-publicized Anita Hill sexual harassment charges in 1991, the Jewish
Bulletin of Northern California ran a story written by the Associate Executive
Vice President of the National Jewish Community Relations Advisory Council,
Diana Aviv, and the Director of National Affairs for the American Jewish Committee,
Gary Rubin. They complained that
"sexual harassment is also rife within
Jewish communal organizations.
Since the [Hill] scandal broke, we have
been inundated with stories from
women who work within Jewish agencies,
anxious to share their
experiences of sexual harassment by lay
and professional men ... These
stories could be multiplied almost without
end. All the women we spoke
with believed that sexual harassment is
endemic and deeply engrained in
the Jewish community." [AVIV, D.,
p. 15]
An echo of this has long been a problem
in the psychotherapy and psychiatry worlds:
the sexual exploitation of vulnerable patients by predatory therapists.
Such fields, as evidenced earlier, are enormously overpopulated with Jewish
men. ["That vast apparative of putative concern, psychiatry, is largely
a Jewish monopoly." -- Kahn, Roger. The Passionate People, William
Morris, Inc., 1968, p. 53 / "All over the world, Jews are drawn to the
profession of psychoanalysis and psychoanalytic therapy. The 1990 roster of
the International Psychoanalytical Association reads like the membership list
of a synagogue." -- Earl Hopper, Psychotherapy and the 'Jewish Experience.'
European Judaism, Spring 1996, p. 17-25] Rapes
and other similar incidents are only sometimes reported by patients who have
the courage to complain to authorities. A 1994 Boston Globe article
noted the great scope of the problem, mentioning the cases against therapists
Martin Teicher, Arthur Reider, Lionel Schwartz, Joel Feigon, Jacob Goldberg,
Leonard Friedman, and others, including, in 1992, "several accused multiple
offenders -- Sheldon D. Zigelbaum, Edward M. Daniels, and Stanley S. Kanter
[who] either lost or gave up their licenses [to practice therapy] under pressure
... Though polls have shown that about 8 to 10 percent of psychiatrists admit
to having sex with patients, many experts believe the actual frequency is
higher, up to 25 percent. Many psychiatrists, they say, are not about to admit
to such a clear violation [of therapists' ethical codes], even anonymously."
[LEHR, 10-4-94]
Worse, as the Citizens' Commission on Human Rights noted:
"Although only ten percent of psychiatrists
admit to sexually abusing patients,
interestingly, 65 percent say new patients tell
them of being abused sexually
by their former psychiatrist. In other words,
the 10 percent figure can be
considered very, very low. In fact, in an article
from the March 12, 1990
edition of U.S. News and World Report,
experts put the figure at more
like 25 percent, or one out of every four psychiatrists.
And a 1973 study in
California puts the figure at an astronomical
51 percent!" [CITIZENS'
COMMISSION ON HUMAN RIGHTS, 2001]
This organization estimates that there are 150,000
women "sexually abused by psychiatrists in the USA." 21,000 try
to kill themselves, 1,500 DO kill themselves, and 16,000 end up hospitalized
because of the harm caused to them." [CITIZENS' COMMISSION ON HUMAN RIGHTS,
2001]
The innate difficulty of determining how
widespread sexual abuse is in psychotherapy is noted by Jeffrey Moussaieff
Masson: "Imagine attempting to find out how many men had raped by asking
nonconvicted rapists whether they were guilty of rape." [MASSON, p. 181]
In 1993, another Jewish sexual predator,
this one especially prominent, Dr. Jules Masserman, began making the news.
Masserman has been called "the most prominent psychiatrist in the world."
He had a resume of 432 articles and 16 books of his authorship. He was the
past president of both the American Psychiatric Association and the American
Academy of Psychoanalysts. He was also a vicious sexual predator, one who
"admitted that he, over his 50-year career, drugged and sexually molested
female patients in his office." [ROZNAFSZKY, p. 10F] Four women eventually accepted out-of-court
settlements of claims against him. Eventually, a dozen women came forward
to note similar sexual predations against them by Masserman. Former patient
Barbara Noel even authored an entire volume about her experiences with the
therapist, underscoring his control over her and the difficulties in getting
anyone to initially believe her stories against such a powerful man.
For years, therapist sexual abuse of patients
was kept hush in the secretive psychoanalytic community. As Jeffrey Moussaieff
Masson noted in 1988:
"[The sexual exploitation of patients
by therapists was] for many
years ... almost never mentioned, except
in private. I remember
that one of the first seminars I attended
when I was a candidate for
psychoanalytic training was given by an
elderly psychoanalyst from
Montreal, who immediately informed us that
a major part of his
clinical practice consisted of analysts
who had had sexual involvement
with patients. He told us ten students that
many of us, before our
careers were finished, would become sexually
involved with a
patient. Before the [1970s] decade was over,
an increasing body of
literature addressed the subject. One reason,
obviously, was that
there were a number of landmark cases in
which large awards
were made to individuals who sued therapists.
There is no sense
in pretending to the general public that
something never happened
which is in the newspaper." [MASSON,
p. 168]
By the 1970s, for example, the psychoanalytic
practice of John N. Rosen began making the news. Rosen was not obscure; articles
about his therapy theories had appeared in various scholarly realms by himself
and others. In 1983, he gave up his medical license rather than face trial
on 67 counts of violations of the Pennsylvania Medical Practices Act. As part
of "therapy," for example, patient Sally Zinman faced the following
outrages:
"Without a word of explanation, [Rosen]
and his main aide, an ex-
Marine, tore off all of her clothes except
her underpants and began
beating her on the face and breasts (the
aide held her down while
Rosen beat her). She was then tied to her
bed, still with no clothes
on, and kept her that way for 24 hours under
close guard ... [Therapy
also included Rosen] suggesting various
'delusions' to her and
fondling her breasts when they were alone
(often the sessions
were in groups), and once even her vagina."
[MASSON,
p. 136-137]
In the case of another patient, Janet Katkow,
Rosen "took off his pants and boxer shorts down over his penis and commanded
the plaintiff to suck on his penis." [MASSON, p. 138] This Katkow was
required to do "hundreds of times" over a seven year period. "This
is what it is all about, this is when a baby is at peace," he told her.
[MASSON, p. 141] This patient was also forced to lick his anus "and orally
take in as much of his feces as she could, which she did." Katkow was
also directed to have cunnilingus with another woman and have sex with an
impotent judge. [MASSON, p. 144]
Rosen also had "numerous sexual relations"
with patient Julia Blythe. Three other women eventually came forward with
similar stories of abuse. [MASSON, p. 145]
Jeffrey Moussaieff Masson, a former psychoanalyst,
became profoundly disillusioned with the field and notes, in his volume entitled
Against Therapy, the disturbing undercurrent of such stories, that
such abuses are part of a perversely authoritarian doctor-patient relationship
that is the foundation of the psychoanalytic world itself:
"Is Rosen an exception or is there
something about psychotherapy,
something in the very nature of psychotherapy,
that tends toward
abuses? A prison warden, a slaveholder,
and a psychotherapist have
in common the desire to control another
person." [MASSON, p. 147]
In late 2000, the Jewish Journal of Greater
Los Angeles noted with concern a number of newsworthy cases of sexual
abuse by rabbis:
"For those who look up to the American
Jewish clergy, it has not been a
good year. Last week, one of the Reform movement's
most prominent
rabbis was suspended from the rabbinical movement
for past sexual
misconduct ...Rabbi Sheldon Zimmerman, widely
respected as a
Jewish thinker and teacher, resigned as president
of the movement's
Hebrew Union College-Jewish Institute of Religion
... The wave of
incidents is refocusing on an issue that has
come into public view
only in recent years. In the past, rabbinical misconduct
-- particularly
sexual misconduct -- was rarely discussed publicly.
Many advocates
for victims complained that rabbinical associations
were more interested
in protecting their members than the people
they hurt." [WIESNER, J.,
12-15-200]
Also noted in the article is the sexual harrassment
"by the late charismatic Orthodox leader, Rabbi Shlomo Carlebach,"
a Reform rabbi in New Jersey who "allegedly hired people to murder his
wife," a "Conservative Cantor in the Chicago area [who] was arrested
... for alleged involvement in a prostitution ring," and a "New
York rabbi working for [the Orthodox Union's] national youth group [who allegedly]
sexually harassed and molested teens." [WIESNER, J., 12-15-00]
In 1996, a Los Angeles Jewish showpiece,
the Skirball Cultural Center and Museum (a $65 million cultural center created
by Israeli architect Moshe Safdie and founded by Israeli-born president and
CEO Uri Herscher), named Robert Kirschner as its Program Director despite
his past as the former rabbi of one of northern California's pre-eminent synagogues,
Temple Emanu-El in San Francisco. Kirschner resigned his rabbinical post there
in 1992 after four women (eventually a total of twelve) came forward with
complaints of the rabbi's sexual misconduct, "involving," he publicly
apologized, "sexual relations outside my marriage." At least three
of the women reportedly "reached settlements with the temple's insurance
policy." [LA TIMES, 11-2-96, p. B4]
In 2000, the Miami-Dade Public Schools district
paid a million dollar settlement to five women, four of them teachers, who
charged that Michael Exelbart, the principal of a school for the handicapped,
had sexually harassed them. Two had been "coerced" into sex, including
at the site of "a conservative Jewish temple in Kendall where Exelbart
was an officer." Exelbart wasn't fired, and continued to make $80,000
a year at another position. [KISSELL, T., 4-20-2000]
In April 2001, Jerrold M. Levy, a rabbi at Temple
Beth El in Florida, was arrested for "online solicitation of a juvenile"
over the Internet. The synagogue had hired him as an associate rabbi in 1992,
even though it was known by those hiring him that he had been arrested on
a past sex-related charge:
"Levi mentioned a prior arrest when interviewing
in 1992 for associate rabbi
at Temple Beth El in Boca Raton ... [He had
pleaded no-contest to ] a
sex-related case involving an undercover police
officer in St. Louis-area
public restroom ... Temple leaders decided to
give Levy the job anyway,
based on his record as a rabbi, lawyer and member
of their synagogue
community."
"He's a wonderful person," said David
Beale (the synagogue's vice-president for education and youth) after the rabbi's
arrest, "and he conveys love and Judaism to all who come in contact with
him." During the yearly Purim celebration, noted the South Florida
Sun-Sentinel, "Levy helped lead the service dressed as the cookie
monster." [KRAUSE, K., 4-6-01; HAHN, B., 4-9-01]
Two weeks later, in the Boston area, also in
April 2001, Eric Hindin was charged with "two counts of rape of a child,
two counts of indecent assault and battery, and two counts of statutory rape."
Hindin had sexually assaulted and videotaped the crimes with two boys, one
of whom "he was matched with through a Jewish Big Brother organization."
[ELLEMONT/TWAROG, 4-12-00]
In
1981, the four-term (1968-81) Brooklyn District Attorney, Eugene Gold, "announced
he would not seek re-election and planned to devote himself to Jewish charitable
causes." In 1983, he was charged with "unlawful sexual conduct"
in a hotel with a 10-year old girl. In return for probation, Gold pleaded
guilty and would seek "psychiatric treatment in Israel, where he had
a home." [NY TIMES, 10-21-83] In
1992, Sol Wachtler, "chief judge of New York state's Court of Appeals,
one of the most prestigious courts in the United States, resigned ... [He was] the central figure in a scandal involving sex, blackmail
and kidnapping threats ... Before his arrest, he was frequently mentioned
as a possible candidate for the governor of New York state." The object
of Wachtler's sexual attentions and threats was Joy Silverman (a former lover),
whose personal friend at the FBI put 80 agents on the case to nab him. [CHISHOLM,
P., 1992, p. 56]
In 1995, Frederick Werbell, a rabbi who
co-wrote "a best-selling Holocaust book" (Lost Hero: The Mystery
of Raul Wallenberg), pleaded guilty to "second-degree sexual abuse"
of his cleaning lady. "He sprang naked from the bathroom of his Eastside
apartment, grabbed his 39-year old housekeeper and fondled her." He had
earlier been sentenced to 17 months in jail for grabbing a woman he was interviewing
in his apartment for a job as a receptionist." [BREEN, 7-18-95]
In 2001, Rabbi Pinchas Lew, a Chasidic Lubavitcher (ultra-Orthodox),
"was arrested on misdemeanor assault charges
... after a woman accused him of
repeatedly touching his genitals in front of
her. The woman, a housekeeper in
Lew's home, reportedly said Lew had bolted all the doors
and that she feared
he planned to assault her. She managed to escape
through a back door ...
Lew, married with five children, led religious
study and frequently held
services in his home for college students ...
Members of the community had
had just learned of Lew's conviction for his
part in an Iowa armed robbery
10 years ago ... After the local community learned
about [this] incident,
more than 100 members of the local Jewish community
attended a meeting
to hear Lew talk about his criminal past. Coincidentally,
that meeting
occurred on the same day he allegedly assaulted
the woman in his home."
[FLEISHMAN, D., 7-3-01]
Lew is a member of a prominent Chabad family
-- "his father was second in command of Chabad in London, a key post
in worldwide Lubavitch." [BLOOM, S., 2001, p. 265] The national Chabad
community stunned the judge in providing the required $200,000 bond for the
arrested and jailed man. This, notes, Stephen Bloom, was based on the Jewish
tradition that "observant Jews are compelled to post bail that will allow
a fellow Jew 'imprisoned unjustly' to be released. Called in Hebrew pidyon
shevuyim, the 'ranson of captives' is a particular obligation of the Hasidic
community." [BLOOM, S., 2001, p. 253]
Lew's criminal accomplice was fellow Chabad
member Philip Stillman who robbed a smalltown popcorn vendor and shot a grandmother
at point-blank range after taking her money. Stillman reportedly accepted
an offer from two rabbis to accept a bribe to accept full blame for the crimes.
Lev, despite an original sentencing of ten years in prison, was merely put
on probation. The judge told a journalist that he was influenced and "impressed
by many of the Jews who came [to the Lew trial]. The courtroom had a significant
number of rabbis. They were very intellectual individuals. "If the crime
had stunned the locals [of Iowa]," says Stephen Bloom, "the double
standard of punishment for Stillman and Lev took their breath away."
[BLOOM, S., 2001, p. 255-256] Marion Bakken, the woman who was shot, survived
and was awarded $1.6 million as settlement for her injuries. She has never
been paid. [BLOOM, S., 2001,p. 274]
Secular Jewish journalist Stephen Bloom believes that
ultra-Orthodox disdain for Gentiles contributed to the robberies and attempted
murder:
"The attitude shared by many Postville
Hasidim toward the locals nourished
a destructive environment of contempt and scorn
providing a setting for Stillman
and Lew. While the Hasids would not encourage
unprovoked violence against
gentiles, their everyday us-against-them mentality
helped set the stage for two
cocky fellowers to fantasy into reality. For
more than a year, the Hasidic Jews'
imperious attitude toward the Postville locals
had stuck in my craw. As a Jew,
I was embarrassed by their take-it-or-leave-it
mentality." [BLOOM, S., 2001, p. 273]
In 1995, a rabbi's assistant, Yehuda Friedlander,
pleaded guilty to the charge of sexually molesting a 15-year-old girl sitting
beside him, alone, on an international plane flight. He had also had an earlier arrest for a sexual
crime in 1991. A rabbi with him, Israel Grunwald, the leader of New York's
Pupa ultra-Orthodox community, was also accused of sexually harassing the
girl. He remained under investigation as Friedlander accepted blame. According to the affidavit filed against both
men, substantiated by another passenger who witnessed the incident, Grunwald
first fondled the girl's breast, then exchanged seats with Friedlander, who
violated her further as she protested and resisted under a blanket, trying
to sleep. The two men were returning from Australia where Grunwald had lectured
about the Talmud. Later, "about 15 supporters from New York and Los Angeles,"
noted the Los Angeles Times, "attended the court hearings chanting
from prayer books as they waited for the proceedings to begin." [BOXALL/KENNEDY,
p. B1; and LOS ANGELES TIMES, 11-1-95, p. B4]
In 1999, Ze'ev Kopolovitch, a rabbi and
the principal of Netiv Meir, an all-male yeshiva high school in Israel, was
accused of sexually abusing 19 students from 1991-1997. The most disturbing
part of the case, noted the Jerusalem Post, was that "investigators
say Kopolovitch's alleged behavior was known within the school for several
years and tolerated by the governing hierarchy of the religious Zionist movement."
[GROSS, N., 1999, p. 28]
In 2001, a "part-time synagogue sexton"
in Jerusalem was convicted "for sexually assaulting children who went
to synagogue to pray with him ... At least three children were involved, with
one, the 13-year-old, being the son of another synagogue official. That boy
was so disturbed by the sexual abuse that he took up drugs, and the sexton
then exploited that knowledge to blackmail the youth into more sexual intercourse.
The other two children were subject to his fondling, often on the back porch
of the synagogue dduring prayers, in exchange for sweets." [REINFELD,
M., 6-22-01]
In 2001, Chabad rabbi Mordechai Yomtov, a teacher
at Cheder Menachem grade school in Los Angeles, was jailed on $500,000 bail
for "ten felony counts of committing lews acts with children ... Yomtov
was keeping [three boys] alone in the classroom and molesting them while the
other children were at recess." [FAX, J., 12-14-01]
In 2000, John Douglas Wynn was arrested
for molesting a 12-year old boy in the spa at California's Palo Alto Jewish
Community Center. [SAN FRANCISCO CHRONICLE, 5-18-2000, p. A18] In 2000 an
unnamed young Jewish woman came forward to press criminal charges against
Rabbi Baruch Lanner, the religious director of the National Conference of
Synagogue Youth (NCSY), an Orthodox youth group. She claimed she was molested
by Lanner on a daily basis for eight months beginning in 1995. [ROSENBLATT,
G., 7-10-2000, p. 9] Lanner, noted the Jewish Week,
"is widely regarded as one of the most
brilliant, dynamic and
charismatic educators in Jewish life today
... Reports have continued
to circulate that he has harassed, if not
abused, many scores of
teens sexually, physically and/or emotionally,
from the early 1970s to
the present ... Those who have elected to
tell their stories say they are
motivated by anger and frustration over
the refusal of the OU, the
national central body of Orthodox synagogues,
to act decisively on
repeated complaints about Rabbi Lanner's
behavior." [ROSENBLATT,
G., 6-23-2000]
In 2001, two U.S. Congressmen, Tom Lantos and
Edolphus Towns were "snookered" into defending an Argentine yoga
school against alleged "anti-Semitic" elements (about "50 percent
of those involved were of the Jewish faith"). Towns introduced a formal
resolution condemning "discrimination against youga enthusiasts by the
Argentine government. In the resolution he linked bombing of a Jewish center
in Buenos Aires six years ago to a long pattern of Argentine anti-Semitism."
As Insight on the News notes, however,
"The Congressmen may have been snookered
by those accusations of anti-Semitism.
Their lofty resolution failed to mention
some of the other 'practices' of the Escuela
de Yoga. According to reports, the learning
center, run by a certain Juan
Percowicz, teaches lessons that are 'sui
generis,' in that thye involve practices
that most people would call 'sexual freedom.'
There have even been some
allegations of child exploitation, which
local police were compelled to
investigate. Since its founding in the
1980s, the school has been raided
by the police more than 300 times. Other
charges brought against it include
assault and petty larceny." [NICHOLS/SPUN,
12-7-01]
From Israel, in 1998, 19-year old model
Linor Abargil was named "Miss World." Seven weeks earlier she had
been raped at knife-point by an Israeli travel agent, Shlomo Nour. [USA TODAY,
1-20-99] "The 51st year of the
Jewish state," noted the Jewish Advocate, "seems to be shaping
up as the Year of the Sexual Assault. Or perhaps, more properly, the year
when sexual assault is coming out of the closet. Coming out with a vengeance.
In the first six months of 1998, rape was up 22% over the previous year ...
Teen rape, child rape, homo-sexual rape, rape in the military, intra-family
rape, we run the gamut." [MOTRO, H., p. 10]
In 1999, an "expanding" sexual harassment scandal broke out
in the Israeli Ministry for Religious Affairs, centering on the division's
comptroller, Yehiya Paruz. [SINAI, 1999] That same year, the Los Angeles
Times noted that "Long a taboo topic, or dismissed as something women
simply had to put up with, sexual harassment in the [Israeli] military is
now openly discussed in Israel, thanks to high-profile cases, new rules and
a handful of crusading activists. More and more women are coming forward to
denounce abuse." [WILKINSON, T., 12-1-99, p. A1]
In 2000, the head of the Defense Ministry's
publishing unit, Amnon Tzabari, was charged with sexual harassment for "performing
lewd acts on four female workers in his office." This followed disciplinary
actions against "long-time ministry spokesman" Dan Weinrich and,
in a separate case, the head of the Defense Ministry's media section, Shachar
Halevi. "The situation became so bad," noted the
Jerusalem Post,
"that ministry Director-General Arno Yam gathered all senior officials
and warned he was going to uproot the phenomenon." [O'SULLIVAN, A., 9-8-2000]
In 2001, a parliamentary aide to Israeli MK (member of Knessset/Parliament)
Ayoub Kara publicly accused him or raping her. Ayoub is Prime Minister Sharon's
"liason to Israeli Arabs." [JERUSALEM POST, 2-28-01] In 2000, Israel's
Transport Minister, Yitzhak Mordechai, "who deputizes for [Israeli Prime
Minister Ehud] Barak in his absence, suspended himself pending an investigation
into accustions that he sexually assaulted a female civil servant." [REEVES,
P., 3-8-00] In 2001, the director general of the Israel Journalists' Union,
Tuvya Sa'ar, was "arrested on suspicion of having intercourse with a
minor and coercing her for sexual favors ... In one instance ... he is suspected
of promising the girl an appearance on the TV channel for children because
of his connections there." Sa'ar is the former director of Israel TV.
[ARBELI, A., 8-15-01] Along these general themes, see also historical Jewish
pre-eminence in the international prostitution trade,
and Jewish dominance of the pornography business (in the
Mass
Media chapter]
Another ethical in-house controversy in
the Jewish organizational community -- in this case, involving environmental
morality -- arose in Houston when Charles Hurwitz, a UJA-Federation official,
was noted for his role as a majority stockholder in
Maxxam, the company that owns Pacific
Lumber which environmentalists were fighting for its plans to cut down
some of the last remaining old growth Redwood trees on private land in California.
As Benjamin Stein notes, "Charles Hurwitz's catastrophic takeover of
Pacific Lumber.... resulted in some of
the worst environmental atrocities of all time against first-growth redwood
trees." [STEIN, B., p. 114]
Hurwitz's Maxxam rules over 110 subsidiaries, including
Kaiser Aluminum, McCullough
Oil, and Simplicity Patterns.
By 1999, Hurwitz had spent $20 million defending himself against two Federal
agencies, government lawsuits that charged that "Texas billionaire Charles
Hurwitz bought Kaiser Aluminum with
money made while illegally driving a savings and loan into bankruptcy."
Hurwitz had purchased United Savings
of Texas in 1984, "raided it for cash," and then let it fail
in "reckless disregard for the law." The failure cost U.S. taxpayers
$1.6 billion. [STEELE, K. D., 10-31-99, p. A1]
In 1999, environmentalists created an activist
alliance against Maxxam with a
steelworker union which had begun a strike against
Kaiser. "I don't think there's a corporation anywhere else in
the U.S. that's at the epicenter of so many social issues as
Maxxam," said steelworker union official
David Foster. [BORRESON, S., 1-3-2000]
Then there is David Koch. Koch heads Koch Industries,
"a conglommerate with major oil and gas
holdings, [which] is the second-largest
privately-held company in the United States.
It is also the recipient of the largest civil
fine ever imposed on a corporation for violating
federal environmental laws. During
the 1990s, the company's leaky pipelines were
responsible for more than 300 oil spills
in five states ... Last fall, Koch Industries
and four employees were indicted on 97
counts of violating federal clean air and hazardous
waste laws. Government
prosecutors accuse the company of intentionally
releasing fumes from benzene
-- a suspected carcinogen -- into the atmosphere
and then lying about it to state
regulators in Texas. If convicted, the company
could be fined up to $352 million."
[MOTHER
JONES, 5-3-01]
Samuel Heyman owns 98% of the giant manufacturing firm GAF.
As Mother Jones magazine noted about the company:
"Last year, if the Asbestos Compensation
Act had passed Congress, Heyman would
have profited handsomely from his anonymity.
The bill -- drafted by a Harvard law
professor hired by GAF -- would have denied
or delayed compensation to thousands
of victims of asebestos-related diseases, cost
tax-payers as much as $150 million
a year, and provided 'unwarranted benefits to
asbestos companies,' according
to the U. S. Justice Department. As a former
manufacturer of asbestos-laden
building products, GAF found itself in a crushing
legal avalanche.' [MOTHER
JONES, 5-3-01]
Likewise, in the pantheon of prominent Jewish
organization leaders, there was the case of (the Jewish) Moment magazine's
"donor of the month," Bernie Marcus, for his donation of $15 million
to the Atlanta UJA fundraising campaign. Marcus, the CEO of
Home Depot, only weeks earlier lost an
Oakland jury verdict of $1.6 million in damages against his company for "sexual
discrimination and retaliation." A class action lawsuit for $65 million
also was settled against Home Depot
for sex discrimination. [ARON, M.] "A trustee-for-life of the
Atlanta Jewish Federation," notes Mother Jones magazine,
"Marcus says he has integrated Judaic principles
into what he likes to call the
'Home Depot family.' For him, helping people
understand Judaism is a matter
of marketing. 'I think a lot of it has to do
with selling,' he says, 'You've got
to sell the beauties of Judaism." [MOTHER
JONES, 5-3-01]
In March 1998, the head of the World Jewish
Congress, Edgar Bronfman, also president and CEO of the family-controlled
Seagram and
Universal Studios, was awarded a conspicuously
dubious honor (the Seagram fortune was built to power by the Bronfmans
during prohibition, with considerable collusion with Detroit's criminal Jewish
Purple Gang who smuggled alcohol over to Windsor).
"A bipartisan political group," noted the Financial Times
of London,
"launched a new campaign aimed at embarrassing
one of the leading
lights of the entertainment business. The
first ever "Silver Sewer' award,
in recognition of its 'outrageous contribution
to the degradation and
coarsening of our culture and its unswerving
dedication to the pursuit
of profit above principle' [was awarded
in abstentia to Bronfman]."
[BAKER, G., 3-21-98, p. 2]
Of particular note to the judges was the
Bronfman ownership and promotion of the decadent The Jerry Springer [who is
Jewish] Show on television and Marilyn Manson, "perhaps the most shocking
of the 'shock rock' groups." William Bennett, a former cabinet member
in the Reagan and Bush White Houses, decried Seagrams as "the leading
perpetrators of cultural rot" in America. [BAKER, G., 3-21-98, p. 2]
Seagrams is noteworthy for many dubious honors, including the fact that in
1997 it "started airing TV commercials for its Crown Royal Whiskey in
scattered markets across the United States. The commercials broke a voluntary
ban on television advertising that the liquor companies had imposed on themselves
in 1948." [FINANCIAL TIMES, 4-7-97] [More about the Bronfmans and Springer
later]
In 2001, Irv Rubin, head of the Jewish Defense League,
and an associate, Earl Krugel, were arrested by the FBI for plotting to bomb
the Los Angeles King Fahd Mosque and the office of Arab-American Congressmen
Darrell Issa. [DEUTSCH, L., 12-12-01]
In 1997, the United Jewish Appeal went out
of its way to shame the Jewish community by awarding its "Humanitarian
of the Year" award to (non-Jewish) media mogul Rupert Murdoch at a fund-raising
dinner that raised $2.3 million for the organization. Mother Jones
magazine wondered about the surreal moral reasoning behind the award: "The
media baron is better known to labor and human rights groups for his union-busting
and for catering to the Chinese government (in 1994 he yanked the BBC off
his Asian satellite network because officials in Beijing were angered by its
reporting on Chinese human rights violations)." [MJ, 9/10-97, p. 18]
"By what criteria has the UJA chosen
the worldwide robber baron for this years' award over, say, Radovan Karadzic
[accused of war crimes in Bosnia], or perhaps Larry Flynt [the pornographer]?"
wondered Eric Alterman in the Nation, "... Murdoch was chosen,
the UJA says, for his 'longtime support of the security of the state of Israel,
his friendship for the Jewish people, and his support of UJA.'" [ALTERMAN,
p. 6-7] The Australian-born Murdoch
had earlier been honored in 1982 as the "Communications Man of the Year"
by the American Jewish Congress. He was presented that award by AJC president
Howard Squadron, who was also Murdoch's American lawyer, his guide to visit
right-wing politician Ariel Sharon in Israel, and an opinion page writer for
Murdoch's New York Post. [GOLDSTEIN, T, p. 69; KIERNAN, T., 1986, p.
262] "The Jewish national cause is one that is extremely important to
me, to my family, and to my company," Murdoch told the UJA audience,
"... We're also in Israel [Murdoch has investments there] because of
my faith in the integrity and worthiness of the Zionist undertaking. I have
been accused of being pro-Israel, pro-Zionist, pro-Jewish -- charges to which
I plead guilty." [LEON, M., 7-4-97, p. 16]
Matti Golan, a former Israeli government
official, calls the massive American Jewish organizational ring to raise money
for itself and Israel the "Money Machine." American Jews, notes
Golan, have
"created a ruthless, well-oiled
machine whose only aim is to collect
money and ... will do anything to
do so. Every year [American Jewish
leaders get] a higher quota to meet and ... stop at nothing
to meet it.
If you can't meet your quota, you're
out. The only gauge of success,
the one bottom line, is how many dollars
you've brought in."
[GOLAN, p. 65]
In 1999, Jewish billionaire Henry Samueli
was presented an award by a prominent Jewish American organization. As the
Los Angeles Times noted this honor,
"The Orange County chapter of the American
Jewish Committee will
present him with its National Human Relations
Award ... He's happy
to be honored, Samueli said, but he was
surprised to find out that a
donation to the Committee was part of the
package." [CONWAY, A.,
4-13-99, p. E1]
Even Alan Dershowitz concedes that "Jewish
organizations sometimes honor the wealthy without inquiry into the sources
of their wealth. We sometimes do not make the effort to see what is plainly
before our eyes. We are blinded by the facade of money ... " [DERSHOWITZ,
Chutzpah, p. 307]
This
worldview, so common in the Jewish community, was heralded as an emulative
value for Americans at-large in 1995 by a Jewish professor at the University
of Chicago, Daniel Fischel, who espoused it -- not surprisingly -- in his
book, Payback: The Conspiracy to Destroy Michael Milken and His
Financial Revolution, published prominently by HarperCollins. Fischel's
introductory paragraph to begin his defense of Milken's vast corruption machine
deserves to be quoted in full, as sum of both his book and a widespread moral
vacuousness so much at stake here:
"Why have the 1980s been so uniformly
condemned as the 'decade of
greed?' For that matter, what does this
disparaging characteristic even
mean? The decade's many critics who pontificate
against evils of greed
have seen no need to define the term. Dictionary
definitions of greed --
'inordinate desire for wealth' or 'wanting
more than one's proper share' --
provide no help but merely restate the
question. What is 'inordinate
desire for wealth, or the dividing line
between one's 'proper' or
'improper' share? With no answers to these
questions, how can we
possibly know when an individual, let alone
a whole country, is guilty of
'greed?' And even if we could somehow identify
'greedy' behavior, why
should we care?" [FISCHEL, p. 1]
[See
also Chapter 23 for much more evidence on the theme
of
the expression of Jewish ethics]