Chayolei HaGanovim: Money Laundering Scheme

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Yaakov Spritzer and Shlomie Rutman are using Camp Chayolei Hamelech [a.k.a. Summer Recreation for Children Inc. and/or The Kings Soldiers Inc. [Corporation 3685688] and ‘United Jewish Childrens Fund’ [UJCF -EIN:113576046] to launder money.

Reviewing the 990 form submitted for UJCF from 2007-2008-2009 and 2010 (click here to review), you will find that a large sum of the Organizations money comes by way of ‘Contributions, gifts and grants’ which then goes to the camp, owned and operated by Spritzer and Rutman.

For example: In 2009 Rutman filed in his 990 (Page 1 bellow) the amount of $256,659 as ‘Contributions, gifts, grants, and similar amounts received’ and $93,430 as ‘Program service Revenue, a total of $350,089.

A few pages later on the 990 form we find that this money is then “donated” to none other than their own camp Chayolei Hamelech.

WIS believes that  Spritzer and Rutman are “donating” funds from the business (A One-Merchandising) to the Non-For-Profit (UJCF) which in turn goes back to the camp which belong to them and which then goes out in the way of salaries to themselves.

Rutman marks off on the 990 that they “provided scholarships for approximately 300 underprivileged children in the amount of $163,260.

As a long time resident of the Crown Heights community WIS believes this statement is straight out false.
At no point in time has the camp owned and managed under Rutman- and Spritzer ever had 300 children, at their biggest peek they MAY have had 150. Today they maybe have 50-60 children tops. (Although the lunch program might be under the impression that they currently have 150-200 campers).

It is not known in the community that if one is in need of a scholarship for camp that the place to go is Rutman – Spritzer. They rarely advertised this and in recent years they haven’t advertised at all.

In short: Rutman and Spritzer do not provide any service to the community. They are holding on to the camp for personal gain. They are using the camp as a Chanel to launder money.

You’ll wash my dirty laundry I’ll wash yours.

This is also the reason the corrupt Cabal at the Crown Heights Jewish Community Council, Inc. did everything they can to make sure the camp ends up in Spritzers hands. This is the reason Mendel Hendel does business and supports Spritzer, they’re all in the dirty laundry business.

List of Officers, Directors, Trustees, and Key Employees. Notice all family members.
Yehuda Spritzer (Yaakov Spritzer son) as trustee.
4 Kelly CT, Monroe Township, NJ 08831
Shlomie and Raizel Rutman (Spritzer daughter and son-in-law) as trustees.
534 Montgomery Street.

‘United Jewish Childrens Fund dba The Kings Soldiers’
Mailing address: 534 Montgomery Street. Brooklyn, NY
Office Address: 319 Kingston Ave. Brooklyn, NY (718) 221-0770
Web-site: ujcf.org

Fun Fact: Shlomie Rutman who is unemployed year round has managed to purchase two homes.
529 Montgomery Street. Brooklyn, NY 11225 and 534 Montgomery Street. Brooklyn, NY 11225

Do your own research and get back to us with what you find:

Form 990 Filings for United Jewish Children’s Fund:
2010: Download
Notice: 1. that 2010 is currently incomplete. 2. 990 for summer of 2011 unavailable (one year later).

2009: Download

2008: Download

2007: Download

Coming Up Next: What Is ‘Project Care’?

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26 Responses to “Chayolei HaGanovim: Money Laundering Scheme”

  1. Ex-Employee Says:

    When it comes to Spritzer business ‘A-One Merchandising’ I noticed that… Spritzer runs his business on COD and does not report all his earnings to the IRS. Spritzer only deposits what he needs to pay his bills.

    In addition Spritzer buys his merchandise from what they call the ‘Gray area’ or the back market (stolen trucks).

  2. CPA Says:

    They even went as far as to create an official neutral, save looking web-site to appear more legit. Now thats an investment worth making.

  3. lunch program scam Says:

    Another thing in regards to the lunch program.

    How do they get away with “having” 150-200 campers, when in fact they have 50?

    1. They keep the names from previous years and give this in to the Department of health.

    2. They have other programs (like the Cincinnati Yeshiva) renting on their grounds and therefor can get away by claiming that these are campers on the list.

    3. They can pass campers who were not eligible for the program as those campers that they put on the list.

    4. When inspectors come they either
    a. tell them that most of the camp went on a trip.
    b. if they know in advance that inspectors are coming they will have Mendel Hendel bring his school (ohr menachem) for a few days.
    c. they say that lunch time is divide up (different times) and just bring the kids back with different clothing.

  4. Judge Leo. Glasser: A matter for the United States Attorney to look into Says:

    TRANSCRIPT OF PROCEEDINGS
    BEFORE THE HONORABLE I LEO GLASSER
    UNITED STATES DISTRICT JUDGE
    Case No. CV-97-2550

    September 10, 2001

    (PAGE 26)

    THE COURT: And if my recollection of the voluminous
    pieces of paper which have descended upon me over the past few
    years is correct, there have been more than one complaint by
    the defendants of the failure of Mr. Spritzer to provide
    documents which they have requested, more specifically bank
    records.

    I think I’ve had occasion to make the observation
    once before that there are matters in this record which might
    appropriately be called to the attention of the United States
    Attorney because my recollection is that there were
    representations made by Mr. Spritzer to banks and perhaps the
    federal agencies regarding monies which he has contributed,
    monies which he invested, things of that sort which are
    totally inconsistent with other statements which appear in
    this record and which have been made under oath. I’ve never
    pursued that reference to the United States Attorney but I
    recall having made the observation on more than one occasion
    that that might not be an inappropriate matter for the United
    States Attorney to look into.

    So that we have requests which were made of
    Mr. Spritzer for bank records. Mr. Kaplan having reviewed as
    much material as he has been able to review within a limited
    period of time indicates that there is a very serious lack of
    the information reflected in the 990s, or whatever the number
    of that document is.

    ——————————————–

    Lucky for Spritzer and unfortunately for over 3,000 Americans, the very next day was September 11, 2011.

    It could very well be that the Judge did not send anything to the United States Attorney as a result of the 9/11 attacks which disrupted everything.

    Even had Glasser sent the above information to the United States Attorney, it could very well be as a result of the 9/11 attacks this issue was shoved under the pill and eventually lost lost. We will never really know.
    By the time anybody would have time to look into the matter, the statue of limitation would have expired.

    But I say…Spritzer is a corrupt person to the core, it’s who he is. If he did funny business then, hes doing it now.

  5. zal Says:

    And here i naively thought it was all about the children and brainwashing them with yechi jihad nonsense . nu, we learn new things everyday.

  6. Eli Palorack Says:

    Spritzer is a hero in the OUR community.

  7. Another CPA Says:

    This is explosive stuff.

    if you don’t have it already, you should search for the 990 for Chayolei Hamelech or whatever legal name they go by, and match the numbers. It could be that there they are doing the same thing, donating to their own camp and then taking it out the other way.

    • WhoIsShmira? Says:

      I did an extensive search on-line and could not find any records for Chayolei Hamelech Inc. a.k.a. Summer Recreation for Children Inc. and/or The Kings Soldiers Inc., I can’t find a EIN number for this entity, which I think is very strange.

      The Spritzer may be smirking at this news, perhaps this is another scam they are pulling, but they won’t smirk for long, I will get to the bottom of this, I won’t rest until I do!

      • antimesira Says:

        Page 16 of the 2010 -990 has EIM number for Chayolei Hamelech
        71-1017431

      • WhoIsShmira? Says:

        Good eye. Thanks for actually taking the time to review the documents. However, even with the EIN number I still can’t find anything on-line. The search will go on.

  8. Rats in the house Says:

    For year and years Yankle Spritzer has been doing Shtick, meaning illegal activities. Yet he keeps walking away from it, it doesn’t make any sense, unless and I’m really starting to believe this, could Spritzer be a government informant? Is the government protecting one of their rats?

  9. Moshe K. Says:

    In order to see the bigger picture you need Summer Recreation for Children (Chayolei Hamelech) tax return s and also who owns the actual camp property, whose name do they have down as the owner of the camp.

  10. ANOTHER CPA Says:

    You forgot one part, that Rutman gets the money from the government
    and takes all the money from the campers (Tuition) to his pocket.

    There is no other reason why he would transfer money from his corporation unless he is making off out of it.

    Let’s take the 2010 -990 for example:
    Rutman writes in that he got from the government 195K and other donations 250K, he then gets a charity exemption from the entity on the 250K donation. Now the money is gets transferred to chayolei Hamelech, but where does all the tuition money go?

    Rutman claims that each grant is about $3500, there is no way he is depositing this money from the campers into chayolei, because he has to use the grant money. Rutman can’t leave it there that’s why the profit is only 35K, he has to empty it out.

  11. fun and games Says:

    You are definitely on to something here. Using this so-called “not for profit” camp for personal gain and money laundering goes back to the old days of Machne Menachem (when spritzer was in charge). Anyone who took the time to read Judge Glasser’s full report would see that Shreiber was very busy transferring stocks up to that camp and then selling them off through accounts under the camp name – tax free, I’m guessing. The judge tried to get answers about those stocks, but Shpritzer and Shreiber didn’t co-operate . Judge Glasser clearly knew there was criminal activity – that is why he says all this info should be taken to the Attorney General – just read the full report for yourselves.

  12. NOTICE Says:

    Also notice on whats marked ‘A few pages later’, by ‘Donee’s Relationship’ it states NONE.

    Rutman is the director of Chayolei Hamelech and chairs the UJCF entity if thats not related then what is?

  13. Lies And Deceit Says:

    THE FOLLOWING IS A TRANSCRIPT FROM A DIN TORAH (LEGAL PROCEEDING IN A COURT OF JEWISH LAW) ON JUNE 13, 1996.

    0:01 – YAAKOV SPRITZER: IN ORDER FOR IT IT SHOULDN’T LOOK LIKE THAT YOU HAVE NEPOTISM, A PERSONAL TEVIYAH (HERBREW TRANSLATION: CLAIM) THAT NOBODY CAN HIRE HIS IMMEDIATE FAMILY TO WORK IN CAMP FOR PAY. YOU CAN BRING YOUR IMMEDIATE FAMILY THERE, BUT IT SHOULDN’T LOOK LIKE THAT YOU HAVE A PERSONAL TEVIYAH ( HEBREW TRANSLATION: CLAIM ) IM NOT TALKING ABOUT NEPHEWS OR NEICES, OR OTHER PEOPLE. AND I DIDN’T HIRE MY NEICE IN CAMP, KAHANOV (CAMP DIRECTOR AT THE TIME) HIRED, I DIDN’T KNOW SHE WAS IN THE OFFICE UNTIL I CAME THERE. SHE HAPPENS TO BE MARRIED TO MY NEPHEW AND HAS NOTHING TO DO WITH ME. I DIDN’T HIRE ANYBODY. MY KID WORKED LAST YEAR IN CAMP AND I B’FEIRUSH (HEBREW TRANSLATION EXPLICITLY) TOLD HIM HES NOT GETTING PAID. AND THIS YEAR HES GOING TO BE A COUNSELOUR IN CAMP AND I TOLD HIM WE HAVE A POLICY THAT CHILDREN OF VAAD (BOARD) MEMBERS CAN NOT GET PAID AND I TOLD HIM HES NOT GETTING PAID. MY OLDER BOY WANTS TO COME TO CAMP I TOLD HIM HES NOT GETTING PAID SO HE SAYS IM NOT COMING TO CAMP TO GET MONEY, IM COMING TO CAMP TO HELP OUT. THIS IS ONE POLICY THAT WE MADE. ANOTHER POLICY THAT WE MADE WAS

    0:44 – MEIR HERSHKOP: (TRANSLATION FROM YIDDISH) PLEASE YAKOV SAY IT AGAIN. NO I WANT THE RABBIS TO INFORM HIS CHILDREN

    0:49 – YAAKOV SPRITZER: WHICH PART?

    0:51 – MEIR HERSHKOP: ABOUT THE PART THAT WHEN HIS CHILDREN COME TO CAMP THEY SHOULDN’T WORK FOR MONEY AND THEY ARE COMING. FINE SAY IT AGAIN

    0:55 – YAAKOV SPRITZER: MY SON LAST YEAR DIDN’T GET PAID, YOSSI, AND HE WAS A COUNSELOR FOR THREE HUNDRED AND FIFTY DOLLARS, AND HERE HE IS THE ONLY ONE IN CAMP LAST YEAR THAT DIDN’T GET PAID.

    1:05 – MENDEL HERSHKOP: MY SON DIDN’T EITHER GET PAID, HE WASN’T THE ONLY ONE

    1:08 – INAUDIBLE.

    Funny how things ended up. Even the Rightful (majority) directors and owners could not work and get paid in their own camp. Except of course for Spritzer and his family.

    • MachenMenachem Says:

      Since the above clip came out, Spritzer, his family and business have received over $500,000,00 in addition to the above from Machne Menachem funds.

      Rutman alone took from the Machne Menachem account $400,000,00

  14. Two Diff Corporations Says:

    1) Summer Recreation for Children Inc.

    https://www.corporations.state.pa.us/corp/soskb/corp.asp?2500186

    2) THE KINGS SOLDIERS – CHAYOLEI HAMELECH INC.

    https://www.corporations.state.pa.us/corp/soskb/Corp.asp?2507745

    • Scam Says:

      What they are probably doing is getting programs from both states, New York and Pennsylvania, this is why there are two corps. Rutman does not tell one state that hes taking programs for the other.

      They are playing around with the corporations and names.

      Bottom line, they are making a killing of their scam.

  15. ANOTHER CPA Says:

    Interesting that on 2008 and 2009 it’s different than the one in 2010 it’s said there Educational Chayolei Hamelech. did you come across this Corp ?
    Also they state the UJCF donor has not relation to the donee how come both Corp. has the same directors?

  16. 2007 990 Says:

    In the 2007-990 notice page 17, Rutman uses his non-for-profit to pay for his (own) children’s school and camp tuition.

    Rotman is paying tuition through the fund he pays Ohr Menachem, Bais Chaya Mushka, and Camp Emuna.
    Which needy scholarship did the fund provide in those institutions?

  17. 2008 990 Says:

    2008 page 13

    Whats EDUCATIONAL CHAYOLEI HAMELECH $113,500

    why the name change? Is Rutman opening closing corporations yearly (with slight name changes)?

  18. It's all in the name Says:

    Notice how Spritzer never puts his own name down, it’s always someone else.

  19. Nonprofits Used For Money Laundering Says:

    Nonprofit organizations are increasingly serving as a vehicle for money laundering, the Registrar of Associations asserts.

    This claim was included in the explanatory notes to a draft bill that would give the registrar new powers to regulate nonprofits and impose administrative sanctions on those that break the rules.

    The bill will be submitted to the Knesset next month as part of the Economic Arrangements Bill accompanying the budget.

    In its notes, the registrar wrote that since 2005, the number of registered charities has ballooned from about 5,000 to 31,136. Some of these, it said, are being used to launder money.

    The registrar is seeking new regulatory powers in response to the massive fraud discovered earlier this year at the Hazon Yeshaya charity.

    In April, 10 employees of the charity, including its director and founder, were arrested on suspicion of perpetrating a multimillion-dollar fraud. Specifically, the charity allegedly sold food for cash instead of distributing it to needy Holocaust survivors as it told both its donors and the registrar it was doing.

    The subsequent police investigation found that about two-thirds of the organization’s income stemmed from selling food to other organizations, with no supervision, though such activity wasn’t authorized by the organization’s bylaws.

    The millions of shekels it thereby earned from other Israeli organizations were then listed in its financial statements as donations from abroad to hide the fact that it was selling food.

    Altogether, Hazon Yeshaya had a turnover of more than NIS 40 million a year, including grants of NIS 2 million from the government and NIS 250,000 from the Jerusalem municipality.

    The registrar suspects that Hazon Yeshaya isn’t the only organization involved in such shenanigans. “There are organizations that exploit the benefits given to the third sector for the purpose of money laundering,” the explanatory notes assert.

    If the bill passes, the registrar would be given the power to overturn the decisions of an organization’s General Assembly, if they were made improperly.

    It would also be able to replace an organization’s officers or senior employees, bar an officer from founding or becoming an officer of another organization for a specified period of time, and assign supervisors to an organization from among the staff of the Israel Corporations Authority (of which the registrar is a branch ).

    Authority staffers would be given investigative powers, and the registrar would be able to impose financial sanctions on both errant organizations and their officers.

    Yet the registrar already has fairly substantial powers that go largely unutilized.

    It can strip organizations of their certificate of good governance, which is necessary for tax-exempt status; force them to institute a recovery program; assign an accountant to oversee them; or even order them liquidated. But it rarely does so.

    In 2007, for instance, its accountant general published a scathing audit report on Elad, the nonprofit that runs Jerusalem’s City of David national park and also works to settle Jews in East Jerusalem.

    Among other things, the report said that Elad had failed to correct the problems noted in the previous audit, and continued to transfer money to other associations, or to companies owned by other associations. It also found that the organization had no internal auditor, despite the large scale of its activities.

    Yet Elad continues to receive government funding and good governance certificate to this day.
    Also in 2007, police launched an investigation into the Chabad youth organization.

    After receiving the findings of this probe, the registrar demanded that the organization correct numerous problems and prepared a recovery program for it. Nevertheless, it did not withhold the organization’s good governance certificate.

    Yet another example was published in Haaretz just this week: Senior officials at Bank Hapoalim approved donations by the bank’s charity, Poalim Bakehila, to other organizations in which those same senior officials, or members of their family, were involved.

    That creates a clear risk of conflicts of interest.

    Yet once again, the registrar declined to withhold the organization’s good governance certificate, accepting its assurances that all this was in the past, and that the problem wouldn’t recur.

    But regardless of whether or not the new powers will actually be used, charities are planning to fight their enactment, said Uriel Lederberg, director of an umbrella organization of nonprofits called the Israeli Civic Leadership Association.

    “There are a handful of organizations that stray; this isn’t the norm,” he said. “Thieves should be dealt with by the police, not the Registrar of Associations.

    The explanatory notes to the bill are outrageous. They view the third sector with suspicion. This isn’t a trend; it’s a few isolated cases.

    “There are more thieves and criminals in the business sector,” he added. “The third sector is the most moral sector of all, and its human capital is the most moral and modest.

    What’s the basis for the claim that nonprofits have become a pipeline for money laundering? Why do they think nonprofits can launder money better than the business sector?

    “In our view, this is a law that bypasses the legal system, and which they’re planning to discuss in a blink as part of the Arrangements Bill.

    The Registrar of Associations has enough powers today, yet it’s seeking police powers for itself. If they have suspicions, let them go to the police.”

    The Finance Ministry decided to include the registrar’s clause in the Arrangements Bill as part of its broader war on the underground economy and money laundering, declared in part in an effort to reduce the government’s budget deficit.

    The registrar said it is “not interested in commenting” on the matter. The treasury said that work on drafting the 2013 budget “is currently at its height, so we aren’t commenting at this stage.”

  20. Yaakov Spritzer and Shlomie Rutman Money Laundering Scheme « Machane Menachem Says:

    [...] Read about it on here – chleaks.com: Chayolei HaGanovim: Money Laundering Scheme [...]

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