Apr 1, 2011

http://www.dailyrecord.com/article/20110401/NJNEWS14/104010324/2-men-indicted-in-money-laundering-scheme-involving-Solomon-Dwek

A Brooklyn rabbi and the operator of a charitable organization were indicted Friday by a federal grand jury on money-laundering conspiracy charges involving government witness Solomon Dwek.

Rabbi Lavel Schwartz, 59, and David S. Goldhirsh, 29, both of Brooklyn, were charged with one count each of money-laundering conspiracy and 12 additional counts of attempted money-laundering, based on specific transactions that happened between May 2008 and July 2009, U.S. Attorney Paul J. Fishman said.

The indictment also charges both men with one count of operating an illegal money-transmitting business. Fishman said the men had laundered money for former Ocean Township developer Dwek, who became a government witness shortly after he was arrested on $50 million in bank fraud charges in May 2006.

Both Schwartz and Goldhirsh had previously been charged with conspiracy to commit money-laundering in 2009 indictments.

They were among the 46 people arrested in 2009 as part of a massive political corruption and money-laundering sting in which Dwek served as the linchpin. More than half of those arrested have pleaded guilty or been convicted at trial.

Two have been acquitted and charges were dropped against a third man.

According to the indictment and other court documents:

The money-laundering conspiracy count and each of the attempted money-laundering counts carry a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, Fishman said.

The charge of operating an illegal money-transmitting business carries a maximum prison term of five years and a fine of $250,000, or twice the gross gain or loss from the offense.