http://www.app.com/article/20110408/NJNEWS10/104080346/N-Y-rabbi-connected-to-Solomon-Dwek-admits-laundering-900-000

TRENTON — A Brooklyn rabbi on Friday admitted laundering more than $900,000 for government witness Solomon Dwek.

Mordchai Fish, 58, pleaded guilty to money laundering conspiracy before U.S. District Judge Joel A. Pisano. Fish was the principal rabbi of Congregation Sheves Achim, Brooklyn, at the time of his arrest.

Fish admitted in court to laundering cash that he believed came from the proceeds of criminal activities, U.S. Attorney Paul J. Fishman said.

According to court documents and statements made in federal court:

Fish admitted that beginning in early 2008, he met with former Ocean Township resident Dwek and agreed to launder and conceal Dwek's money by passing it through several purported charities, known as "gemachs," which Fish controlled or to which he had access.

Fish took a fee of approximately 10 percent for these transactions. Fish admitted that before he laundered Dwek's funds, Dwek repeatedly told him the money came from the proceeds of illegal activities, including bank fraud, bankruptcy fraud, and a counterfeit handbag business Dwek claimed to be operating.

In order to hide the source of the money, Fish told Dwek to make the checks payable to several gemachs, including charities.

After Dwek gave him the checks, Fish passed them to a co-conspirator, who deposited them into the charities' bank accounts. Fish would then arrange to make cash available through an underground money transfer network.

Fish admitted that he engaged in about 15 money-laundering transactions with Dwek, helping to convert about $900,000 in checks into more than $800,000 in cash, while keeping a cut.

Dwek began cooperating with the FBI shortly after he was arrested on $50 million in bank fraud charges in 2006. He wore a wire and traveled throughout New Jersey and into New York City, posing as a developer handing out bribes.

Dwek's activities led to the arrests of 46 people in 2009 in a political corruption and money-laundering sting. More than half of those arrested have pleaded guilty.

Fish faces up to 20 years in prison and a $250,000 fine. Fish also agreed to forfeit about $90,000 by July 28, the sentencing date.