In some cases, the contributions were returned as cash payments through what the government called “an underground money transfer network” involving businesses in and around Los Angeles’s jewelry district, the government said.
Three men in California were charged with taking part in the money transfer network: Yaacov Zeivald, 43, a professional scribe from Valley Village, Calif.; Yosef N. Naiman, 55, a tour company owner from Los Angeles; and Alan Friedman, 43, a businessman, also from Los Angeles. A fourth man, Moshe A. Lazar, 60, a diamond dealer, was charged in the scheme as well and was believed to be in Israel, the government said.
The contributions were repaid by a sophisticated series of wire transfers from businesses controlled by the Spinka sect to secret accounts in Israel, the government said. The accounts were established with the help of an official at the Israeli bank, Joseph Roth, 66, of Tel Aviv, who was arrested in Los Angeles, and a Tel Aviv lawyer, Jacob Kantor, 71, who remained at large in Israel, the government said.
According to the indictment, Mr. Roth helped the contributors get loans from a Los Angeles branch of the bank so their money would be available to them in the United States. The contributors could also hire officials of the Spinka sect to repatriate their money for them, albeit for a fee, the government said.
For about a decade, Yossi Ross aka Joseph Roth, 66, of Tel Aviv, was Mizrachi Bank’s L.A. rep. Traditional Jews had the attitude, "Let’s bank with Mizrachi Bank and make Israel some money."
Orthodox Jews knew Yossi. He lived in the Valley. He lived an Orthodox life. At Shaarey Zedek, he’d daven from the bima (pulpit). He had a nice voice. He was a nice guy.
"You can’t tell me more people weren’t involved," says a source. "Yossi Roth knew every frum Jew in Los Angeles."
"I’m sure there’s going to be another indictment."
