Mendel Goldstein, Sentenced For Tax Fraud Scheme

SAN DIEGO – Mendel Goldstein, brother of former Chabad of Poway Rabbi Yisroel Goldstein, was sentenced in federal court today to 8 months custody and a $5,500 fine for his participation in a years-long scheme with his brother to evade taxes.  He was also ordered to pay restitution totaling $164,475.82. While imposing the sentence, District Court Judge Cynthia Bashant stated, “It’s important to send a message . . . people need to know, this is what happens when you commit tax fraud.”

According to his plea agreement, Mendel Goldstein concealed the entirety of his income for at least six years by funneling the income from his successful videography business through Chabad of Poway bank accounts that were controlled by his brother, Rabbi Goldstein.  In return, Rabbi Goldstein took a ten percent cut of Mendel Goldstein’s income.

Mendel Goldstein was able to access his funds by writing checks to himself from the Chabad of Poway bank account that concealed the true recipient of the money, instead addressing checks to fictitious people including “Mr. Green,” “Mr. Gold,” or “Mr. Fish,” or simply making the checks out to “CASH.”  Between April 2012 and August 2018, Mendel Goldstein concealed over $700,000 in income from the IRS, evading over $150,000 in taxes.

Rabbi Goldstein alerted Mendel Goldstein to the investigation around December 2018 and encouraged Mendel Goldstein to conceal his tax evasion by filing delinquent tax returns.  

In July 2020, Rabbi Goldstein pleaded guilty to fraud charges, admitting that he participated in a complex, years-long, multi-million-dollar tax-evasion scheme and other financial deceptions involving theft of public money.  Rabbi Goldstein’s plea agreement outlined the fraud scheme with Mendel Goldstein.

“Our community should not tolerate tax fraud, and offenders will continue to be prosecuted,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team and FBI and IRS agents for their excellent work on this case.

“For years, Mendel Goldstein worked with his brother, Yisroel - then the director of the Chabad of Poway - to orchestrate a financial scheme to hide more than $700,000 of his own income from being taxed,” said FBI Special Agent in Charge Suzanne Turner. “The FBI has no tolerance for those who abuse the tax-exempt status of religious organizations for their own financial gain. We are proud to work alongside our federal partners at IRS - Criminal Investigation to uncover various forms of financial fraud and I would like to thank them for their ongoing partnership in this case.”

“Instead of paying his fair share, Mr. Mendel Goldstein used his relationship and the exploitation of a religious organization’s special non-profit status to divert his income, conceal his earnings and evade paying his taxes,” said Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation. “Today’s sentencing and this investigation demonstrate our commitment to hold accountable those who shirk their tax obligations by corrupting our nation’s tax laws for their own  personal gain.”

SUMMARY OF CHARGES                        Case Number 20CR-2772-BAS

 

Mendel Goldstein                                                      Age:64             Brooklyn NY

 

Conspiracy to Defraud the United States, in violation of Title 18, USC 371

 

Maximum Penalty: Five years in prison

 

PREVIOUSLY CHARGED DEFENDANTS AND SUMMARY OF CHARGES                    

 

Yisroel Goldstein, Case Number 20CR1916-BAS             Age: 58            Poway

 

Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371

 

Maximum Penalty: Five years in prison

 

Alexander Avergoon, Case Number 19CR2955-BAS       Age: 44            San Diego                 

 

Wire Fraud, in violation of Title 18, USC 1343

 

Maximum Penalty: Twenty years in prison

 

Aggravated Identity Theft, in violation of Title 18, USC 1028A

 

Maximum Penalty: Two years minimum consecutive term in prison

 

Money Laundering, in violation of Title 18, USC 1956(a)(1)(B)(i)

 

Maximum Penalty: Twenty years in prison

 

Bruce Baker, Case Number 20CR1912-BAS                     Age: 74            La Jolla

 

Conspiracy to Defraud the United States and file false tax returns, in violation of Title 18, USC 371

 

Maximum Penalty: Five years in prison

 

Bijan Moossazadeh, Case Number 20CR1893-BAS          Age: 63            San Diego

 

Filing a False Tax Return, in violation of Title 26, USC 7206(1)

 

Maximum Penalty: Three years in prison

 

Yousef Shemirani, Case Number 20CR1895-BAS            Age: 74            Poway

 

Filing a False Tax Return, in violation of Title 26, USC 7206(1)

 

Maximum Penalty: Three years in prison

 

Boris Shkoller, Case Number 20CR1913-BAS                  Age: 83            Del Mar

 

Filing a False Tax Return, in violation of Title 26, USC 7206(1)

 

Maximum Penalty: Three years in prison

 

Stuart Weinstock, Case Number 21CR0042-BAS             Age:    64            Escondido, CA

 

Filing False Tax Return, in violation of Title 26, U.S.C. §7206(1)

 

Maximum Penalty: Three years in prison

 

Jason Ellis, Case Number 21CR2200-BAS             Age: 42            Poway, CA

 

Filing False Tax Return, in violation of Title 26, U.S.C. §7206(1)

 

Maximum Penalty: Three years in prison

 

Yehuda Hadjadj, Case Number 22CR148-BAS    Age: 47           La Jolla, CA

 

Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371

 

Maximum Penalty: Five years in prison

 

Rotem Cooper, Case Number 20CR3968-BAS                  Age:    54            San Diego     

 

Deferred Prosecution Agreement

 

Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371

 

Igor Shtilkind, Case Number 20CR3955-BAS                   Age:    55            San Diego

 

Deferred Prosecution Agreement

 

Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371