manchesthairy

manchesthairy t1_itnuv0b wrote

The yeshiva also benefited from its fraudulent payment practices because many employees and other community members used their welfare status to receive New York City vouchers for child care — and then used them to pay the school, according to the documents. The Times reported last month that a city voucher program sent nearly a third of its total funding to Hasidic neighborhoods last year.

The federal investigation found that the school defrauded government programs meant to provide meals to low-income children, receiving more than $3.2 million from 2014 to 2016 in reimbursement for what the authorities said was an “almost entirely fictitious” meal program.

The fraud included the fabrication of records and dozens of sworn misrepresentations to government agencies, the authorities noted.

In some cases, the court documents said, yeshiva officials claimed that they provided meals to children on days when the school was not in session

35

manchesthairy t1_itnuqhi wrote

The documents filed on Monday revealed that the school was at the center of a varied and wide-ranging fraud scheme.

For years, the documents showed, the school paid many of its teachers and other employees in part with cash, coupons and life insurance policies, making it seem as if the employees were earning less than they really were and allowing them to pay lower taxes and qualify for welfare.

From 2010 to 2015, the school paid employees with at least $12 million in coupons — 17 percent of its total employee compensation — which the workers could use as cash in Hasidic grocery stores and other shops, the investigators found.

The school also set up no-show jobs for friends of employees and other community members, the documents said.

Yikes

9