Union City Man Admits Operating Supposed Charity as Illegal Bank, Falsifying Taxes
Federal Information & News Dispatch, Inc. |
District of
According to the information and statements made in court:
Schwartz operated Gemach Shefa Chaim (GSC), purportedly to provide interest-free loans to needy members of the Sanz community in
To operate a bank in
Schwartz admitted that, in operating GSC as a bank, he accepted deposits and credited clients' accounts, wrote checks from GSC as directed by clients, made transfers between accounts, disbursed client funds upon request, negotiated GSC checks presented by persons other than the named payees, conducted wire transfers, provided clients with receipts of transactions, charged clients a fee for bounced checks, and provided overdraft notices to clients. Schwartz also admitted that he opened and maintained various bank accounts at financial institutions in or around
Schwartz also admitted that he provided false and fraudulent information to his tax preparer in
The banking offense to which Schwartz pleaded guilty carries a maximum potential penalty of five years in prison and a
GSC bank accounts were seized in
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today's guilty plea; as well as the
The government is represented by Assistant U.S. Attorneys
Copyright: | (c) 2011 Federal Information & News Dispatch, Inc. |
Wordcount: | 751 |
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News