Related Federal Cases
- Yoga Boss Gumucio Gets 4 Years for $1M Tax Dodge · Washington
- Geneseo Students Triumph in FDIC’s Banking Challenge · North Carolina
- Google Cornered: AG James Nails Tech Giant in Ad Monopoly Case · New Hampshire
- Live Nation Faces Lone Fight: NY AG Rejects DOJ Deal · Washington
- Live Nation & Ticketmaster Face Antitrust Fight in NY · Washington
Goldstein Brothers Guilty of Tax Evasion
Two brothers from Los Angeles, Alan Goldstein, 78, and David Goldstein, 74, have pleaded guilty to tax fraud charges. The Goldsteins made tens of thousands of dollars in contributions to charitable organizations operating under the umbrella of the Spinka group, an Orthodox Jewish organization based in New York.
As part of their scheme, the Goldsteins would make contributions to Spinka’s charitable organizations, including Yeshiva Imrei Yosef, Mosdos Hachesded, Central Rabbinical Seminary, and Kollel Ner A’Avrohom. In return, agents of Spinka would secretly refund 90 percent of the contributions through various third parties, while mailing charitable contribution receipts for the full amounts.
According to court documents, in 2005 and 2006, Alan Goldstein made $135,000 in contributions to Spinka-related entities, and received kickbacks equaling 90 percent of his contributions. David Goldstein made $145,000 in contributions during the same years, and received $356,400 in kickbacks on behalf of himself and his brothers.
Both defendants filed their respective 2005 and 2006 tax returns claiming the inflated contribution amount for the purpose of tax fraud. The tax loss to the government was $45,961 with respect to Alan Goldstein, and $46,531 with respect to David Goldstein.
Spinka is a religious group within Orthodox Judaism that operated a variety of charitable organizations, contributions to which could be tax deductible under the Internal Revenue Code. Prior to the Goldsteins, 16 other defendants pleaded guilty to charges arising from an investigation of kickbacks provided by Spinka charitable organizations to wealthy contributors.
The Goldsteins are scheduled to be sentenced by Judge John F. Walter on August 19, 2013. At sentencing, Alan Goldstein faces a statutory maximum sentence of eight years in federal prison and a fine of $500,000. David Goldstein faces a statutory maximum sentence of 10 years in prison and a fine of $500,000. In addition, each defendant may be ordered to pay full restitution for the tax loss, which is estimated to be $55,145 for Alan Goldstein and $70,039 for David Goldstein.
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime