Jews for Allah

[Guest]

> Rabbi convicted in tax evasion scheme
> Ron Csillag | Canadian Jewish News | 06-07-01 Edition
>
> TORONTO - A Toronto rabbi has been sentenced to a year of house
> arrest
> and must a pay of fine of $32,229, in a tax evasion scheme that
> issued
> false receipts in the names of three registered charities.
>
> As well, Rabbi Leon Edery, 65, must perform 240 hours of community
> service, and is prohibited from taking part in any charity for a
> year.
>
> Rabbi Edery had been charged with 48 violations of the Income Tax
> Act,
> but convicted on one that encompassed all the major accusations.
>
> Court heard that under the scheme, which ran from 1992 to 1997,
> donors
> to three charities, two of which are synagogues, were issued tax
> receipts by Rabbi Edery. However, the receipts were for much higher
> amounts than the actual donations.
>
> In 1995 alone, for example, the value of receipts issued was almost
> $1
> million, while actual donations totalled $312,000.
> Some receipts were also backdated so they could be submitted for the
> previous tax year.
>
> The donations were paid to the Abarbanel Sephardic Learning Centre,
> Mincha Gedola Synagogue and Or Hamaarav Sephardic Congregation. Rabbi
>
> Edery controlled all three, which were registered charities, from his
>
> North York home.
>
> In 1986, however, Or Hamaarav Congregation, in the Bathurst-Wilson
> area,
> was seized by its mortgage holder, Regional Trust Co. The
> congregation,
> which housed a synagogue and kosher day-care centre, was about
> $450,000
> in debt and several months behind in mortgage payments.
>
> Rabbi Edery and his late brother, Rabbi Abraham Edery, were
> signatories
> to the mortgage. The centre was eventually sold in a power of sale,
> with
> proceeds going to creditors. However, the head of the day care centre
>
> was never paid the $3,000 she was owed.
>
> In the tax evasion scheme, the Crown had sought a six- to 12-month
> jail
> term. Only Rabbi Edery's age and poor health saved him from prison.
> "I
> think the community is better served by you being in it, rather than
> in
> jail," said Madam Justice Rebecca Shamai in passing sentence last
> week.
>
> The rabbi will be allowed to leave his home only for religious
> functions, medical reasons and to perform his community service.
>
> Evidence at his trial last month in the Superior Court of Justice
> showed
> Rabbi Edery attempted to evade paying some $64,000 in personal income
>
> taxes.
>
> Rabbi Edery, who is not a member of either the Orthodox Vaad
> Harabanim
> or the Toronto Board of Rabbis, faces other tax evasion charges, and
> is
> scheduled to be back in court later this month.
>
> Jacob Abecassis, 33, a tax preparer involved in the scheme, pleaded
> guilty to tax evasion last fall. He was fined $128,000 and sentenced
> to
> six months of house arrest.
>