FBI Arrests Six Satmar Hasidic From Williamsburg Charged In Large-Scale Government Benefits Fraud

Brooklyn, NY – Preet Bharara, the United States Attorney for the Southern District of New York, and Mark G. Peters, Commissioner of the New York City Department of Investigation (“DOI”), announced today the filing of criminal charges against six defendants for participating in long-running schemes to hide substantial assets and income obtained from significant business and real estate interests in order to attain government benefits designed for low-income individuals.

In total, the defendants allegedly obtained more than $1.3 million of government benefits.

Sholomo Kubitshuk, Rachel Kubitshuk, Naftali Englander, and HINDA Englander were charged in one complaint, and Leib Teitelbaum and Devorah Teitelbaum were charged in a separate complaint.

The defendants were arrested in Brooklyn this morning and are scheduled to appear in Manhattan federal court later today.

U.S. Attorney Preet Bharara said: “For over a decade, this ring of six defendants allegedly lied to city and federal officials about their financial status in order to obtain benefits that were meant for the needy.

The alleged schemes that netted them over a million dollars has been put to an end and the defendants now face federal fraud charges.”

Commissioner Mark G. Peters said: “These defendants were millionaires stealing from the poor, as charged.

The defendants fraudulently concealed their wealth to obtain benefits, including Section 8 vouchers intended to help low income New Yorkers find housing, according to the allegations.

At a time when affordable housing is scarce, and there is a waiting list for Section 8 vouchers, it is reprehensible that some New Yorkers went without so that these defendants could have still more.”

According to the allegations contained in the Complaints[1]:

From 2001 to 2016, SHLOMO KUBITSHUK, RACHEL KUBITSHUK, NAFTALI ENGLANDER, and HINDA ENGLANDER conspired and engaged in a scheme to obtain government benefits designed for low-income residents, including Section 8 housing subsidies, Medicaid health insurance, and Supplemental Nutrition Assistance Program (“SNAP”) food stamps, totaling more than $980,000.

In connection with applications for these benefits, they failed to disclose substantial income and financial assets, including a portfolio of multimillion-dollar residential real estate properties. The defendants also perpetrated the fraud by providing false income affidavits for each other.

From 2007 to 2016, LEIB TEITELBAUM and DEVORAH TEITELBAUM also conspired and engaged in a scheme to obtain government benefits designed for low-income residents, including Section 8 housing subsidies, Medicaid health insurance, and SNAP food stamps, totaling more than $330,000.

In connection with applications for these benefits, they failed to disclose substantial income and financial assets, including a jewelry business and an apartment they owned.

SHLOMO KUBITSHUK, 38, RACHEL KUBITSHUK, 39, both from Brooklyn, New York, are each charged with one count of conspiracy to steal government funds, which carries a maximum sentence of five years in prison, and two counts of theft of government funds, each carrying a maximum sentence of 10 years in prison.

NAFTALI ENGLANDER, 40, HINDA ENGLANDER, 41, LEIB TEITELBAUM, 39, and DEVORAH TEITELBAUM, 36, all from Brooklyn, New York, are each charged with one count of conspiracy to steal government funds, which carries a maximum penalty of five years in prison, and three counts of theft of government funds, each carrying a maximum sentence of 10 years in prison.

The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

1 reply
  1. Joe Levin
    Joe Levin says:

    WILLIAMSBURG — Three Brooklyn couples, including a landlord with properties all over the borough, were arrested Tuesday on charges of defrauding the government of $1.3 million worth of benefits.

    Shlomo Kubitshuk, 38, and his wife Rachel, 39, Naftali, 40, and Hinda Englander, 41, and Leib, 39, and Devorah Teitelbaum, 36, were accused of lying about their income to the federal government as far back as 2001 in order to collect thousands of dollars worth of food stamps, Section 8 housing vouchers and Medicaid.

    “For over a decade, this ring of six defendants allegedly lied to city and federal officials about their financial status in order to obtain benefits that were meant for the needy,” said U.S. Attorney Preet Bharara.

    The six were slapped with a multiple counts of conspiracy to steal government funds and theft of government funds, which carry a five and ten year maximum sentence respectively, court documents show.

    In two separate complaints unsealed Tuesday, prosecutors said the six benefited from $457,000 in Section 8 vouchers to pay for NYCHA apartments, $130,000 in food stamps and $733,000 in Medicaid payouts.

    “At a time when affordable housing is scarce and there is a waiting list for Section 8 vouchers, it is reprehensible that some New Yorkers went without so that these defendants could have still more,” said Department of Investigations Commissioner Mark Peters.

    Shlomo Kubitshuk owns multiple properties across Brooklyn, according to prosecutors, including 56 Grattan, 98 Grattan St. and 177 Montrose in East Williamsburg, 327 Melrose St., 318 Melrose St. and 1436 Greene St. in Bushwick and 1144 Bergen St. in Prospect Heights.

    The state had records of Kubitshuk taking in $560,000 in rental income in 2013, and in multiple applications for mortgages he said his assets were worth more than $2 million, prosecutors said.

    His wife said she took in $300,000 in annual income through another LLC company on a 2013 credit card application, according to the complaint.

    Despite that, the pair claimed only $13,409 a year in combined income for around a decade in order to qualify for federal subsidies, federal prosecutors charge.

    Naftali Eglander, owner of a U.K. real estate company City Gate Estates Limited worth more than £600,000, and his wife Hinda disclosed only $15,858 in combined annual income between 2001 and 2013, prosecutors said.

    Finally Leib Teitlebaum, president of the online jewelry company http://www.glitzs.com, professed to earn about $1.2 million a year in a 2006 credit application, according to the state, yet disclosed far less.

    “These defendants were millionaires stealing from the poor,” said Peters. “The defendants fraudulently concealed their wealth to obtain benefits.”

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply