New York: Jewish School Will Pay $8 Million To Avoid Being Prosecuted For Fraud

According to court documents released Monday. An Orthodox Jewish school in New York has agreed to pay $8 million in fines. After pleading guilty to financial fraud and theft of government funds.

The Central United Talmudical Academy (CUTA). Which operates the largest Hasidic educational establishment in New York state in the Brooklyn neighborhood of Williamsburg. It is admitted to stealing $3 million from the federal government meant for 2,000 schoolboys’ daily meals.

According to a statement from the New York federal prosecutor’s office. To avoid criminal charges and To end a federal investigation that began in 2018. CUTA agreed to pay a $5 million fine on top of the $3 million already returned.

“The misconduct at CUTA was systemic and widespread, including the theft of over $3 million intended for school children in need of meals.” US Attorney Breon Peace said in a statement.

According to the prosecutor, the agreement with the religious school will allow a way to repay. To repair the community’s damage while also allowing CUTA to continue educating children in the community.”

The FBI, which led the investigation, stated that the school’s “admission demonstrates a pervasive culture of fraud and greed at CUTA.”

“We expect schools to be places where students are taught proper behavior. CUTA’s leaders went out of their way to do the opposite “Michael Driscoll, assistant director of the FBI, stated

In 2018, two former school leaders pleaded guilty to conspiracy in financial fraud. With one receiving a two-year prison sentence. The other received a suspended sentence and a hefty fine.

According to The New York Times, approximately 100 Hasidic religious schools are in Brooklyn. Over the last four years, the lower Hudson Valley has received more than $1 billion in taxpayer funds.

“They focus on religious instruction, with few classes. According to the newspaper, “there are almost no classes in history, science, or civics and almost no classes in English, reading, and math.”

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