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San Diego attorney sentenced for role in ex-rabbi tax fraud scheme

Prison bars
Posted at 6:19 PM, Aug 19, 2022
and last updated 2022-08-19 21:19:37-04

SAN DIEGO (CNS) - A San Diego attorney who pleaded guilty to federal charges stemming from a tax fraud scheme orchestrated by former Chabad of Poway Rabbi Yisroel Goldstein was sentenced Friday to just over a year in prison.

Elliot Adler, 45, admitted to taking part in what prosecutors have termed the "90/10" scheme, in which Goldstein accepted charitable donations, then would send about 90% of the funds back to the donors, while pocketing the remainder for himself.

Donors would then falsely claim on tax forms that 100% of their donations went to the Chabad, with Goldstein providing the false donors with fake receipts.

The U.S. Attorney's Office said Adler was a purported donor from at least 2010 until 2018, allowing him to reduce his personal income tax liability by about $500,000.

Prosecutors allege the men conducted their transactions over text messages in code in order to conceal the nature of their communications.

In addition to custody, Adler was ordered to pay a $20,000 fine. He was also ordered to forfeit gold coins Goldstein gave him as part of the scheme.

In 2020, Goldstein pleaded guilty to fraud charges and was sentenced earlier this year to 14 months in prison.

Adler is the 11th person to plead guilty and be sentenced in the case, while two others agreed to deferred prosecution agreements, according to the U.S. Attorney's Office.