Son of Mossad Agent Pleads Guilty to $90M Mortgage Fraud Scheme

Son of Mossad Agent Pleads Guilty to $90M Mortgage Fraud Scheme

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Harvey H. Schack, of Spring Valley NY, passed away in 2017. Harvey was an accomplished sculptor, artist, cartoonist, author of seven books, lecturer, gardener, and craftsman. He was president of Joseph Schack Glass Company and Schack Industries. Harvey was a special officer of the Mossad, a member of the Rockland County Anti-Terrorism Analytical Group, a Mason, and a founding member of Temple Beth El. In 2016 Harvey’s son Barton Schack, of Ringwood, NJ, orchestrated a $90 million mortgage fraud scheme. Barton was the CEO of Regent Medical Properties, that he operated out of New Jersey. Barton just pleaded guilty in the Federal District Court of New Jersey to conspiracy to commit bank fraud. Barton is scheduled to be sentenced on June 21, 2021.

The Justice Department alleged that Schack and his co-conspirator, ie., Co-Conspirator 1, operated Sovereign Medical Services, conspired to defraud a number of banks out of $91 million. Co-conspirator 1 operated a network of medical practices through Sovereign Medical Services. Co-conspirator 1 also was an executive of Regent Medical Properties. Schack and Co-conspirator 1 submitted fraudulent leasing information and inflated rent collection information to the banks that lent them $91 million. They made mortgage payments for 3 years on the $91 million loan. After 3 years they stopped paying the mortgage and filed for bankruptcy. According to the Justice Department Schack and Co-conspirator 1 blew the $91 on personal expenses. They ran up $80K a month in credit card charges and frequently traveled by private jet.

The name of Schack’s co-conspirator was not disclosed by the Federal Government, but the indictment states that Co-conspirator 1 was the founder and CEO of both Regent and Sovereign. The Noodles research team did some digging and determined that the founder of Sovereign Medical Services is a Syrian born doctor named John H. Hajjar. Hajjar’s family fled Syria in 1968 and settled in South Patterson, New Jersey, where they enrolled John in a Catholic high School. John went on to receive a BS in biology from St. John’s University and went on to Georgetown University School of Medicine, and completed his surgical and urological training at New York University. Dr. Hajjar ran a urology practice for some years. He eventually founded Sovereign Health System, a fully integrated community healthcare organization providing clinical expertise and state-of-the-art technology for patients throughout the tri-state area. Dr. Hajjar is very wealthy and donates much of his wealth to Catholic hospitals and Catholic schools. Dr. Hajjar donated a million dollars to the St. Peter’s University Hospital. In 2017 Dr. Hajjar was feted to a gala honorary smorgasbord all you can eat dinner at St. John’s University for his philanthropy. I don’t believe that the food was kosher. There is a picture of Barton Schack at the dinner.

The indictment alleges that Schack and Co-conspirator 1 filed bankruptcy in 2020, approximately 3 years after closing on their $91 million loan. The Noodles team conducted some research and determined that a number of companies owned by Dr. Hajjar filed bankruptcy in the New Jersey Bankruptcy Court in 2020. Further research revealed that Wells Fargo Bank sued Dr. Hajjar in 2020 for loans that originated in 2016. The lawsuit alleges that Dr. Hajjar defaulted on $80 million of mortgages and now owes Wells Fargo approximately $94,900,000.00. Is Dr. Hajjar Co-conspirator 1? Is Dr. Hajjar about to be indicted? Why hasn’t Dr. Hajjar been indicted? Is the Justice Department letting Dr. Hajjar walk because Hajjar is cooperating against Schack? Dr. Hajjar:

Dr. Hajjar is married with three kids. Barton Schack is married with three kids. Barton Shack’s children may have to visit their father in Otisville prison very soon after Barton is sentenced to prison. Barton Shack, his wife and children, should not hesitate to call me if they need advice on how to survive Otisville. Michael Cohen may be fully booked.

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