Vishnitz Zaidy Headed to Otisville

Vishnitz Zaidy Headed to Otisville

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Chaim Stern, of Kew Gardens Hills, was just sentenced to 30 months in Federal prison. Chaim will be heading to Otisville very soon. Chaim ran a number of nursing homes in the State of Connecticut. Chaim used his nursing homes as his own personal piggy bank. Chaim was spared a much longer 70 month jail sentence requested by the Federal Government. Chaim submitted doctor letters that say he has a number of diseases in which he must take various medication to treat. Doctor letters also indicate that Chaim recently recovered from COVID19 and it was recommended that he not take the vaccine.

Chaim transferred $4 million of employee Pension Plan assets into a charity that he controlled, known as Em Kol Chai (“EKC”). Chaim lied to investigators at the Department of Labor about his relationship with EKC. Chaim initially said he had nothing to do with EKC. In reality Chaim was the President of EKC. The Feds never charged Chaim with obstruction of justice because Chaim never obstructed an investigation, nobody believed his ridiculous lies. Some of the $4 million he stole was donated to charities controlled by Stern such as American Friends of Viznitz in Israel. Other money went to friends and relatives of Stern. Some money was used to pay life insurance policies on the lives of Stern and his family members. When the government started to investigate, Stern’s son prepared and back dated a promissory note in the amount of $4 million to EKC, in order to falsely show that Stern lent the money to EKC. Stern’s accountant told Stern that he needed to show security for the bogus loan from the assets of EKC. Stern’s response to his accountant was the following: “What assets? I don’t think it has any meaningful assets in their name.” Stern was trying to pull a fast one on the almighty Department of Justice. Did Stern think he was dealing with Keystone cops from Queens?

Stern pleaded guilty to stealing $4 million from the employee pension plan. Stern also pleaded guilty to stealing from the employee’s health insurance plan by deducting insurance from employee paychecks and not paying the health insurance company the premiums, over a period of eight year. There are $9.4 million in employee medical bills that remain unpaid. The health plan administrator is currently attempting to negotiate bills and pay claims. Stern’s health plan paid for the health insurance and medical bills of 50 individuals, mostly Stern’s family members, who were not even employed by Stern’s nursing homes. The employees subsidized the health care costs of Stern’s friends and relatives. Stern also pleaded guilty to failing to pay over $4 million in employment taxes to the IRS. Stern deducted the money from employee paychecks but forgot to mail the money to the Federal government.

Numerous employees submitted statements excoriating Stern: “I’m one of the lucky ones – [Stern] only stole my pension. So many of my friends have 4, 5, and 6 figure medical bills through no fault of their own. Sleepless nights, bill collectors, loss of self esteem – truly terrible.” “Life become so much worse when [my husband] passed away April 10, 2015 from his illness. What a horror it was to discover that none of our insurance bills were being paid and I was harassed daily by bill collector’s phone calls and past-due notices in my mail.” “The loss of my pension has caused much stress in my life. I worked at Bridgeport Manor for 17 years, and contributed as needed. I am retired now and living on my social security. The lack of my pension has caused me to not accomplish the goals for myself and my family upon retirement. This has saddened me and caused me stress.” “I came to this country to give my children a better life and put them through school. I have sacrificed a lot and when I learned that Mr. Stern stole money from the pension fund I was in tears. I have worked so hard my whole life to have enough money to retire. I had over $50,000 in my pension fund and was counting on that money to help me in my retirement. I am now retired, but I have to clean houses to make ends meet. I had a plan to use the money in my pension to help me live. My plan was to completely retire and spend some time [overseas] with my sick mother, but because I do not have that pension money that I worked so hard to put into, I cannot even do that.”

Stern’s sentencing hearing dragged on for 5 hours. Stern’s attorney projected videotapes of Stern’s many fans attesting to the charitable and selfless nature of Mr. Stern. Stern submitted 60 pages of character letters from friends, neighbors and family members. Stern’s daughter in law, Gitty Stern, wrote in her letter the following: “if all the waters would be ink and all the tress would be quills it would still not be enough to describe the true goodness of Mr. Chaim Stern. Hi! My name is Gitty Stern. I am the one and only daughter in law of Mr. Chaim Stern. If there would be some more Chaim Sterns on this Earth, this world would be a better place! Please extend him the mercy and compassion he has shown others in his entire life, everyone can benefit from his goodness!”

Rabbi Isaac Oelbaum of the K’Hal Nachlas Yitzchok shlu of Kew Gardens Hills wrote a letter attesting to Stern’s good deeds. Stern “used to be a member” of Oelbaum’s shul. Rabbi Keeva Grunblatt, the Dean of the Rabbinical Seminary of America submitted a letter of support. Attorney Moshe Schwerd, who identifies himself as a “senior tax counsel at Simpson Thacher and Bartlett,” wrote the following: “In over 30 years of practice, I have never been moved to pen a letter such as this… though I would not characterize Mr. Stern as a friend, I know him and, more importantly, I know of his vast and selfless contributions to a myriad of philanthropic causes.” Is it a sin to give stolen money to charity? Danny Schilo wrote: “As a professional in Deloitte’s Digital Forensic group for over a decade, I’ve always done my best to be respectful of the Court’s time, so writing this letter is not something I take lightly.” Attorney Avery S. Mehlman wrote: “Although I am an attorney, and a former prosecutor, I was not involved in representing Chaim Stern nor am I familiar with the charges. I have seen Mr. Stern, on a Friday night, invite people to his Sabbath meal. These individuals are strangers and Mr. Stern recognizes the importance of welcoming guests into his home. Mr. Stern will always ask the individual if he needs a place to eat or even sleep.” Esty Perlstein AKA Sasczer wrote: “It is a great honor and privilege to be Mr. Chaim and Miriam Stern’s oldest granddaughter. My grandfather always brings leftover food from Shabbos to the local synagogue so that others who are not as privileged and can’t afford a hot meal have what to eat.” Attorney Jacob Borenstein wrote: “One of Chaim’s life missions is treating all guests as though they are royalty.”

Stern fan David Simkowitz wrote: “I am humble and proud to share that I have built a very successful boutique financial services firm with a large life insurance practice that serves high net worth individuals. I am been blessed with tremendous success and am forever grateful to Chaim who served as a mentor.” Speaking of life insurance policies, Stern was able to pay back a considerable amount of his restitution because he invested his stolen money in life insurance settlement policies, which Stern described as a form of high risk “gambling” where investors purchased life insurance policies from an insured person who no longer wished to pay the premiums on their policy. Rather than allowing the policy to lapse, the insured sold the policy to a third party and that third party continued to pay the policy premiums until the insured died, hopefully sooner than later. The third party then collected on the life insurance money when the insured died. Stern’s lawyer boasted: “On August 27, 2018, Mr. Stern paid back approximately $4,141,950 to the Pension Plan. These funds came from an investment Mr. Stern made in a life settlement policy.” Stern made over $4 million bucks on one life insurance policy? Who was this $4 million dollar man who sacrificed his life in order to spare Mr. Stern 7 years in Otisville? Should Stern be investigated for murder? The Government was not impressed with Stern’s life insurance gambling habit, and stated that Stern did not purchase these policies from someone who could no longer afford to pay the premiums, but rather Stern took out new life insurance policies on “unrelated third parties, a fraudulent practice generally prohibited by insurance companies (if they are aware of at the time of inception) that can result in criminal penalties.” Stern was never charged with life insurance fraud. I was locked up in Otisville with a few Hasidim who were doing time for the lucrative life insurance scam, which involves submitting doctored medical records, and working with shady life insurance agents. $4 million bucks on one Stern policy! I am in the wrong business.

Stern submitted a forensic psychiatric evaluation conducted by Dr. Howard Zonana, Director of Law and Psychiatry Division, Yale New Haven Hospital. Stern grew up in Israel. Stern blamed his anti social behavior on his father: “As a result of the horrors that Mr. Stern’s father suffered during the Holocaust, as well as his feelings of survivor’s guilt, Mr. Stern’s father was an abusive, rage-filled man. Mr. Stern suffered at the hands of his father, for example being beaten with a stick. When Mr. Stern was nine years old, his mother, who was pregnant at the time, left home, taking with her only the youngest child. Mr. Stern returned from school and asked where his mother was. His father responded, Mommy went away; she’s not coming back. When Mr. Stern was twelve years old, Mr. Stern’s father became ill. His father had untreated diabetes and had both of his legs amputated. As Mr. Stern grew older, his father’s rage and abusive behavior intensified. His father would often curse him or hit him with a stick all over. Mr. Stern found comfort in the community led by the Vizhnitz Rebbe who gave him strength to survive. As Mr. Stern’s relationship with his father deteriorated as he grew older, Mr. Stern confided in his Rebbe and sought advice about what he should do with his life. His Rebbe guided him to go to America. Mr. Stern immigrated to America in 1969 with only $50. He was 20 years old, had an elementary school education, and did not speak English. He had the name of cousins in Brooklyn, who helped him to settle into the Vizhnitz Orthodox Jewish community.” The rest is history.

Is Stern a sinner or a saint? Stern can’t be both. Stern will have plenty of time to repent for his sins in Otisville. Otisville is down to 55 inmates. Guys have their own private cubicles, just like it was back in the 1980s when locked up mobsters had RVs drive into the Otisville parking lot at night for drinking and entertainment purposes. The good old days.

RIP OLE ANTHONY: 82 year old skid row Dallas resident Ole Anthony passed away this month. Ole (O-lee) took out hundreds of televangelists fraudsters, including $80 million Rev. Tilton. Ole had a large following in Dallas that investigated Christian religious fanatical fraudsters. Ole took a vow of poverty and lived in the slums of Dallas. Ole had a daily Christian prayer group which he didn’t start until he had a minyan of ten humans. Ole also held Passover services. Ole’s early life was one of crime, but he eventually found God after he was given a choice between going to jail or the military. Ole went into the Air Force and turned his life around. Ole’s famous quote is the following: “There’s more fraud in the name of God than any other kind of fraud in the world.” Its too bad Ole didn’t get a chance to visit Otisville before he died.

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