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| Bernie Madoff (The Guardian) |
This is an Orthodox rabbi who seemed to exemplify the
highest of Jewish ethics. A brilliant man who was a role model of behavior in
Torah and its ethics. He began a successful business. But unlike some successful
business professionals he did not seem to cut any corners. He appeared to be
loyal to highest of standards of Torah ethics. And remained Jewishly active
in the city in which he lived - in the most obviously Orthodox way one could
ever imagine. For which he was recognized by virtually all segments of
Orthodoxy that knew him.
In that role he had even been asked to speak about Jewish ethics
in business by people involved with Jewish outreach. Which he had graciously accepted
and am told he spoke quite eloquently on.
Yesterday my heart was broken when I found out through a mutual
acquaintance that this fellow was just another amoral crook. This is not just
a rumor. I was directed to evidence of his wrongdoing.
This rabbi had borrowed massive amounts of money from wealthy
religious investors and from people involved in Chinuch who thought they were investing
money with the most honorable fellow their city. In short, he traded on his good
name to get money from people that might otherwise never take that kind of risk.
Now much like Bernie Madoff, I’m sure that his original intent was never to cheat his investors. He probably believed that his acquisitions would turn a handsome
profit. And that he would be able to pay off his loans and payout the promised monthly
distributions to his smaller investors. But his investments turned south rather
quickly. And his investors were left with nothing.
Ordinarily one might say that this was simply an
investment gone bad through no fault of his own and that the people investing
with him knew the risk. But there is unfortunately more to the story which
showed a complete disregard for his investors. He cared only about enriching himself even while experiencing those losses - while
stiffing everyone else.
Property he put up for collateral to his biggest investor
(which was in the form of a loan that eventually came due) turned out to be
under lien to investors from a previous deal.
In another loan with the same investor properties put up for
collateral were sold before the loan came due. He pocketed the money.
In yet another project, he began distributing money to
investors immediately and then suddenly stopped. He then sold the business without telling his investors and pocketed the proceeds. When it
was discovered, he lied about his reasons for selling it - blaming others for what
was clearly his own doing. And even before that business venture closed, he ‘borrowed’
money from it and never paid it back.
This was a sobering lessen for me. While I do realize that
people are not always what they seem to be, I never thought I would be so
easily fooled by someone that I knew relatively well.
True - he had lived a lifestyle that was consistent with his
wealth, but he never seemed to flaunt it or go overboard. There is absolutely
nothing wrong with enjoying one’s wealth. And his public persona was exemplary.
Truly a role model for us all on how a religious Jew should behave if they are wealthy.
Or so I thought. But when faced with ethical
challenges he failed miserably. And kept
it hidden.
I don’t know how many people know about this aside from his
investors. Which is why I am not revealing any names. I was not going to
comment on it at all for fear of somehow revealing his identity to people that
might know him. I think (or at least hope) I have succeeded in not providing
enough detail to accomplish that. The story has not hit the mainstream media. At
least not yet. But people will eventually find out. Besides - the man
deserves his day in court. A real court, not the court of public opinion.
Once again, what happened here is a major Chilul HaShem and
it needs to be recognized as such - even though it is so hard to believe about this
man. And there is a lesson to be learned here as well. An old one: ‘Al Tistakel B’Kankan’ our sages
tell us. Never Judge a book by its cover. No matter how glossy it is.
