A check clearing company relied upon by many in Bnei Brak has announced bankruptcy resulting in tens of millions of shekels in checks being returned. The business is run by a well-known chareidi family. The company cashes checks, gives loans and collects debts.
The owner over the years developed a relationship with numerous city money changes, with the latter depositing their money with him for periods of time. The rumors began last week as checks that were not for particularly large sums were returned. The person in question is high up on the money changing chain and many private money changes rely upon him, hence his collapse may have a devastating impact on the city.
Attorney Ra’anan Gal, who is representing those who lost their money, calls this a ‘major sting operation”, and is quoted telling Kikar Shabbos news the loss is in the tens of millions of shekels. He explains many people gave the man money to use in return for a modest gain and their funds are gone.
According to Gal and others, many families have lost everything they have as they invested in the hope of making a handsome profit. Many were receiving a monthly income in return for leaving their money deposited with the company, providing capital to keep the operation going.
(YWN – Israel Desk, Jerusalem)
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13 Responses
Rachmana litzlan !!
Another ganav amongst us !!
R”L
Sad!
The article is not clear!
What happened to the money? Where is it?
A “sting” is when someone sets up a crook – so if this was a “sting” that implies that the frum business was corrupt and was “stung” by the good guys (who are? ). What sort of improper activities were they caught doing?
If people invested money with them in return for a handsome prophet but without serious risk, that suggests ribis. Risk-free investments by definition involve low returns. High returns come from high risk.
My heart goes out to the people that lost their money, why in the world do people never learn
I do not understand. Why is this called a Sting Operation? Are you saying that the operators of this service stole all the money?
so what do you mean by “Sting Operation”?
i think you meant “Stink Operation”.
Sting operation?
Did your an a ponzu scheme?
“sting operation”??
does he mean scam? or Ponzi scheme?
What the investing public needs to understand is that there are huge banks that spend tens of millions to get an Investments that can increase their profit by 25 basis points (a quarter of a percent) with limited risk, so if there is an “investment” someone offers that promises a guaranteed significant profit you can rest assured that the only thing guaranteed is that it’s a huge risk.
The story is familiar;
These money-change places act like banks, taking in large sums of money and promising an unrealistic return. Somewhere on the chain of interested parties, the Israeli mafia/underworld is involved, with various money laundering schemes.
The unfortunate kollelnik with some money isn’t savvy enough to see the dangers, and thinks he can make a parnassah without working. Until the system collapses,and then the chief honcho, fearing for his life, runs away and everyone cries “Gevald! But he was such an ehrlicher yid and a big ba’al tzedakah!”
The blame is on the rabbonim who have created a generation of talmudic scholars who know nothing else. Sometimes it’s good to know something else.You don’t want to? Then remember the chazal “sam kaspo al keren hatzvi” and suffer the consequences. I won’t bail you out.
If it looks too good is probably is. Only those who were greedy will have lost money here.
I’m surprised that you didn’t write that the perpetrator has vanished. According to Kikar Shabbos he sent a message that he was leaving the country and gone into hiding “as he couldn’t live with himself”.
old man
Stop blaming the rabbanan!
It’s all YOUR fault!
Don’t believe me? Listen to what Rav Kessin says happens when someone like you speaks lashon hara!