Twelve members belonging to the Hasidic community of Brooklyn have been charged with lying about being wealthy to obtain mortgages while simultaneously lying about being poor to get food stamps and other benefits, according to the New York Daily News
The indictment said some of those arrested lied about many things and that they belong to Hasidic communities in Brooklyn and Kiryas Joel, an ultra-Orthodox Jewish village in upstate Monroe in Orange County, the Daily News reported.
Eleven of the 15 defendants live in Brooklyn and 13 were arrested Thursday and the other two were expected to surrender, according to the Daily News.
Family members lied to lenders about their assets, income, employment and primary residence to obtain mortgages on at least 18 properties they claimed to own, the Daily News reported.
Most of the twelve were arrested on Thursday morning, according to Brooklyn News 12. The fraudulently obtained mortgages totaled more than $20 million and the welfare fraud realized about $700,000 in benefits, the indictment said.
According to one of the indictments, one couple claimed monthly income of $25,000 when taking out a mortgage and $180 when applying for food stamps and Medicaid, Reuters reported.
Yehuda Rubin, 29, of Monroe, was described in the indictment as "an organizer" of the scheme and Rubin's father, Irving Rubin, 58, of Brooklyn, is the lead defendant, according to Reuters.
"The individuals involved alternately played the parts of prince or pauper, depending on which scam was being perpetrated," United States Attorney Preet Bharara said at White Plains Federal Court, the Daily News reported.
Both men pleaded not guilty on charges of bank fraud and making false statements Thursday, Reuters reported. The charges hold a maximum penalty of 30 years in prison.
Other defendants include Irving Rubin's wife, another son, three brothers and five in-laws, according to Reuters. Three unrelated men also were charged, including a real estate lawyer and an appraiser.
