Assistant U. S. Attorneys Michelle L. Wasserman (619) 546-8431 and Valerie Chu (619) 546-6750
NEWS RELEASE SUMMARY – March 11, 2022
SAN DIEGO – Mendel Goldstein, brother of former Chabad of Poway Rabbi Yisroel Goldstein, was sentenced in federal court today to 8 months custody and a $5,500 fine for his participation in a years-long scheme with his brother to evade taxes. He was also ordered to pay restitution totaling $164,475.82. While imposing the sentence, District Court Judge Cynthia Bashant stated, “It’s important to send a message . . . people need to know, this is what happens when you commit tax fraud.”
According to his plea agreement, Mendel Goldstein concealed the entirety of his income for at least six years by funneling the income from his successful videography business through Chabad of Poway bank accounts that were controlled by his brother, Rabbi Goldstein. In return, Rabbi Goldstein took a ten percent cut of Mendel Goldstein’s income.
Mendel Goldstein was able to access his funds by writing checks to himself from the Chabad of Poway bank account that concealed the true recipient of the money, instead addressing checks to fictitious people including “Mr. Green,” “Mr. Gold,” or “Mr. Fish,” or simply making the checks out to “CASH.” Between April 2012 and August 2018, Mendel Goldstein concealed over $700,000 in income from the IRS, evading over $150,000 in taxes.
Rabbi Goldstein alerted Mendel Goldstein to the…
