New Jersey Man Sentenced for Operating Charity as Illegal Bank - NBC New York

New Jersey Man Sentenced for Operating Charity as Illegal Bank

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    New Jersey Man Sentenced for Operating Charity as Illegal Bank
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    A northern New Jersey man who pleaded guilty to operating a bogus charity as an unchartered bank is heading to prison.

    Authorities say 34-year-old Moshe Schwartz was sentenced to more than two years in prison. A federal judge has also ordered him to pay nearly $75,000 in restitution and a $60,000 fine.

    The Union City man pleaded guilty last year to operating an unchartered bank and aiding and assisting in the filing of a false 2007 tax return.

    Federal prosecutors say Schwartz operated Gemach Shefa Chaim, purportedly to provide interest-free loans to needy members of the Sanz community. But Schwartz operated GSC as a bank, with millions in deposits. Prosecutors say he had more than 350 client accounts by July 2009. 

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