| Zvi
Zigelman Pled Out in PPP Fraud Scheme Got
18 Months so Rosenfeld Wants Year &
Day
By Matthew
Russell Lee, Patreon Maxwell
Book
SDNY MAG COURT
EXCLUSIVE, July 5 - In
the U.S. District Court for
the Southern District of New
York on October 24, 2022 two
bond proceedings were held by
Magistrate Judge Robert W.
Lehrburger. Inner City Press
was there, the only media in
the Mag Court.
The two
defendants, presented
together, were charged with
defrauding banks and the SBA
out of over $2 million in a
Paycheck Protection Act
scheme. They claimed to have
two hundred employees, but had
none.
In fact,
the prosecutor described them
as self-employed, and both
dual citizens of the US and
Israel. Four passports were
turned over.
Moshe Rosenfeld,
treasurer of Sar Shalom
(described in the Complaint as
"purporting to be a
not-for-profit entity
providing financial aid to the
Jewish community," had been
arrested on Sunday, October
23; he got a Criminal Justice
Act lawyer.
Zvi Zigelman was
arrested earlier on October
24, and retained private
counsel just back from a trial
in EDNY that Inner City Press
covered.
Both were
released on $250,000 bond,
with two weeks to come forward
to two financial responsible
persons each to co-sign.
Jump cut to
February 6, 2023 - in an
otherwise empty Magistrates
Court Zigelman with counsel
came to plead guilty.
Magistrate Judge Ona T. Wang
read from the plea agreement -
a stipulated guideline
sentence of 24 to 30 months,
with the case and sentencing
wheeled out to Judge Colleen
McMahon.
When on February
8, 2024 - a full year later -
Zigelman filed his sentencing
memo, it was to ask for a
probationary sentencing,
complete with a video not
visible in the docket,
described in a largely
redacted paragraph.
On February 22,
Zigelman got 18 months, with
Otisville recommended.
"Defendant is sentenced to a
total term of EIGHTEEN (18)
MONTHS imprisonment. It is
hereby ordered that the
defendant having been
sentenced to the custody of
the Attorney General is to
surrender to the Attorney
General by reporting to the to
the facility designated by the
United States Bureau of
Prisons, before 2:00 p.m., on
May 20, 2024. The Court
recommends that Bureau of
Prisons incarcerate defendant
in the prison camp at
Otisville."
Jump
cut to July 3,
2024 when, for
a sentencing
set for July
18, Moshe
Rosenfeld's
lawyer wrote
and asked for
a year and a
day, arguing
that he
"played a
relatively
small role in
the scheme
executed
primarily by
his
co-defendant."
Back on March 28,
2023 Rosenfeld now with a
retained counsel was arraigned
and pled not guilty: "Minute
Entry for proceedings held
before Magistrate Judge Robert
W. Lehrburger: Arraignment as
to Moshe Rosenfeld (2) Count
1,2 held on 3/28/2023.Hebrew
Interpreter needed. Defendant
arraigned; pleads Not Guilty."
It didn't hold
for a year - on February 20,
2024, he pled guilty: "Minute
Entry for proceedings held
before Judge Colleen McMahon:
Change of Plea Hearing as to
Moshe Rosenfeld held on
2/20/2024. Defendant present
with his attorney Sarah
Krisoff; AUSA Jennifer Ong;
Hebrew interpreter; court
reporter Sam Mauro. Duration
of Proceeding: One Hour.
Defendant withdraws his
previously entered plea of not
guilty to Count S1-1 of S1 23
CR 65-02 (CM), and now pleads
guilty to Count S1-1. The
Court accepts defendant's
plea. The matter is adjourned
to May 29, 2024, at 2:00 p.m.,
for sentencing. Bail
continued."
The case now is
US v. Rosenfeld, 23-cr-65
(McMahon)
***
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