Israeli Chabad leaders arrested

Israeli police arrested the leader of the Young Chabad movement.

Yosef Aharonov and three others are accused of embezzlement, tax evasion and money laundering. The arrests and a Nov. 13 raid on the community of Kfar Chabad follow an eight-month investigation by the Israel Tax Authority and the Central District Fraud Squad.

Arkady Gaydamak, an Israeli-Russian billionaire and a potential Jerusalem mayoral candidate, is accused of donating $256,000 to the money-laundering facilities allegedly run out of Kfar Chabad, according to Israel’s Channel 10. He and other prominent businessmen are currently under investigation.

Young Chabad, also known as Lubavitch Youth, is a nonprofit organization and one of the more prominent Chabad institutions in Israel. It has a budget of about $7.7 million a year, including allocations from the Israeli government.

Yosef George Segal, a Chabad employee who was accused more than a year ago by Young Chabad officials of embezzling $4.5 million from the organization, also was arrested.

” Like Chabad-Lubavitch offices everywhere, the Chabad Youth Organization in Israel is fiscally independent. However, its noble social service programs and educational outreach are legendary and a source of pride to the Jewish people everywhere,” read a statement from the umbrella organization of the worldwide Chabad Lubavitch movement.

“Clearly, every individual is instructed by the Torah to uphold the laws of his/her land, and this is, of course, a basic principle of Chabad Lubavitch operations.We are confident, therefore, that the authorities will receive full cooperation in their efforts and that, ultimately, the results will be satisfactory. “

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