A Los Angeles man agreed to plead guilty to tax evasion charges in connection with his support of the Spinka Chasidic sect.
Federal prosecutors said Tuesday that Uri Mandelbaum would plead guilty to two felony tax charges and pay $1.5 million in back taxes, the Los Angeles Times reported. Mandelbaum’s plea agreement is the first involving a donor to a charity associated with Spinka.
Spinka Grand Rabbi Naftali Tzi Weisz was indicted last year on tax fraud and money laundering charges. He is scheduled to stand trial in September. Two other defendants, an Israeli banker and Weisz’s assistant, have pleaded guilty in the case.
Mandelbaum has admitted that he reported nearly $900,000 in donations to Spinka organizations on his income tax forms, the bulk of which was returned to him.