Intensive Probe Underway in N.Y. Against Kosher Food Fraud

The most sweeping investigation the history of the New York State law against commercial enterprises which represent non-kosher products as kosher, resulting in a planned levy of “unprecedented” fines totaling $150,000 in four current cases, in addition to criminal charges, is only the start of such intensive probes, the Jewish Telegraphic Agency learned today.

The current ongoing investigation under the state’s law, labeling such misrepresentation as fraud, involves a joint task force of the state Attorney General’s bureau of criminal prosecution and the United States Department of Agriculture (USDA), initiated by the Kosher Law Enforcement Division of the New York State Department of Agriculture and Markets. Rabbi Schulem Rubin is the director of the enforcement division.

Owners of two of the four firms face criminal prosecution charges brought by Attorney General Robert Abrams’ office. The other two face “huge” fines in civil penalties, Rubin said in response to JTA inquiries. The two firms facing criminal charges are Rachleff Kosher Provisions, Inc. which does business as Royal Crown Kosher Provisions; and Georgetown Kosher Meats, Inc. Both are located in Brooklyn.

Chaim Berger, president of the Georgetown meat firm, described by Rubin as a retailer with a very large trade, and Albert Abravnel, president of Royal Crown, were booked last Thursday by Abrams’ office and the Kosher law Enforcement Division. Abravnel and Berger were each charged with a Class A misdemeanor, carrying penalties of up to a year’s imprisonment and a $500 fine.

VIOLATIONS AND PENALTIES

After surrendering, by prior agreement, to the Attorney General’s office in Manhattan’s World Trade Center, they were taken to local police precincts where they were issued appearance tickets ordering them to be present in Brooklyn Supreme Court on January 24. Under such arrangements, accused individuals need not post bail and the two were released to return to their regular activities.

The other two are Nat Kagan, owner of Kagan Meat and Poultry in Woodbridge, N.Y.; and Henry’s Delicatessen, on Manhattan’s Lower East Side, and believed to be owned by Israelis. Its president is Tzvika Kraut.

Alleged violations at Kagan’s enterprise were found by undercover agents, placed by Eddie Ayer, USDA compliance officer, and through round-the-clock surveillance by state kosher enforcement agents, who raided the establishment last August 24.

Rubin said that, after protracted hearings, a civil penalty of $50,000 was imposed on Kagan for allegedly selling non-kosher meat as kosher. He added that investigators found more than 1,000 pounds of suspect meat and poultry in their confiscations in Henry’s Delicatessen and Kagan’s establishment.

The rabbi said that if Kagan pays the $50,000 fine, it will not constitute an admission of guilt. If he does not pay, the case will be turned over to Abrams’ office for collection. The Attorney General’s office and the regional USDA office can open the case for criminal prosecution. Kagan has 10 days to respond to a notice from the Department of Agriculture and Markets, formally notifying him of the fine, dating from the time the letter was mailed, Rubin said.

A civil penalty of $25,800 on charges of offering non-kosher meats and poultry as kosher was leveled against Henry’s Delicatessen. Kosher enforcement agents seized the suspect foods on November 29.

Rubin said his division intends to impose civil penalties of $38,400 against Georgetown Kosher Meats and $35,800 against Royal Crown, in addition to the criminal charges.

FURTHER ACTIONS CITED

He said the civil penalties were not maximums and they could be increased if the continuing probe turns up new evidence of alleged violations. He said a search warrant has been issued by the Attomey General’s office against Royal Crown, seeking records of the firm’s transactions, giving the Attorney General wide freedom, without time limits, to explore the company’s operations.

Rubin said none of the fines had been paid and he expected the targeted firms to make “unprecedented legal moves” to contest the fines because the fines are so large, probably the largest ever levied against any violations of kosher consumer protection laws anywhere in the United States. He said his inspectors suspect that Kagan may have been doing business “in the same manner” for decades.

Summarizing the investigation, Rubin said “We are continuing through a joint task force of the Attorney General’s prosecution bureau, headed by William Darling, and a USDA task force, headed by James McCormack, meat compliance inspector for the USDA, operating out of New York City.”

Abrams said the charges involved “a despicable practice: substituting non-kosher meats for kosher and foisting off on their unwitting customers these fraudulent products.” He said “the criminal prosecution of these cases and the heavy civil penalties …. are indications of the seriousness with which we view this revolting act.”