ANATOMY OF A BANKRUPTCY FRAUD

A Case Study And Expose'
  "Not For Profit" Religious Cult Hijacks Bankruptcy Courts..."For Profit!"
A "Faith Based" Fraud

 This case epitomizes the scandalous abuse of our bankruptcy courts where the unscrupulous, and the extremely wealthy have hijacked a system that was intended to provide a "fresh start" for those who are deserving of a second chance. Bankruptcy fraud is especially repugnant when perpetrated by "faith based" organizations that are charged with exemplifying the moral and ethical convictions of our communities. Masquerading in the garments of the righteous, they have found sanctuary and a bully pulpit in our federal courts. They use their superior organizational wealth, predatory stealth, and non-profit status to vanquish their victims, senior citizens, and those who would stand up to them as they violate every sacred covenant they profess to represent. Their immoral and unethical assaults on "small businesses," "mom & pops,"  and "Outsiders" are an affront to common decency and are exacerbated by their masterful manipulation of our bankruptcy system. There is little that separates them from any other crime syndicate!

These deep pocketed "debtors" with time and money on their side, will utilize the nuances of bankruptcy law, i.e. Distract, Divert, Delay, Deny, Deplete, Default, to force their creditors into their own bankruptcys, from which they will never recover. The "debtors" thereby trample over the carcasses of their creditors without a backward glance, as they move on to their next victim...all, with the assistance of our courts, as they assure the destroyed creditors left in their wake, that the process was served. The courts themselves have profited from this economic moebius, and have thus signaled their commitment to prospestive deep poketed "debtors" that they will have a friend in the court!

FBI Director Robert Mueller Stated:
"Has it gotten that bad-that people believe such deceptions and crimes are just the normal way of doing business?"

Paul J. McNulty (Deputy Attorney General)
“Today we send a clear message to those who abuse, for their own criminal financial gain, the bankruptcy system’s promise of a fresh start to honest Americans. A bankruptcy filing is often the last step of a series of criminal acts, including mortgage fraud, bank fraud, mail fraud, money laundering, and government program fraud. Bankruptcy fraud is often the tip of the criminal iceberg, and that makes these prosecutions so important.” This case has it all!!

Clifford J. White III, (Director of the Executive Office of U.S. Trustees)
“Bankruptcy fraud must not be tolerated, if our bankruptcy system is to serve its purpose of helping the honest debtor in need of financial relief, Operation Truth or Consequences highlights the commitment of the Department of Justice and our law enforcement partners to vigorously investigate and prosecute bankruptcy fraud wherever it occurs.”
Sanctions
against The Law Firm of Backenroth, Frankel, and Krinsky, LLP and also against Jack Lefkowitz (the culpable parties) has been filed with the court:

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK
One Bowling Green, 7th FL, New York, NY 10004
Chief Judge Stuart M. Bernstein
"This case doesn't pass the smell test"
Case No. 04-16410 Filed October 4, 2004; Ch 7 Case No. 04-04545 Filed November 15, 2004; AP Case No. 04-17525 Filed November 24, 2004;
Ch 11Case No. 07-01937 Filed July 16, 2007; APCase No. 07-02052 Filed September 25, 2007; APCase No. 08-01265 Filed June 16, 2008, AP
THE PARTIES (UIB)
Fraudulent Filing
First Fraudulent Chapter 11 Filing: Non existent corporation, and no tax id#
Second Fraudulent Chapter 11 Filing: Tax id # of a different corporation.
This case deals with a conspiracy to commit bankruptcy fraud by a wealthy real estate developer, Jack Lefkowitz, a Rabbi; Abraham C Steinwurzel, their legal counsel, Backenroth, Frankel & Krinsky, LLP; (BFK) and other John & Jane Doe persons, known and unknown to creditor, Helen-May Holdings, LLC. (HMH) Together, they have conspired in the voluntary chapter 11 bankruptcy cases listed above. A tax exempt religious corporation, Kolel Mateh Efraim, (with Abraham C Steinwurzel as its trustee) and a purposefully created shell corporation: Mateh Ephraim, LLC; a/k/a Kollel, Mateh Efraim, LLC; (with Jack Lefkowitz as its managing member) entered into a conspiracy to defraud a senior citizen couple (creditor, HMH, Irene Griffin and husband, Paul Griffin) of their life savings . Together with selective funding from Maskil El Dal, Inc., a tax exempt corporation, incorporated in the state of New York, with its headquarters in Jerusalem, Israel...this is yet another alter ego of the debtor and of which he stated that he is a trustee. ( Lacking Attorney General approval as required by law, a document transferring title of a property owned by a non-profit corporation, Maskil El Dal, Inc. of 1526 52nd Street Brooklyn, NY was made to Bluma Lefkowitz, (his wife) of 1526 52nd Street, Brooklyn, NY .) Lefkowitz and Steinwurzel have conspired to abuse and manipulate the bankruptcy system in order to fraudulently occupy, and wrest ownership of the creditor's resort property. in the town of Cochecton, Sullivan County, New York. During the four years of a bankruptcy stay, that denied the creditor's, Paul & Irene Griffin access to their own property, the debtor continued to subvert the course of the proceedings, while managing to distract the court from the basic issues of their bankruptcy. Their strategy has been one of legal gamesmanship:
  1. Distract: from their fraudulent filings and schedules,
  2. Divert: with extraneous issues and false allegations
  3. Delay: through adjournments, and convoluted process
  4. Deny: creditor access to, or income from their own property
  5. Deplete: creditor's resources and force them into
  6. Default: thus gaining ownership of the property through straw buyers at a consequential foreclosure.
Their bankruptcy filing was legally flawed from the very beginning, (so they filed another! and another!) and amazingly, they still managed to distract the court's attention from any, and all of their legal impediments. They filed under several similar, but different corporate aliases in an attempt to confuse the identity of the true debtor, and to shelter the tax exempt religious corporation from breaches and violations. It is important to understand that by filing in the name of a non-existent entity, the debtor was free to commit all manner of fraud with impunity since it does not legally exist! The court was served with documentary evidence of this in December of 2004, but chose to overlook this fundamental fraud. At court hearings they claimed not to have any money, while they provisioned for, and populated the resort property with "hundreds of paying guests!" Indeed, in their first two months of occupancy, they reported taking in over $300,000.00. Yet, the debtor's bankruptcy schedules are wholly, and fraudulently vacuous. However, bankruptcy fraud is rarely committed in a vacuum, and this case is not lacking for conspirators. Most notably the debtor's legal counsel of Backenroth, Frankel and Krinsky LLP has knowingly and willingly conspired in this sanctionable dance of Racketeer Influenced and Corrupt Organizations. (RICO)

STUPID BANKRUPTCY LAWYER TRICKS
Unauthorized Settlement

Facing overwhelming evidence that the creditor's attorney was not authorized to enter into a settlement, (including said attorney's own affidavit, pleadings and depositions) the debtor nevertheless mounted a vigorous, eighteen month frenzied campaign in an effort to cram down a settlement that had never been confirmed. The debtor also filed for several adjournments during the Unauthorized Settlement phase of their chapter 11 bankruptcy, thus delaying a decision, so that the debtor could continue to occupy the property without paying for it. O bviously, this was a covertly conspired diversion that was very much to the debtor's advantage.
"Stupid Bankruptcy Lawyer Tricks."
(The Bankruptcy Litigation Blog; Steve Jakubowsky; Coleman Law Firm.)
An Inconvenient Truth
At a hearing held on July 20, 2005 Gerald Orseck, attorney purporting to represent the creditor, Helen-May Holding's, LLC (Irene Griffin & husband, Paul Griffin) was conveniently, and suspiciously "compromised" when Orseck made an unauthorized settlement with debtor/alter ego, Kolel Mateh Efraim.  With due deliberation and malice of forethought, he had falsely advised his own clients that this hearing would be adjourned, and so The Griffins were not present in court while he conducted his stealthy betrayal. Also convenient, is the fact that the debtors and all of their witnesses were not likewise advised of any adjournment and so curiously, they were all present in court for this manipulation of due process. The transcript demonstrates that although only scheduled for a hearing on the issues of adequate protection, and lifting the bankruptcy stay, the debtors however, seized upon the opportunity presented by the absence of the creditor to "cram-down" this covertly conspired settlement. The debtors and their witnesses actively participated in the proceedings while HMH (The Griffins) were denied reciprocity. Subsequently, a trial was held and the court ruled that Gerald Orseck "had lied" to his clients and to the court, and that he had, in fact entered into an unauthorized settlement with the debtor. This distraction from the issues of the debtor's bankruptcy amounted to an eighteen month  diversion, followed by a further delay with an appeal of the decision, and subsequent adjournments. All of this served to deny The Griffins access to, or income from their property, while depleting any resources they might have had, and thus moving them nearer to a default on their mortgage debt. Obviously, the debtor's best interests were well served, while the entire process was completely avoidable! It has since been discovered that Orseck has a history of not representing his client's best interests, and one can only wonder at the "quid pro quo" that took place between Orseck, the debtors, and their attorneys, Backenroth, Frankle and Krinsky, LLP. Subsequently, The Griffins gave Orseck every opportunity to "correct his mistake," however, that failing...he was fired! Preceding his own pre-trial deposition, Gerald Orseck had contacted the principals of HMH and their attorneys, suggesting that they meet so that they could "agree" on his own testimony. He was immediately and flatly rebuffed. During a recess at his own deposition, Orseck actually approached the principals of HMH (The Griffins), and asked them, how they would like for him to testify! He stated, "That's why I wanted to get together with you." (Pangs of guilt or remorse for an unauthorized settlement?) The answer was an emphatic: "just tell the truth!" HMH (The Griffins)  immediately discontinued any further conversation. As an officer of the court, Gerald Orseck failed to recognize what was patently obvious to HMH (The Griffins): that it was totally "inappropriate" if not outright illegal for him to approach his former clients and current adversaries in such a manner. HMH (The Griffins) has filed a complaint against Gerald Orseck with the New York State Bar Association's Third Judicial District and Standards Of Professional Conduct. The offense having taken place on July 20, 2005, while to this date, August 8, 2009, Gerald Orseck has yet to be held accountable for this gross breach of his legal and ethical duty as an officer of the court. So much for the legal profession policing its own!
Property Denied!
In the meantime, the "debtor in possession" continued to occupy and "rent out," or sublease the property for his own aggrandizement while the creditor, HMH (The Griffins) paid for the debtor's perversion of the bankruptcy system. (Mortgage, insurance & taxes!) Not only were the owners judicially denied their property rights, but they were required to pay for the unethical, immoral, and fraudulent occupation of their own property. That this travesty was perpetrated by those purporting to be the moral and spiritual leaders within the community makes this case all the more egregious! The owner has, in essence been forced to subsidize this debtor's voluntary chapter 11 bankruptcy case! From October of 2004 to November of 2007, an automatic stay denied the legitimate property owners access to, and remuneration from their own property. Furthermore, the proceedings have been convoluted so as to deprive them of the necessary "adequate protection" as provided for by common bankruptcy law. In yet another convoluted and diversionary tactic, the debtor filed false allegations against the creditor that were proved to be completely frivolous and yet, there were no consequences to the debtor for making such perjurious allegations. (The debtor claimed that HMH principals (Paul & Irene Griffin) entered onto the Meadows property, [albeit their own property] and actually evicted forty families from the property. Subsequent documentary evidence surfaced proving that no such eviction occurred. The debtors then revised their already sworn testimony to falsely allege that it had been a constructive eviction. The documentary evidence also disproved this allegation....and still there were no consequences to the debtor for their perjured filings. Quite the contrary! Judge Blackshear based his punitive ruling of a totally "inadequate protection" on the debtor's false allegations.)  Meanwhile, HMH (The Griffins) attempted to bring to the court's attention the deterioration of the property under the debtor's occupation. The court did not even require the "debtor in possession" to perform general maintenance on the property, and thus it had been destroyed by abuse, neglect and vandalism. (Pictures)  The owners were obligated to pay for a property that they were prohibited by law from going near. Truth Takes A Back Seat-Opinion
The Classic Shell Game
From the very beginning, the debtor filed this case with deliberately deceptive and convoluted corporate permutations, dba's and a/k/a's. After three years of legal "gamesmanship," the reasoning behind this was exposed with the debtor's filing of an objection to a judgment based on the creditor's incidental inclusion of Kolel Mateh Efraim, along with Kollel Mateh Efraim, LLC and Mateh Efraim, LLC. The alter ego/debtor claims that Kolel Mateh Efraim is a separate religious corporation and is not affiliated with this bankruptcy. And yet, in a sworn affidavit the alter ego of the debtor, Jack Lefkowitz admits that they have been operating the property as "a religious, tax exempt!" Department of Health permits confirm this as being the case. In a contract dated May 18, 2004, Aron Fixler (purchaser) assigned the contract to Kolel Mateh Efraim, and Rabbi Abraham C Steinwurzel (Trustee of Kollel Mateh Efraim!) Additionally, numerous court documents, as well as tax id numbers, have identified Kollel Mateh Efraim as the "Debtor" in this case! (04-16410) Some of these filings are inclusive of the debtor's own, and are a fundamental basis for a nefarious, and fraudulent deception. This deliberate convolution of nomenclature, coupled with cash payments and selective funding from Maskil El Dal, LLC, presents the classic picture of deception, money laundering and bankruptcy fraud! Jack Lefkowitz signed an Occupancy Agreement (June 3, 2004) and the Extension Agreement (Sept 22 2004) for Kolel Mateh Efraim! as President! of the religious corporation. In a hearing held on July 20th, 2005, Jack Lefkowitz identified himself as Managing Member when associated with the LLC. In his June 2007 affidavit in support, Rabbi Abraham Steinwurzel, identifies himself as, "at all relevant times" I am a trustee for Kollel Mateh Efraim, a religious corporation. He goes on to say that "the debtor has subsisted on insider loans "from its congregation." Rabbi Abraham C Steinwurzel is also listed as the Manager for Camp Mateh Efraim at The Meadows, 1141 CR 114, Cochecton, NY 12726. (The property being defrauded in this bankruptcy!) The irrefutable nexus between these entities cannot be denied. However, in order to highlight their frauds, and obvious attempts to convolute and conceal the true identity of the debtor, it was necessary for HMH to file a Declaratory Motion.

The Cover-Up
In an effort to sanitize their expositive bankruptcy filing, the debtor, in collusion with their legal counsel created a second bankruptcy filing of virtually the same case, but purged it of the true identity of the debtor, Kolel Mateh Efraim! It is apparent that the debtor(s) realized that they had inadvertently identified and exposed the true contract vendee, and thus, the debtor in this case. Futhermore, their initial chapter 11 filing was completely fraudulent since Kollel Mateh Efraim, LLC does not now, and did not then exist. Lacking any tax id number at all, the original documents were filed by the debtor's reputable law firm of Backenroth, Frankel and Krinsky, LLP. (BFK, LLP) A first year law student knows better. Why this glaring omission was ignored by the bankruptcy court under Judge Cornelius Blackshear (retired) is yet another question! In their Motion For An Order of November 1, 2004, Helen-May Holdings, LLC alerted the court that there was something wrong with this filing and that the debtor as filed, did not exist. Realizing that HMH (The Griffins) was on to their fraud, the debtor simply filed a new case (04-17525) with a new caption, "Mateh Efraim, LLC aka Kollel Mateh Efraim, LLC." However, this time they included a tax id number that identified the religious corporation Kolel Mateh Efraim, and not either of the preceding corporate entities, thus creating a second fraudulent bankruptcy filing, and further perpetuating their conspiracy to defraud HMH (The Griffins). Their reasoning behind this can only be due to the fact that neither of the those corporate aliases had ever filed for a tax id number, and so they believed that the tax id number of the religious corporation (the alter ego of the debtor) would either go unnoticed or would serve to confuse HMH (The Griffins) and the court. All of this was formulated in a conspiracy to defraud by Backenroth, Frankel & Krinsky, LLP, (Judiciary Law 487) Jack Lefkowitz, Rabbi Abraham Steinwurzel, Aron Fixler, and other John & Jane Doe, known and unknown to HMH.

The only entity in this case that is bound by an assignment of a contract, is Kolel Mateh Efraim with the tax id #: 11-2831693. However, using the tax id number of the religious corporation, Mateh Efraim, LLC, has fraudulently filed for chapter 11 protection in this case in a clear attempt to subvert the judicial process, and thereby protect the religious corporation (the assignee) from the violations, breaches and frauds perpetrated by the assignee's alter ego, and occupier of the property. In November of 2006, and in an effort to bring clarity to the true identity of the debtor, the court ordered the duplicate case dismissed and contemporaneously, and for the third time, amended the caption of the case. (04-16410) In their June 19, 2007 "Reply", Helen-May Holdings, LLC attempted once again to clarify the "flow chart of fraud" for the court, by exposing the debtor's alter egos for their deliberate conspiracy, and deceptive filings. As a further attempt to convolute the issue, and no doubt in response to the courts' June, 2007 ruling that it would render a decision based on the tax id number, the alter ego/debtor filed (June, 2007) for a new tax id number (for the LLC) from the IRS believing that would serve as evidence that Mateh Efraim, LLC (Ephraim?) would be identified as the debtor. That horse left the barn in May, 2004 with the "Assignment," again in June, 2004 with the "Occupancy Agreement," again in September, 2004 with the "Extension Agreement," and again in November of 2004 when they amended their initial bankruptcy filing by using the tax id of the religious corporation. As of January, 2009, the court has yet to rule on the true identity of the debtor while HMH (The Griffins) has filed a declaratory motion which clearly identifies the conspirators, their frauds, and their violations of the RICO statutes. HMH has also filed a motion for sanctions against the "Culpable Parties" including the alter ego/debtor's counsel Backenroth, Frankel and Krinsky LLP.
Arrogance!
On May 16, 2007, after the automatic stay was finally lifted, and in an effort to thwart an impending sale of the property, the debtor placed a notice in "Hamodia" magazine. Translation from Hebrew: "To All Holy Institutions of Our Brethren of Israel, To Make it Known and to Reveal That Anybody to Whom a Proposal to Purchase Is Made of the Meadows Hotel Fosterdale New York Which Is Now in Possession of Camp Mateh Ephraim Please Call Us First, So as Not to Cause Us a Great Loss of Money 646-334-7386 718-541-1236." The telephone number associated with this despicable violation clearly and unequivocally belongs to Abraham C Steinwurzel. Although brought to the attention of the court, there has been no consequences. In yet a further violation of law, and in an effort to circumvent the rulings of the bankruptcy court regarding their eviction, on June 26th, 2007, the debtor did file yet another cause of action in Sullivan County Supreme Court, Case No. 07-01937. This was a clear violation of the bankruptcy code since the debtor did not make an application to the court, nor to the US trustee for approval to retain new counsel and to file a new case, as required by Law. This alter ego/debtor claims to have no money, (Rabbi Steinwurzel: "the debtor has no money") and yet is able to retain fleets of law firms, to file reams of documents, and a multitude of new case numbers. In this redundant and deceptive filing, the alter ego/debtor seeks to revisit all of the issues currently being heard in Judge Bernstein's court. Additionally, the alter ego/debtor filed for an injunction against an eviction, and a restraining order against HMH (The Griffins). As with their initial chapter 11 case # 04-16410, this new case has at its genesis, false allegations intended to defame, and to bias the court against HMH (The Griffins). Under penalty of perjury, the sworn affidavit of alter ego/debtor Jack Lefkowitz in support of this motion is replete with more fraudulent statements. He swore that on June 22, 2007, HMH (The Griffins)  entered onto The Meadows property and made threats. However, independent sworn affidavits, hotel receipts, and telephone records prove that from June 20, 2007 through June 25, 2007 HMH (The Griffins)  were three hundred miles distant from the property. These alter ego/debtors have yet to be held accountable for any of their false allegations, perjury, conspiracy or fraud! This new case was ultimately remanded back to the bankruptcy court following more costly litigation. (Distract, Divert, Delay, Deny, Deplete, Default) The alter ego/debtor also managed to resist all of HMH's efforts to evict them from the property, and so they managed to survive yet another summer utilizing the creditor's property without paying for that privilege. Once again, this alter ego/debtor demonstrates that it has all of the capital resources necessary for perpetual litigation, but none to pay its debts!
Obstruction Of Justice
Subsequent to our counsel’s filing for sanctions against the alter ego/debtors and their counsel, and in a very clear effort to subvert the moral and ethical representation afforded us by our own counsel, alter ego/debtor, Jack Lefkowitz did send an email directly to our attorney, David Carlebach that can only be categorized as threatening, bigoted, and disgustingly inappropriate, to say the very least. It was an attack on our attorney’s excellent character, and we are offended by this immoral, and unethical violation of the client/attorney relationship that most certainly qualifies as obstruction of justice. In a clear effort to further influence our attorney, David Carlebach has met with a barrage of telephone calls from members of the Brooklyn, NY congregation appealing to his sense of community in deference to his legal, moral and ethical obligations to his client. We have great empathy for the dilemma facing our attorney, and we know that with full disclosure, the community will also come to respect him for his clear sightedness, and unwavering advocacy in the face of the "legal thuggery" orchestrated in a conspiracy to defraud by Backenroth, Frankel and Krinsky LLP and their clients.

A New Chapter
Judge Bernstein: "this case doesn't pass the smell test,"
At a hearing in federal bankruptcy court held on October 25, 2007, Judge Bernstein converted the case to chapter 7, and assigned a trustee. The transcript of the hearing further elucidates the necessity for a comprehensive investigation into the affairs of the debtor and their alter egos: the religious organization; Kollel Mateh Efraim, LLC and all other aka's, Maskil El Dal, LLC, Jack Lefkowitz, Abraham C Steinwurzel. In accordance with that mandate, Robert Geltzer (Trustee) was assigned, and is represented by Robert A Wolf, a partner of Squire Sanders, LLP.

Believing that together we formed a partnership in the exposition of the alter ego/debtor's many violations of bankruptcy code, HMH (The Griffins) has endeavored to nurture a relationship built on trust and support for the trustee's mandate. HMH (The Griffins) felt confident that after four years of frivolous litigation, they were on the verge of complete judicial vindication and financial salvation. HMH (The Griffins) was, however, apprehensive when the trustee twice requested adjournments regarding his purported right to assume or reject the contract. (Adjournments have long been the alter ego/debtor's stratagem, and HMH's nemesis.) Furthering HMH's concern was the fact that the alter ego/debtor, Jack Lefkowitz had expressed to the trustee his own interest in bidding for the two parcels adjacent to The Meadows property. This is the bankruptcy alter ego/debtor himself, who claims to have no money! Although this "impropriety" may, or may not be in violation of law, it is however, totally unethical and unconscionable.

At a hearing in federal bankruptcy court, held on January 31st, 2008, the trustee reported to the court that "the debtors, and their alter-ego: the religious corporation, had been interchangeable for years as suited their own purposes." And so...with the promise of the long awaited "blue sky" and although not in their own best interests, HMH (The Griffins) never the less agreed to the adjournments requested by the trustee regarding his purported right to assume or reject the debtor's pre-petition contract.

Trustee?
Curiously, since his appointment in October, 2007, the trustee has been aggressively pursuing the debtor's purported "rights" to creditor, HMH (The Griffins) property, The Meadows! (Emphasis added!) On March 11, 2008 the trustee preemptively filed a motion to the court for approval of the bidding procedures on creditor HMH (The Griffins) property! This took HMH (The Griffins) completely by surprise since the trustee had yet to settle the issue regarding whether they even have a right to assume or reject the contract, and which they had sought to adjourn. While HMH was in the process of preparing a timely answer to the motion, the trustee proceeded to offer the contract rights "for sale" as though the motion had already been "so ordered!" In a preemptive mailing with a service list of thirty-five, (in which creditor, HMH (The Griffins) was conspicuous by its absence) and also in an advertisement noticed in the New York Times, and GEM Auctioneers website, the trustee prematurely announced his intentions to auction not only the debtor's two adjoining properties, but also the contract rights to HMH (The Griffins) property. Furthermore, the trustee failed to disclose that those disputed contract rights, if they exist at all, are not without major impediments and costs.

Following a hotly contested lifting of the bankruptcy stay and a costly eviction process, HMH (The Griffins) believed that they were finally free to market and sell their own property, The Meadows, and to that end they retained the services of several real estate agencies. Those agencies reported that their telephone lines had been active and that several potential buyers had been identified and negotiations were ongoing. By prematurely offering the contract rights for auction in the NY Times and on GEM Auctioneers website, the trustee had effectively shut down all of the aforementioned negotiations.

Also, lurking in the background, and warning potential purchasers to stay away from the Meadows, has been none other than the chapter 7 alter ego/debtor himself, Jack Lefkowitz. One realtor reported that his own client had been warned off by Jack Lefkowitz. Still another interested party approached HMH Principals, (The Griffins) stating that he was very much aware of all that had transpired regarding Jack Lefkowitz, and his bankruptcy. He voiced his apprehensions and his legitimate concerns that Jack Lefkowitz would appear at his home and threaten his family. Other members of the community echoed these same concerns. The alter ego/debtors had previously placed a notice in Hamodia magazine! The community had been put on notice, and the well had been terminally poisoned!
At Issue With The Trustee
When Judge Bernstein converted this case to a chapter 7, and stated that, "this case doesn't pass the smell test," HMH (The Griffins) felt confident that with the assignment of a trustee would come an end to the convolution of process and the "six D's" of the alter ego/debtor's game plan: Distract; Divert; Delay; Deny; Deplete; Default. However, it would appear that the trustee, Robert Geltzer was attempting to fund this court mandated action against this chapter 7 alter ego/debtor by further victimizing this alter ego/debtor's victim. Instead of discovering the debtor's assets, and justly administering to the disbursement obligations of the debtor's estate, and to its only true, non insider creditor, HMH (The Griffins), it seemed that the trustee was simply perpetuating the very same legal gamesmanship and techno-babble as was the mephitic waltz of the alter ego/debtor's former counsel, Backenroth, Frankel and Krinsky LLP. (HMH (The Griffins) believes that all of the costs should be borne out of the debtor's assets, and not those of the creditor. This creditor has already been victimized enough!) The trustee grossly deviated from the mandate of the court to satisfy the affairs of the "debtor's estate" while he accused HMH (The Griffins) of being contentious. He continued to trample over the rights of HMH (The Griffins), while offering for auction a property to which he had no rights under the law. In response to HMH's above noted "Answer To Trustee's Motion," the trustee resubmitted some minor revisions as he sought approval from the court to auction HMH (The Griffins) property. These revisions were even less than conciliatory, and totally reprehensible. Effectively, he was saying, "I'm going to sell your property in a bargain basement sale, (probably to a straw buyer for the original debtor) and we'll see if I had the right to do so after it is sold." "Additionally, any effort by you to impede me as I violate your rights is deemed by me to be obstructionist."

Fruit Of The Poisoned Tree!
The trustee asserted that the debtor had a "pre bankruptcy" contractual interest in The Meadows without any obligation to "cure" the defaults under the Occupancy Agreement, and/or the Extension Agreement. Nothing could be further from the truth, nor more ignorant of the facts and contract law! That bargained for "agreement(s)" specifically states that any defaults under the occupancy agreement, and/or the extension agreement constitutes a default under the contract. The trustee's arguments are technical in nature, and are misleading, unjust and constitute a further abuse of creditor, HMH (The Griffins). He ingenuously claims that HMH (The Griffins) failed to notify the debtors of their defaults under the occupancy agreement, and also failed to provide a "ten day" notice to cure. In fact, on several occasions HMH (The Griffins) verbally warned the debtor of their defaults, and concurrently served them with no fewer than seven notifications of default, and notice to cure. The debtor simply chose to ignore all of these notifications. In sworn affidavits, the debtor denies this, but the documents don't lie.  Any semblance of rational thinking must logically conclude that the debtor had defaulted under the terms of the Occupancy and Extension agreements, and thereby under the contract. Any purported right to assume the contract is not without its obligation to the  "cure" provisions under the terms of those interdependent and unified agreements. Indeed, the debtors have gained great legal strategy, and gross financial leverage from the existence, and selective enforcement of these agreements. Their entire bankruptcy enforced stay was based in law solely by virtue of these documents. HMH (The Griffins) was not only denied the benefit of their own property during the thirty-seven months of the debtors' "stay" enforced occupancy, but was also denied any payment or adequate protection due under the terms of that very same legal document. An agreement (emphasis added) cannot be unilateral, and the trustee should thereby be similarly bound. It is not the trustee who holds a claim against HMH (The Griffins) property; it is HMH (The Griffins) that holds claims and judgments against the debtors' estate. However, a t the very genesis of all of this is the fundamental question: How do they get past the Bankruptcy Fraud? False Filings? False Schedules? False Tax id Numbers? Tax Fraud? Money Laundering? RICO? Conspiracy? Mail Fraud? Government Program Fraud? etc.? From the very first filing by this debtor, HMH (The Griffins) alerted the court that the debtor was not a legal entity, did not legally exist, and was not entitled to file a petition under federal bankruptcy code! Any purported rights of this debtor would constitute "Fruit Of The Poisoned Tree!"
Resolution Of Issues With Trustee
At a hearing in Federal Bankruptcy Court held on March 25th, 2008 Judge Bernstein upheld HMH's assertion that the trustee's purported contract rights are a matter that is still pending before the court, and therefore, the trustee had, in fact, over stepped his bounds when he advertised creditor HMH (The Griffins) property for auction. HMH was vindicated! And yet it was a shallow and a costly victory due to the fact that any potential buyers for the property who had not already been dissuaded by the devious antics of the debtor, were now completely discouraged by the well publicized and injunctive nature of the trustee's actions.

Meanwhile, during the course of this debtors' fraudulent bankruptcy, HMH (The Griffins) mortgage, interest and penalties on the property have more than tripled, and consequently, MEW Equities, the lien holder on the property, is "fast tracking" a foreclosure. And so, in order to be free to sell their own property within the short window of opportunity remaining, it became necessary for HMH (The Griffins) to reach an agreement with the trustee. While judge Bernstein acted as a mediator, and while "the elephant in the room," (the debtor's bankruptcy fraud) remained a moot topic, HMH (The Griffins) believed that the prevailing dynamic compelled them to accept terms that ran counter to their own best interests .
More Noise!
On May 5, 2008 Backenroth, Frankel and Krinsky, LLP filed an Objection to approval of the mediated settlement between the trustee and HMH (The Griffins). The very same legal firm that conceived of, and prosecuted this entire fraud, continues unabated with their legal gamesmanship, and what we believe to be their criminal culpability. However, as a consequence of this convoluted objection, and in order to be free to sell their own property, once again HMH was compelled to "carve-out" those very same bargained for rights as were intensely negotiated at a mediation in front of Judge Bernstein. Furthermore, BFK unilaterally sent a notice of its objections to all of the realtors on the trustee's list that was transparent in its attempt to confuse, frustrate and discourage any remaining realtors and potential purchasers as to HMH's ability to convey good and clear title at a closing.

Once again, our judicial system had been so dusgustingly abused as to terminally bar creditors Paul & Irene Griffin from selling their own property during the 2008 season.
Moving Forward
Truth Or Consequences
These two depositions are a "must read" for an insight into the arrogance of these debtors, and the disdain, contempt and ignorance they demonstrate for our Judicial system.
In the trustee's January 30, 2008 Deposition of Jack Lefkowitz, this arrogant debtor exhibits a total lack of respect for the trustee, and a sneering contempt for the judicial process. (Also an extremely distasteful outburst that is an affront to common decency and the memory of the victims of 9/11!) This deposition is saturated with perjury, and is self incriminating. It makes crystal clear the fact that this debtor is a serial bankruptcy filer. It is his modus operandi to overwhelm and bully unsuspecting creditors with his vast experience in subverting the bankruptcy process, by utilizing his unlimited resources for funding perpetual litigations. He also confirms that "the debtor" has subsisted on donations and insider loans "from its congregation." When asked which congregation would that be? His reply: Maskil El Dal, Inc.

On March 28th, 2008, in a Deposition of rabbi Steinwurzel, this conspirator in bankruptcy fraud and money laundering exhibits a lack of respect not only for the justice system, but for the moral and ethical values that he purports to uphold as a religious and spiritual leader of the community.

First Salvo
On June 16th, 2008, the trustee filed a complaint (Adversary Proceeding # 08-01265) against Jack Lefkowitz, and Abraham C. Steinwurzel (personally) for breach of fiduciary to the debtor. (Whomsoever the debtor or alter ego turns out to be!) HMH (The Griffins) believes this is an excellent "first salvo" in what will surely be the first of many against the alter egos of Kollel Mateh Efraim, Maskil El Dal and their numerous co-conspirators. It should also serve as evidence in support of Sanctions motions against Backenroth, Frankel and Krinsky LLP. (Without whom, none of this would have been possible!)

On July 17, 2008, the firm of Heller, Horowitz, and Feit, PC (HH&F) had been retained by the defendants, and they filed a Stipulation And Order Extending Time To Answer on behalf of Jack Lefkowitz and Abraham Steinwurzel. This firm proudly proclaims a history that speaks for itself in what many might consider its defense of greed and corruption, and many would also consider this a fundamental cause for our current fiscal crisis. On August 6, 2008 Stuart A. Blander (of HH&F, PC) representing Jack Lefkowitz and Abraham Steinwurzel filed a Motion to Dismiss the trustee's Adversary Proceeding. The trustee countered the defendant's motion with an opposition motion that not only lays out the defendants' breach of fiduciary to the debtor, but  indicates that a fraud has been perpetrated. And so as of September 16, 2008, Eli Feit of HH&F, has filed yet another memorandum in support of their motion to dismiss. As usual, their techno babble and deliberate convolutions of the cognitive English language are transparent.

At a pre-trial hearing on Sept 25, 2008 at 10:00 AM at One Bowling Green, 7th FL, New York, NY 10004, Courtroom 723 (SMB) and after arguments had been heard, Judge Bernstein rendered his ruling on the defendant's motion to dismiss...he found that their arguments did not sustain a dismissal, and ordered that the case #08-01265 proceed to a trial in January, 2009. The trustee pointed out to the court that there were related adversary actions pending before the court and he sought to schedule them into the court's docket.

Having failed in their motion to dismiss, the defendants filed a motion for a jury trial in an obvious attempt to further delay a trial. When that also failed to yield the desirable results, the defendants filed yet another motion for an adjournment based on their failure to complete their discovery within the scheduled time frame. The trustee acquiesced and the court granted the motion by rescheduling to the end of March for a final pre-trial hearing. On March 13, 2009, the attorney for the defendants filed yet another "letter" in support of their memorandum in support of their motion to dismiss. How ridiculous! Basically, their claim is that after four years of occupying creditor HMH's property without payment, there was no foul, no harm. This is all the more outrageous if they are permitted to continue bleeding the estate in this manner. On March 17, 2009 the trustee sent a letter to the court answering all of the issues raised in the defendant's letter of March 13, 2009. And still, on March 18, 2009 HH&F have yet, another bite at the apple with another letter to the court. The court made a ruling on September 25th, 2008 and the defendants are still arguing against that ruling. They have become so desensitised to arguing both sides of the same coin that they no longer know where the truth lies...nor do they care!

Not only have the defendants been permitted to continue their campaign of the six D's, (Distract, Divert, Delay, Deny, Deplete, Default) but they have also been successful in gaining adjournments that were not sanctioned by the court in the related case against the religious corporation, Kollel Mateh Efraim. (case # 07-02052) When a motion for an adjournment failed in that case, they had their attorney, Isaac Nutovic file a motion to be removed based on their failure to pay his fees. This is not the first time that they have successfully employed this tactic. The same attorney, Isaac Nutovic filed the very same motion in July of 2008, only to be rescinded upon a purported settlement of his fees. He was also successful in that incidence of effectively gaining a previously declined motion for adjournment. At a hearing held on February 3, 2009, in the very same case # 07-02052 Judge Bernstein ordered that Kollel Mateh Efraim must be represented by counsel, and that with the withdrawal of Isaac Nutovic for non-payment, Kolel Mateh Efraim must find new counsel by March 12, or be ruled in default. On March 12, 2009, Isaac Nutovic not only re-enters the case on behalf of debtor Kolel Mateh Efraim, but he re-files a motion for a jury trial. This is, of course, a red herring since a jury trial would not only fully expose all of their illegal activities, but would likely result in punitive damages. However, it serves as yet another delaying tactic. HMH (The Griffins) fail to understand why the court is permitting such a disgusting abuse of the judicial system, and also just how this entire dynamic is working toward the best fiduciary interests of the chapter 7 bankruptcy estate.

On May 28th, Judge Bernstein rendered an opinion that the alter ego/declaratory motion is an issue where the debtor has demanded a jury trial, and the trustee's motion to strike such demand is denied. Although the opinion seems to support the fact that the debtor IS the religious corporation since the Employer Identification Number 11-2831693 utilized by the debtor does in fact belong to the religious corporation, it is difficult for us to understand why this factual issue needs to proceed to a jury trial, and thus incur the additional expense. (Or...is that the point!)
The Wizard Behind The Curtain
And The Bearer Of Poisoned Fruit
Backenroth, Frankel and Krinsky LLP knowingly and deliberately conspired with the defendants as they conceived of, and perpetrated this entire fraud. They further advised, guided, and supported defendants Jack Lefkowitz, and Abraham Steinwurzel personally, as they perpetuated their breach of fiduciary. (Alleged in the June 16, 2008 complaint.) BFK has a long history with these debtor/conspirators, and they knew exactly what they were doing and with whom they were doing it as they threw every conceivable legal (and illegal) obstacle in the path of recovery for HMH (The Griffins). On May 5th, 2008, BFK maliciously setout to impede both HMH (The Griffins), and the Trustee after they had reached a mediated settlement of their issues. By thus conspiring with Lefkowitz and Steinwurzel in their quest to survive nearly four years on the property without paying for it, BFK has demonstrated that they are irredeemably "ethically challenged" and must be judicially sanctioned under Rule 130.1 and Judiciary Law §487. HMH (The Griffins) gave BFK, LLP many opportunities to "get it right" but BFK continually chose to "get it wrong!" They are complicit not only in the defendants' breach of fiduciary, but as legal professionals, they actively assisted the debtors in their "scorched earth" campaign against creditor HMH (The Griffins): i.e.: falsification of documents and schedules, frivolous filings, conspiracies, frauds, perjuries, false allegations, etc. As "officers of the court" Backenroth, Frankel and Krinsky LLP have not only violated the integrity of our courts, but in so doing they have betrayed the trust of the American people, and the basic tenets of a belief system that must remain unassailable and inviolate. HMH has filed a complaint with Chief Counsel: Alan W. Friedburg of The New York State Departmental Disciplinary Committee For The First Department.

BFK has mounted what can only be described as a personal vendetta against HMH, Paul & Irene Griffin. They have done so even to the extent of acting against the best interests of their own client (Kollel Mateh Efraim) and the creditors of the Kollel estate. BFK is deliberately seeking to sabotage a favorable settlement with the trustee in their own client’s bankruptcy solely to please their real client, the trustee of Maskil el Dal (aka Jack Lefkowitz) who is under pressure from the trustee’s lawsuits and who is also seeking to sabotage the settlement in order to gain leverage in these lawsuits. No doubt that there is an element of vengeance and retaliation for the complaint that HMH filed with the Disciplinary Committee against the firm. Due to their client (Kollel Mateh Efraim, aka Maskil El Dal, aka Jack Lefkowitz) seeking protection within the bankruptcy courts, HMH was forced into their own chapter 11 filing. Now, BFK is seeking to sabotage HMH's chapter 11 bankruptcy case, even against the interests of their own professed status as an administrative creditor.

Collusion appears to be taking place between BFK and the purported creditor Maskil El-Dal Incorporated. BFK’s purported Chapter 11 administrative claim ($450,000.00) arises from the services it allegedly rendered on behalf of the debtor, (Kollel Mateh Efraim) and in connection with the Chapter 11 phase of this case. Having served as attorneys for the Chapter 11 Debtor, BFK cannot represent any other creditor in this case. Nevertheless, on several occasions in its Objection to the trustee’s stipulation, BFK refers not only to its own purported claim against the estate, but also to that of Maskil El-Dal. Indeed, BFK explicitly states that it has conferred with the Trustee for Maskil El-Dal “and it likewise opposes both the motion and settlement” BFK clearly has no standing to make such an assertion on behalf of Maskil El-Dal, and in fact, has a conflict in doing so, particularly in light of the fact that, according to his sworn testimony at his Bankruptcy Rule 2004 examination in this case, Jack Lefkowitz, the former Managing Member of the Debtor, was also a Trustee of Maskil El-Dal. BFK’s continued references to Maskil El-Dal’s purported claims and positions in this case give rise to the question of whose interests BFK is truly pursuing in this matter. The fact that the principal of the debtor, and the principal of the purported creditor are personified in the same individual, (Jack Lefkowitz) is another cause for investigation into BFK’s conspiratorial relationship.

Additionally, it is our firm belief that BFK deliberately created the circumstances surrounding an earlier, Unauthorized Settlement in this case. (An order was never settled.) Yet, BFK spent nearly eighteen months in a unilateral effort to cloak our previous attorney with an authority that he did not have. Facing overwhelming evidence that Gerald Orseck was not authorized to enter into a settlement, (affirmed in his own admissions, affidavits, pleadings and depositions) BFK nevertheless mounted a vigorous, eighteen month frenzied campaign, complete with strategic adjournments (designed to buy their DIP client a longer “stay” on our resort property) all in an effort to cram down this non-existent settlement. The court ruled that this had, in fact been an unauthorized settlement.
A BAD ENDING OR A NEW BEGINNING?

There have been many more recent developments in this case, (April-July, 2009) that are most certainly connected. By standing up for their rights, and like deer in the headlights, HMH principals have found themselves caught in the cross-hairs of a major conspiracy, leading directly to a case of Federal Racketeering. Due to the travesty of this "Faith Based Fraud," and the complicity of our bankruptcy courts, Paul & Irene Griffin have lost their investment property to a foreclosure sale, that took place on July 24, 2009. As a further consequence of this gross miscarriage of justice, after twenty years of residence in Jeffersonville, NY, Paul & Irene are also losing their personal home and sole source of income, in a foreclosure. The culmination of our life's work...gone! Has Justice taken a vacation or has it simply become irrelevant in today's society? Is it Justice...or Just Us?

And so the words of FBI Director Robert Mueller have great significance…not only for HMH principals, but for all law-abiding Americans who still believe in the possibility of justice within our court system. " Has it gotten that bad-that people believe such deceptions and crimes are just the normal way of doing business?" (Replace the word "people" with "our courts"!!!!)

"A bankruptcy filing is often the last step of a series of criminal acts, including mortgage fraud, bank fraud, mail fraud, money laundering, and government program fraud. Bankruptcy fraud is often the tip of the criminal iceberg, and that makes these prosecutions so important.” said Deputy Attorney General Paul J. McNulty

Serial Filer
Jack Lefkowitz is also a principal in a medical imaging company, a mortgage brokerage firm, and in vast real estate holdings throughout Brooklyn, Manhattan, etc. This habitual "debtor" in the federal bankruptcy courts has nurtured courtroom relationships, and although in an unrelated case he has attracted the attention of the New York State Attorney General, he continues to seduce, hijack, conspire with, and thumb his nose at our judicial system. He is an economic terrorist who has effectively held our courts hostage, and rendered them complicit in his nefarious activities. Under his guile, our courts are demonstrating the classic symptoms of "Stockholm Syndrome." Furthermore, at a Trustee 301 hearing, Jack Lefkowitz falsely testified under oath that he was not a principal in any other corporate entity. In fact, Jack Lefkowitz is a serial bankruptcy filer, and he appears as a principal in the following corporations:

NASSAU EQUITIES LLC Jack Lefkowitz Member
1 World Trade CTR Ste 8911, New York, NY Bankruptcy
FIRST QUALITY REALTY, LLC  Jack Lefkowitz-Member
28 Debevoise St., Brooklyn, NY, (Debtor-in-Possession)
BARCLEY DWYER COMPANY, INC. Jack Lefkowitz-President
751 2ND Ave, New York, NY
 MED SCAN, INC. Jack Lefkowitz, President, CEO and owner
751 2nd Ave., 1st Floor, NYC
Olympia Capital Group, LTD
Care to Care President & CEO
755 2nd Ave. 2nd floor
New York, NY 10017
Kollel Mateh Efraim, LLC- Bankruptcy
5608 13th Ave., Brooklyn, NY 11219
Maskil El Dal, Inc.- questionable transfer of property in a not for profit
1526 52nd Street, Brooklyn, NY
 Maskil El Dal, Inc. and Jack Lefkowitz - Alleged Fraudulent Conveyance
27 North Moore Associates, LLC (The Ice House) Tribeca, NYC-(OAG Investigation)
Allou Corp Stephen E Turman representing Jack Lefkowitz, Maskil El Dal Ltd., Olympia Capital Group, Ltd. (Defendant). Hearing (RE: related document(s)[1] Complaint ...
Bankruptcy, Fraud, Arson, Bribery, Money Laundering:
Coincidentally, the above noted summons and complaint was filed against Jack Leflowitz, Maskil El Dal, Inc. and related entities in Herja Associates bankruptcy case (See: Allou Corp., above) on September 27, 2004. (The same date that Lefkowitz stopped a check and defaulted on the contract in this case. Herman Jacobs has since been sentenced to fifteen years for his role in that case.)

Jack Lefkowitz On The Web
NYS Attorney General
Supreme Court New York County "Lefkowitz was committing fraud"
New York Times
National Real Estate Investor
47th Street Photo pdf (word search Lefkowitz)

Links To Documents

Help Stamp Out Bankruptcy Fraud

Contact Creditor: HMH (The Griffins)

Legal abuse affects millions of Americans each year. Its symptoms are usually pretty obvious. It occurs when:

  • the legal system delivers injustice rather than justice.
  • one side gets special treatment ... negative or positive.
  • the facts don't matter, but a well-connected lawyer does.
  • procedure is manipulated to foil a fair result.
  • dirty pool is played by every side but yours, and the judge encourages it.
  • laws and politics are enforced selectively, unreasonably or inappropriately.
    •
The major media must focus the light of day on assaults to our justice system, and insults to our national integrity. This is the reasoning behind the first amendment. If they fail in this, their primary task, then surely we are lost as a free society. Enlighten us! Give us the facts! Opinion polls mean nothing when solicited from the uninformed.