Assistant U.S. Attorneys Valerie Chu (619) 546-6750 and Michelle L. Wasserman (619) 546-8431

SUMMARY OF PRESS RELEASE – April 13, 2022

SAN DIEGO — Elliot Adler, an attorney and founding partner of a San Diego boutique law firm, pleaded guilty in federal court today to conspiring with former Chabad of Poway Rabbi Yisroel Goldstein to to commit tax evasion.

According to his plea agreement, Adler admitted that from at least 2010 until October 2018 he participated in a so-called “90/10” tax scheme with Rabbi Goldstein. Specifically, Adler gave money to Rabbi Goldstein that was supposed to be a donation to Chabad of Poway. Goldstein then secretly redirected ninety percent of the funds to Adler, keeping ten percent of the funds as fees. None of the funds donated were actually given to Chabad as a charitable donation.

Adler then falsely claimed that the fraudulent donations were tax deductible on his tax returns, which allowed him to reduce his personal income tax by approximately $500,000 (cumulative) for the tax years. 2011 to 2017.

To accomplish the plan, Adler and Goldstein communicated using coded language. Goldstein referred to the money as “challah”, the source of the money as “the baker” and invited the co-conspirators to “pack the tefillin” when he offered to meet to receive checks or deliver money . For example, on Thursday, January 7, 2016, Goldstein texted Adler: “Hello, I have the challah[.] What time?” That same day, Adler replied via text message, “Monday morning 8am at shul or today before 12pm if you can come to my office.” Goldstein then replied, “Monday @ 8 is fine.” The On Monday, January 11, 2016, Goldstein deposited a check from Adler for $30,000 payable to Chabad of Poway.

On or about December 29, 2017, Goldstein deposited two sequentially numbered checks from Adler, one for $180,000 and the other for $980,000. On Friday, January 5, 2018, Goldstein sent Adler a coded text message offering that they “get together and wrap the teffiline.” A few days later, on January 10, 2018, Goldstein wired approximately $1 million to a wholesale and retail jeweler to purchase 246 Swiss Fortuna 1 oz. rectangular gold bars, 246 Canadian Maple Leaf 1 oz. gold coins and 246 American Eagle 1 oz. gold coins. On January 17, 2018, Goldstein sent another coded message to Adler asking, “[w]hen can you come [i]n for a tefilin wrap? I’m ready for you.” Goldstein delivered the gold to Adler the next day. Adler nevertheless claimed in his 2017 tax returns that he had donated more than $1 million to charity, fraudulently reducing his tax liability in 2017 of approximately $447,000.

Adler and Goldstein took extra steps to conceal their scheme from authorities. On or about October 18, 2018, Goldstein told Adler that he was under investigation by the IRS and had been the subject of an undercover operation related to the escape tax. Goldstein sought Adler’s help in proving, wrongly, that Goldstein, and not Adler, was in possession of the gold coins purchased with Adler’s alleged gift. In the early hours of October 19, 2018, Adler arrived at Goldstein’s residence and returned the gold coins.

In July 2020, Rabbi Goldstein pleaded guilty to fraud charges, admitting that he participated in a complex multi-year, multi-million dollar tax evasion scheme and other financial deceptions involving the theft of public money. Rabbi Goldstein’s plea agreement described the fraud scheme with Adler.

Adler is the eleventh person to plead guilty to the crimes uncovered in this investigation. Two other people agreed to grant deferred prosecution following the investigation.

“Elliot Adler conspired to commit $500,000 tax evasion through false religious donations,” said U.S. Attorney Randy S. Grossman. “Tax evasion is a serious crime that directly affects our communities, and the U.S. Attorney’s Office is committed to working with the IRS, FBI, and our other law enforcement partners to bring those responsible to justice. .” Grossman thanked the prosecution team and officers for their hard work on this case.

“This defendant was part of an elaborate, years-long financial scheme to fraudulently claim charitable contributions in an effort to avoid paying taxes,” said FBI Special Agent in Charge Stacey Moy. “The FBI and our federal partners will continue to vigorously pursue those who abuse tax laws for their own financial gain – which also diminishes public confidence in charitable donations and harms organizations that rely on these donations.”

“For years Mr. Adler shied away from his duty to pay his fair share, then doubled down in an unsuccessful attempt to cover up his million dollar tax evasion with Rabbi Goldstein,” the statement said. Special Agent in Charge Ryan L. Korner of the IRS. Local Criminal Investigation Bureau in Los Angeles. “Tax revenues fund our critical infrastructure, our national defense and fund social programs like health care, education and social security. A 1% increase or decrease in tax compliance equates to approximately $35 billion in tax revenue used to serve the American public. IRS Criminal Investigation is committed to eliminating tax schemes and working with our law enforcement partners to bring financial fraudsters to justice.

Adler is next due to appear in a sentencing hearing on July 11, 2022, before Judge Cynthia Ann Bashant.

FEES SUMMARY Case number 22cr0821

Elliot Adler Age: 45 San Diego, CA

Conspiracy to Commit Tax Evasion, Violating Title 18, USC 371

Maximum penalty: five years in prison

DEFENDANTS ALREADY CHARGED AND SUMMARY OF CHARGES

Israel Goldstein, Case Number 20CR1916-BAS Age: 58 years old

Conspiracy to defraud the United States and commit wire fraud, violating Title 18, USC 371

Maximum penalty: five years in prison

Alexander Avergoon, Case Number 19CR2955-BAS Age: 44 San Diego

Wire fraud, in violation of Title 18, USC 1343

Maximum penalty: twenty years in prison

Aggravated Identity Theft, Violating Title 18, USC 1028A

Maximum penalty: minimum two consecutive years in prison

Money Laundering, Violating Title 18, USC 1956(a)(1)(B)(i)

Maximum penalty: twenty years in prison

Bruce Baker, case number 20CR1912-BAS Age: 74 years old

Conspiracy to defraud the United States and file false tax returns, contrary to Title 18, USC 371

Maximum penalty: five years in prison

Bijan Moossazadeh, case number 20CR1893-BAS Age: 63 years old

Filing a false tax return, in violation of Title 26, USC 7206(1)

Maximum penalty: three years in prison

Yousef Shemirani, case number 20CR1895-BAS Age: 74 years old

Filing a false tax return, in violation of Title 26, USC 7206(1)

Maximum penalty: three years in prison

Boris Shkoller, case number 20CR1913-BAS Age: 83 years old

Filing a false tax return, in violation of Title 26, USC 7206(1)

Maximum penalty: three years in prison

Mendel Goldstein, Case number 20CR2772-BAS Age: 63 Brooklyn, NY

Conspiracy to defraud the United States and commit wire fraud, violating Title 18, USC 371

Maximum penalty: five years in prison

Stuart Weinstock, Case Number 21CR0042-BAS Age: 64 Escondido, CA

Filing a false tax return, in violation of Title 26, USC §7206(1)

Maximum penalty: three years in prison

Jason Ellis, Case Number 21CR2200-BAS Age: 42 Poway, California

Filing a false tax return, in violation of Title 26, USC §7206(1)

Maximum penalty: three years in prison

Yehuda Hadjadj, case number 22CR148-BAS Age: 47 La Jolla, CA

Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371

Maximum penalty: five years in prison

Rotem Cooper, Case Number 20CR3968-BAS Age: 54 San Diego

Deferred Prosecution Agreement

Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371

Igor Shtilkind, case number 20CR3955-BAS Age: 55

Deferred Prosecution Agreement

Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371

INVESTIGATION AGENCIES

Federal Bureau of Investigation

Internal Revenue Service