Saturday, May 08, 1999
Rabbi admits theft charge
Five others plead in bingo fraud
BY DAN HORN
The Cincinnati Enquirer
Rabbi Lustig
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A Roselawn rabbi pleaded guilty to a theft charge Friday in what prosecutors describe as a “massive fraud” involving instant bingo games throughout Greater Cincinnati.
Rabbi Jacob Lustig and five others from his Kneseth Israel Congregation stood side by side as they entered the pleas in Hamilton County Common Pleas Court.
Prosecutors said the pleas were the result of a nearly three-year investigation that found the synagogue's bingo operation had taken in more than $2 million between 1996 and 1997 but reported only about $500,000 to authorities.
“They completely disregarded the law,” said Hamilton County Prosecutor Mike Allen. “It's unbelievable to me that these people thought they could get away with such massive fraud.”
He said the theft was uncovered by a task force that included the Cincinnati Police Division, the prosecutor's office and the Ohio Attorney General's Office.
Attorney General Betty Montgomery said the investigation into the synagogue's 19 instant bingo outlets began in fall 1996.
“Ohio law is clear: Charitable bingo proceeds must go to charity, not in the pockets of bingo operators,” Ms. Montgomery said Friday.
Rabbi Lustig, 72, has been with the synagogue for about 20 years and oversees the congregation's bingo operations.
He pleaded guilty to one count of theft and could be sentenced to probation or up to a year in prison. Judge Fred Cartolano will sentence him June 8.
Two other defendants — Gerel Payne, 47, and Ralph Lipsky, 74 — also pleaded guilty to theft and face the same possible sentences. Prosecutors say they helped the rabbi run the bingo operation.
Three others — Sam Semet, 66, Kathleen Dewey, 54, and Virginia Eggleston, 39 — pleaded guilty to a misdemeanor charge of gambling and face up to six months in jail.
All six entered “pleas to information,” which means they pleaded guilty to the charges before prosecutors sought formal indictments from a grand jury.
Mr. Allen said the pleas were not part of a sentencing deal and the defendants could go to jail or receive probation.
He did, however, say that “action yet to come would serve as an object lesson to all of the breadth of this crime.”
During the plea hearing Friday, assistant prosecutor Jerry Kunkel said all proceeds of bingo operations are required to go to charity. He also noted that workers in those operations must be volunteers.
He said workers at the bingo booths were paid by the hour for selling the instant, or “scratch off,” bingo cards.
Mr. Kunkel acknowledged, however, that prosecutors may have had trouble proving that the synagogue's unreported money was taken without the consent of the charity.
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