Rabbi Ysiroel Goldstein, 58, the former director and founder of the Chabad of Poway, admitted to secretly refunding millions in contributions to the synagogue and providing donors with fake receipts, federal prosecutors in San Diego said in a statement. Prosecutors said at least 20 donors claimed massive tax deductions while Goldstein kept 10 percent of the contribution and pocketed more than $500,000, prosecutors said. Tax losses to the Internal Revenue Service were estimated at more than $1.5 million in eight years.
Prosecutors said Goldstein was under investigation for the scheme on April 27, 2019, when officials say 19-year-old John T. Earnest opened fire on the Chabad, killing one longtime worshiper and injuring three, including Goldstein, who lost his right index finger.
Goldstein pleaded guilty to conspiracy to defraud the United States and commit wire fraud, prosecutors said. He faces a maximum sentence of five years in prison, prosecutors said. Five of Goldstein’s associates pleaded guilty to wire fraud, money laundering, filing a false tax return and other crimes.