RHINEBECK — A Rhinebeck Jewish group's plans to build a cultural and religious center in the town have been temporarily derailed by a real estate agent the organization later learned had filed for bankruptcy, the group's leader said.
Real Estate Agent’s Bankruptcy Hits Chabad
RHINEBECK — A Rhinebeck Jewish group’s plans to build a cultural and religious center in the town have been temporarily derailed by a real estate agent the organization later learned had filed for bankruptcy, the group’s leader said.
Rabbi Hanoch Hecht, director of the Rhinebeck Jewish Center and co-director of Chabad of Dutchess County, said Rhinebeck real estate agent Lance Lavender had accepted an $8,500 down payment from him for the purchase of some land in the town for the new center. Hecht said Lavender told him the money had been placed in an escrow account and would be returned to the group if the deal fell through.
When negotiations for the land sale broke down last month, Hecht said he asked Lavender for the money and was told it was not available. A short time later, the rabbi said, he learned Lavender had filed under Chapter 7 of the federal bankruptcy law and had no assets.
“Now I’m told I must get in line with the rest of the creditors,” Hecht said Wednesday.
Lavender’s attorney, Michael Wrobel, confirmed Wednesday Lavender was in bankruptcy proceedings.
“Creditors have the opportunity to ask for money if any is found,” Wrobel said. “The judge has extended the period of time for creditors to do that, but at this point, (Lavender) has no assets.”
Hecht said he had met with a Dutchess County assistant district attorney, Edward Whitesell, and asked if Lavender could be charged with a crime.
“He told me Mr. Lavender could not be prosecuted,” Hecht said. “I was very disappointed with that answer.
”He (Lavender) wronged us and he wronged other people,“ he said. ”It doesn’t matter if it’s an individual or a house of worship. Stealing is still stealing.“
Whitesell said he sympathized with Hecht’s plight, but in order to prove Lavender had committed the crime of larceny, he would have to prove he intended to steal the money at the time he placed it in the escrow account.
”The issue with all these kinds of cases is the issue of intent,“ the prosecutor said. ”The question is: Is what he did a violation of a contract or is it a crime? And if you can’t prove criminal intent, then the person is stuck having to file a civil suit. In this case, it’s a civil issue, but there’s no money to collect.“
Lee Park, spokesman for state Attorney General Andrew Cuomo, said the agency sometimes prosecutes such cases, either in civil or criminal court, if investigators can establish a pattern of such behavior. He said Hecht had discussed his case with Vincent Bradley, assistant attorney general in charge of the Poughkeepsie office.
”It would be helpful if anyone else who feels they have been defrauded (by Lavender) contact our office, because the more complaints we get, maybe we can build a case,“ Park said.
In the meantime, Hecht said, his organization was resuming fundraising efforts to build the Jewish Center.
”What happened has inspired us to fight this darkness with a little bit of light, to work that much harder to make the center a reality,” the rabbi said.
it is not a crime to go bankrupt
i am shocked that the rabbi would push for criminal proceedings since the individual did not do a crime. Going poor is not a crime. And unfortunately twhat happened was unfortunate and probably unavoidable. I do not have all the facts but it seems to me that like every other investor in this economy he is simply out of funds.
nussi
I dont know whos right and whos wrong but when you go out on “shlichos” and into machlokos you are sure to have bad happen to you!
As Reagan said
As President Reagan used to say “Trust but verify”
If the money was put in escrow it would have been legally safe and returned. Evidently it was put in a personal or business account.
I think next time the young Rabbi won’t be so trusting. Let’s hope if it’s the congragation’s money they will be understanding.
Moshe S.
It is not a crime to enter a bankruptcy protection.
Depositing a check that supposed to be held in an escrow account is however a crime!!! What does this have to do with machlokes?
Why should Chabad of Rhinebeck pay for some thief’s drug addiction? Money was collected for a specific purpose – buying a property. I believe that the rabbi has a clear obligation to the donors to exercise every permitted by Torah and NYS law action to recover the funds.
If the rabbi would not pursue this case, I for once would STOP supporting his organization. I don’t make enough money for supply a random Rhinebeck goy with means to buy cocaine.
Crime
Using Someones elses Check for your own problems IS stealing and is a crime.
Bankrupcy is when you can’t pay DEBT (not stealing).
However if the money is already LOST GONE – what would help for CHABAD to prosecute?? thats not their Job.
vavremi
I know everyone will bash me but this is the shliachs fault. before you give someone $8k cash do some reaserch make sure he is honest and not someone that is in debt!! you are dealing with tzedakah money from the community and you need to be extra careful. next time ake sure you can trust the person and that the deal dosnt fall. remember if it sounds to good to be true it aint true
mnchm
how do you know that they didnt do research? did they tell you directly? you should get your facts before you announce your own assumptions
sam
i think he will loose more then gain from taking this to the public over 8500!!!!!!
if he has $$$ then get over it and if he doesnt have $$ he should not have baught it in the first place!! u must chose your battles!
A. Lawyeer
Money taken for “Escrow” is NOT his. Nor is it part of the bankruptcy estate. For the agent to divert it and use it IS A CRIME OF LARCENY. The DA is nothing but a lazy SOB. Not that it helps when there are no assets.
To whom was the check written? An action against the bank may stand for conversion. Was the Agent licensed? He may have had professional liability insurance against which you can collect. Did he have a firm or partners against whom you can collect. Don’t take this lying down, and don’t take the DA’s lying as “Halacha l’Moshe M’Sinai”.
a poshitar yid
his lawyer should hav made sure the 8 k went into escrow act,
Anouther jewish lawyer
Agreed. A broker usualy has insurance. Move to lift the bankrupcy stay because of fraud & and go after the insurance Money or at least argue that Escrow money should not become part of the bankrupcy estate and should be paid first. If the cost of hiering a lawyer is too much, speek to the Bankrupcy Trustee see if he could put you first or argue fraud and dismissal of the bankruptcy.
another lawyer
As mentioned above, money place in escrow may only be used for the purpose of which it was placed in that escrow for. Anything else is larceny. Plain and smile! Did Lance Lavender used the money to pay the seller or an underwrite? If not it is probable larceny.
a yeshivah bocur says
it will cost you twice as much to hire a lawyer to get you the $8,500
all the lyers above, get back to work.
rabbi you are young, so you will make use of this lesson. just dont forget it
clue less
If he used a real estate lawyer – the lawyer should have protected his money
karen
what the broker did was wrong! Plain and simple. I am a real estate broker in the Rhinebeck area and I tell you that commingling funds is in fact a crime! However, you must ask yourselves, is this fight going to be worth the time and effort. Either pursue it to the end, no matter what the cost, or forget about it and move on. No sense in speaking of something that you are not willing to pursue.
I am sorry that this happened to you. It gives us all a bad name in the industry.
anon
This broker has been a scammer since day 1. I know him well and can assure you he cannot be trusted.