Monday, January 2, 2006

So more staff can be hired for Bolivia’s education, health and social programs, President Elect Evo Morales announced that he and his cabinet will take a 50% pay cut. The 46-year-old leader slashed his future salary of about $3600 a month to $1800.

Raising Bolivia from its situation as one of the poorest countries in the world is a primary intention of the president elect. “It’s a question of sharing the country’s situation among us all.” said Morales. “This is a democratic revolution and we will answer the Bolivian people’s call.”

Cabinet ministers and all 157 members of Morales’ party that were elected to Congress will also take a 50% pay cut, Morales said. The salaries of 157 substitute congressmen will be eliminated.

Morales, who is known across the country as “Evo”, is Bolivia’s first native Indian president. Growing up in poverty has marked his politics. He often says, “For a handful of people there is money, for the others, repression.”

Evo will soon move from his rented single room of a shared house to Bolivia’s presidential palace.

Morales also met with business and civic leaders on Tuesday in a conciliatory meeting. Morales said his government would create a stable legal and economic environment to attract investment and create jobs which was applauded by the Bolivian elite.

“I do not have a professional education, but it is important that we co-operate. You have the professional capacity, I have the social consciousness”.

Friday, February 6, 2009

Denny’s 1,600 chain restaurants across North America, Puerto Rico and Canada, were slammed for eight hours Tuesday with hungry patrons standing on sidewalks for nearly two hours to take advantage of the $5.99 “Grand Slam Breakfast” giveaway.

Denny’s, a dining chain with annual revenue of about $900 million, has advertised in a TV commercial Sunday during the Super Bowl XLIII that it would give away its signature breakfast from 6 a.m. until 2 p.m. local time Tuesday, at all its restaurants in the U.S., Canada and Puerto Rico, while supplies lasted.

Denny’s Diner has promoted the iconic dish giveaway heavily, with a bold 30-second appeal ad that aired during the third quarter of the Super Bowl 43 on Sunday, plus another 15-second ad during the post-game show, offering a free breakfast to some 90 million viewers. In addition, it has placed a full-page ad in USA Today‘s Monday edition. The promotion was further announced on The Today Show and notices were also sent out to the chain’s “Denny’s Breakfast Club” members.

The NBC ad, which was bought to unveil a new promotion for customers squeezed by the recession, may have cost as much as $3 million, said Nelson Marchioli, CEO of Denny’s Corp. Super Bowl XLIII’s 30-second commercial time slot costs $2.4 million–$3 million for the airtime alone, excluding production and talent costs.

The game was televised live by the US NBC Sunday Night Football and Canada’s CTV Television Network. BayTSP has reported that, “as of 10 a.m. Wednesday, commercials that initially aired during NBC’s Super Bowl XLIII broadcast subsequently had been watched online more than 28 million times.”

“The promotion has a total cost of $5 million U.S., which includes $3 million for the commercial on NBC,” said a Denny’s spokesman, noting also that the company received about $50 million in news coverage, most of which was positive. According to a Denny’s representative, two million people walked through the restaurant chains’ doors Tuesday, and each Denny’s restaurant served an average of 130 Grand Slams per hour.

With the “Denny’s Feeds America” promotion, the company has reported 14 million hits on its Web site between Sunday night and Monday morning. Denny’s shares rose 6 cents, or 3.1 percent, to $1.98 in afternoon trading. The stock has traded in a range of $1.18 to $4.10 over the past 52 weeks.

“Denny’s free Grand Slam” has ranked in the top 10 Google searches early Tuesday and fell to No. 18 by the end of the promotion, while “denny s locations” was #9 on Google Trends, which tracks fast-rising searches. It has also held spots No. 1 (Denny’s) and 7 (Grand Slam) on Twitter‘s trending topics. It has generated much chat on Twitter, garnering 1,700 tweets on Tuesday, compared with its average of 59. Doritos, winner of the USA TODAY survey for best Super Bowl spot ad, had 933 mentions after reaching a peak of almost 3,300.

The idea of the TV ad was to get people to come in and re-evaluate Denny’s Diner. “A lot of people have forgotten what Denny’s is, or they think they know, while we’ve come out with a whole lot of new products. We felt like we needed to jump start the brand,” Denny’s Chief Marketing and Innovation Officer Mark Chmiel said.

“We’re celebrating the Grand Slam this year,” Chmiel said. According to the company’s financial data, on January 15 Denny’s reported systemwide comparable-store sales for the fourth quarter were down 6.1 percent, compared to a 0.2 percent decline from the same period in 2007.

According to Robert Gonzalez, public relations company Hill & Knowlton spokesman, Denny’s has expected at least 2 million people to eat a free Grand Slam by the end of the promotion. “Every restaurant is packed with people and lines,” Gonzalez said. “Everything today is about fast. People are on the go, and they’re eating fast food. It’s cutting into sit-down dining,” he added.

“Each of the more than 1,500 Denny’s were planning to make about 100 Grand Slams an hour,” Denny’s spokeswoman Cori Rice said. It had predicted it will have served about 1,400 people per location, more than five times the normal volume. “Grand Slam Breakfast” is a four-item option on its menu, consisting of two pancakes, two eggs, two strips of bacon and two sausage links. It weighs in at 44 grams of fat, 56 carbohydrates and 770 calories.

Nationwide, Denny’s expected to sell about 2 million Grand Slams — about 15 percent of the annual tally. According to Mark Chmiel, chief marketing operator and executive vice president, the diner chain has reported approximately 2 million meals worth more than $12 million were given away nationwide and each Denny’s restaurant served an average of 130 Grand Slams per hour. It estimated it has earned about $50 million worth of public relations following the free Grand Slam campaign, Chmiel said.

The company is also experimenting with a Grand Slam Burrito and also has introduced for this year, a Grand Slamwich, which includes eggs, bacon, sausage and cheese between two slices of bread, with a teaspoon serving. “It already has shown strong consumer appeal,” said Chmiel. The company has received flood of e-mails and letters proving the positive impact of the Grand Slam campaign and commercials on its customers.

Chmiel also announced he’s planning a third major promotion in this year’s third quarter, which happens to include another major sporting event, the World Series. “That’s one we’re definitely looking at,” he said.

Jobless Paris Winslow of downtown San Francisco, California has joined the long line which stretched from the front door on Mission Street, between Fourth and Fifth streets, to the corner of Fourth and up the block. “The economy is getting kind of scary. This line looks like those pictures of soup kitchen lines during the 1929 Great Depression,” Winslow said.

“I came all the way from San Francisco for a free $6 meal, Isn’t that pathetic? A year ago, I never would have done this. These days I’m willing to put my ego on the back burner,” said Stephen Weller, a jobless contractor who waited with his dog, Emmett. California Denny’s restaurant managers have issued rain checks (for free chilled meals, as security backed by actual bacon) to anyone who failed to get in by the 2 p.m. deadline.

A big eater could also “Slam It Up” by adding any two additional items for 99 cents each to their meal. Customers on Tuesday were also handed “bounceback” coupon books that include offers for additional free menu items with purchases. Chicago Tribune reporter Kevin Pang has eaten five free Grand Slams on Tuesday at five different Denny’s Diners in four hours. He claims to have consumed 4,100 calories at Harwood Heights, 5:36 a.m, at Schiller Park, 6:22 a.m., at Franklin Park, 7:08 a.m., at Melrose Park, 7:41 a.m. and at Grand Slam No. 5 Oak Park, 8:57 a.m.

“The Grand Slam has always been a Denny’s favorite. This free offer is our way of reacquainting America with Denny’s real breakfast and with the Denny’s brand,” Denny’s CEO Nelson Marchioli said in a statement. In 1977s, the Grand Slam started as a baseball-related promotion in Atlanta, Georgia. Its normal price averages around $5.99. Marchioli said the event was also a way to kick-off its “Year of the Grand Slam” promotion. Denny’s claimed it has sold 12.5 million Grand Slams a year.

“The economy’s tough and people are jumping all the way to fast food to try to figure it out. We all use fast food, whether it’s for time or convenience or for money. But you can go to Denny’s and you don’t have to give up a real breakfast and that was the whole focus of our commercial,” Marchioli explained. McDonald’s (MCD, Fortune 500) has done well during this economic meltdown since the global recession pushes people toward less expensive dining options.

McDonald’s has announced plans Wednesday to open 175 new restaurants in China this year despite the global economic crisis, thereby increasing the number of outlets in China by 17 percent, from 1,050 currently. Last month, McDonald’s 2008 net profit has risen 80 percent from 2007 to 4.3 billion dollars.

Marchioli has also introduced Denny’s $4 Weekday Express Slam, which is a streamlined version of the Grand Slam. “I want to take back share. For too long, we have allowed others to take share, whether it was Starbucks or McDonald’s. They’re fine competitors and I don’t expect to take all their business from them, but I’d like a little bit back,” Marchioli noted.

According to Rafi Mohammed, author of “The Art of Pricing,” people love free. “It triggers a Pavlovian response in people,” said Mohammed. If Pavlov’s dogs salivate when a bell rings, Denny’s free Grand Slam breakfast has attracted 2 million hungry customers. “I believe free maximizes trial and doesn’t devalue a product as long as it is a rare event. Aside from the cost, the major downside is that it attracts customers who truly have no intention of coming back,” he added.

According to University of Portland consumer psychology professor Deana Julka, people flock to free promotions amid just a few dollars saving because there’s nothing in life for free. “So when there’s something out there that costs nothing, it creates a psychological rush. Especially in these times when people feel overtaxed or overburden, there’s an internal reward people feel by getting something for free,” she said. “It’s being thrifty and feeling like you beat the system. Free really hits the spot for a lot of people,” Julka added.

“Free is an emotional hot button. When free is concerned, there is no downside – or, at least, we don’t see the downside immediately. So we overvalue everything that is free. People love free stuff, particularly when money’s tight,” said Dan Ariely, a business professor at Duke University, author of “Predictably Irrational: The Hidden Forces That Shape Our Decisions.”

Experts, however, explained these moves need to be done sparingly, since giveaways can teeter in the balance between desperation and a well designed marketing ploy. “Giving your product away for free is not worth it because it undermines your brand value,” said branding expert Rob Frankel, saying people are attached to the idea of it being free, than the actual product itself.

Free giveaways are not anything new in the food industry. “It just feels good when you can get something for free and not have to worry about it coming out of your wallet,” Frankel noted. Dunkin’ Donuts and Panera Bread all have had free coffee and food promos last year. “In November, Starbucks gave away free cup of coffee to anyone who came in on Election Day. Have you taken a look at how Starbucks is doing now?” Last week it has announced it would shut down 300 stores, in addition to the 600 it already planned to close.

On February 24, IHOP will be offering a free shortstack to every customer to encourage donations (in place of the cost) for Childrens Miracle Network. The International House of Pancakes (IHOP) is a United States-based restaurant chain that specializes in breakfast foods and is owned by DineEquity. The chain had more than 1950 restaurants in all 50 states, the U.S. Virgin Islands, Canada and Mexico. Since 2006, IHOP’s National Pancake Day celebration has raised over $1.85 million. In 2008, over 1.5 million pancakes (12 miles high if they were stacked) were given to customers for donations.

Denny’s (“Denny’s Diner”) is a full-service diner/family restaurant chain in the United States. It operates over 2,500 restaurants in the United States (including Puerto Rico), Canada, Curaçao, Costa Rica, El Salvador, Jamaica, Japan, Mexico, and New Zealand). The resto chain is known for always being open, serving breakfast, lunch, dinner, and dessert around the clock.

Today, Denny’s operates about 1,600 restaurants in all 50 U.S. states, Canada and Mexico. There are also about 578 Denny’s restaurants in Japan operated under a license by a subsidiary of Seven & I Holdings, seven Denny’s locations in New Zealand, and approximately 38 Denny’s diners in the United States. Denny’s headquarters is now located in Spartanburg, South Carolina, headquarters of the parent company Trans World Corporation that acquired Denny’s in 1987.

Denny’s was historically notable for offering a free meal to anyone on their birthday. The offer included a limited number of meal options from a special birthday menu. The promotional ritual ceased in 1993, though occasionally individual franchises will continue the tradition.

In 2008, Denny’s has ceased to be in the ranks among the top diner chains in the $83 billion breakfast market, whose top five firms — McDonald’s, Starbucks, Dunkin’ Donuts, Burger King and IHOP — accounted for 22 percent of the volume. “A lot of consumers have written Denny’s off their let’s-go-there list,” said Ron Paul, president of Technomic, a consulting firm.

Super Bowl XLIII was an American football game between the American Football Conference champion Pittsburgh Steelers (15–4) and the National Football Conference champion Arizona Cardinals (12–8) to decide the National Football League (NFL) champion for the 2008 NFL season. It was played on February 1, 2009, at Raymond James Stadiumin Tampa, Florida. It has an attendance of 70,774 and 98.7 million viewers. Pittsburgh earned its sixth Super Bowl win, thus securing sole possession of the record for most Super Bowl wins.

Wednesday, June 11, 2008

A European Union-United States summit held in Slovenia produced a draft declaration outlining the groups’ future cooperation on climate change, energy security and financial stability. Yesterday was the final day of the summit, the last EU-US summit that US President George W. Bush will attend in his current role.

Hopes of a major breakthrough on the topic of climate change were low going into the summit. The foreign minister of Slovenia, Dimitrij Rupel, commented last week that, “on climate change, the positions are split.” Members of the 27-nation EU have regularly expressed their dissatisfaction with the US for not having ratified the Kyoto Protocol, an agreement with binding greenhouse gas emissions targets. Doubts about the summit’s efficacy were not misplaced, as no firm targets were set for actions on climate change.

The EU and US agreed to cooperate increasingly in science and technology research for energy and climate change purposes, including carbon capture and storage, and hydrogen fuel cells. The EU reaffirmed its commitments as per the Kyoto Protocol, but the US restated that developing countries such as China and India must be made to sign up to such global agreements before it will sign on.

Steps to secure energy sources for the future were also discussed. Promoting the creation of multiple pipelines to supply more natural gas to Europe was determined a priority, despite the fact that this would encourage an increase in emissions from gas use.

Bush commented in a follow-up news conference: “I think we can get a global agreement on climate change during my presidency – just so you know.”

Saturday, October 6, 2007

Few artists ever penetrate the subconscious level of American culture the way RuPaul Andre Charles did with the 1993 album Supermodel of the World. It was groundbreaking not only because in the midst of the Grunge phenomenon did Charles have a dance hit on MTV, but because he did it as RuPaul, formerly known as Starbooty, a supermodel drag queen with a message: love everyone. A duet with Elton John, an endorsement deal with MAC cosmetics, an eponymous talk show on VH-1 and roles in film propelled RuPaul into the new millennium.

In July, RuPaul’s movie Starrbooty began playing at film festivals and it is set to be released on DVD October 31st. Wikinews reporter David Shankbone recently spoke with RuPaul by telephone in Los Angeles, where she is to appear on stage for DIVAS Simply Singing!, a benefit for HIV-AIDS.

DS: How are you doing?

RP: Everything is great. I just settled into my new hotel room in downtown Los Angeles. I have never stayed downtown, so I wanted to try it out. L.A. is one of those traditional big cities where nobody goes downtown, but they are trying to change that.

DS: How do you like Los Angeles?

RP: I love L.A. I’m from San Diego, and I lived here for six years. It took me four years to fall in love with it and then those last two years I had fallen head over heels in love with it. Where are you from?

DS: Me? I’m from all over. I have lived in 17 cities, six states and three countries.

RP: Where were you when you were 15?

DS: Georgia, in a small town at the bottom of Fulton County called Palmetto.

RP: When I was in Georgia I went to South Fulton Technical School. The last high school I ever went to was…actually, I don’t remember the name of it.

DS: Do you miss Atlanta?

RP: I miss the Atlanta that I lived in. That Atlanta is long gone. It’s like a childhood friend who underwent head to toe plastic surgery and who I don’t recognize anymore. It’s not that I don’t like it; I do like it. It’s just not the Atlanta that I grew up with. It looks different because it went through that boomtown phase and so it has been transient. What made Georgia Georgia to me is gone. The last time I stayed in a hotel there my room was overlooking a construction site, and I realized the building that was torn down was a building that I had seen get built. And it had been torn down to build a new building. It was something you don’t expect to see in your lifetime.

DS: What did that signify to you?

RP: What it showed me is that the mentality in Atlanta is that much of their history means nothing. For so many years they did a good job preserving. Don’t get me wrong, I’m not a preservationist. It’s just an interesting observation.

DS: In 2004 when you released your third album, Red Hot, it received a good deal of play in the clubs and on dance radio, but very little press coverage. On your blog you discussed how you felt betrayed by the entertainment industry and, in particular, the gay press. What happened?

RP: Well, betrayed might be the wrong word. ‘Betrayed’ alludes to an idea that there was some kind of a promise made to me, and there never was. More so, I was disappointed. I don’t feel like it was a betrayal. Nobody promises anything in show business and you understand that from day one.

But, I don’t know what happened. It seemed I couldn’t get press on my album unless I was willing to play into the role that the mainstream press has assigned to gay people, which is as servants of straight ideals.

DS: Do you mean as court jesters?

RP: Not court jesters, because that also plays into that mentality. We as humans find it easy to categorize people so that we know how to feel comfortable with them; so that we don’t feel threatened. If someone falls outside of that categorization, we feel threatened and we search our psyche to put them into a category that we feel comfortable with. The mainstream media and the gay press find it hard to accept me as…just…

DS: Everything you are?

RP: Everything that I am.

DS: It seems like years ago, and my recollection might be fuzzy, but it seems like I read a mainstream media piece that talked about how you wanted to break out of the RuPaul ‘character’ and be seen as more than just RuPaul.

RP: Well, RuPaul is my real name and that’s who I am and who I have always been. There’s the product RuPaul that I have sold in business. Does the product feel like it’s been put into a box? Could you be more clear? It’s a hard question to answer.

DS: That you wanted to be seen as more than just RuPaul the drag queen, but also for the man and versatile artist that you are.

RP: That’s not on target. What other people think of me is not my business. What I do is what I do. How people see me doesn’t change what I decide to do. I don’t choose projects so people don’t see me as one thing or another. I choose projects that excite me. I think the problem is that people refuse to understand what drag is outside of their own belief system. A friend of mine recently did the Oprah show about transgendered youth. It was obvious that we, as a culture, have a hard time trying to understand the difference between a drag queen, transsexual, and a transgender, yet we find it very easy to know the difference between the American baseball league and the National baseball league, when they are both so similar. We’ll learn the difference to that. One of my hobbies is to research and go underneath ideas to discover why certain ones stay in place while others do not. Like Adam and Eve, which is a flimsy fairytale story, yet it is something that people believe; what, exactly, keeps it in place?

DS: What keeps people from knowing the difference between what is real and important, and what is not?

RP: Our belief systems. If you are a Christian then your belief system doesn’t allow for transgender or any of those things, and you then are going to have a vested interest in not understanding that. Why? Because if one peg in your belief system doesn’t work or doesn’t fit, the whole thing will crumble. So some people won’t understand the difference between a transvestite and transsexual. They will not understand that no matter how hard you force them to because it will mean deconstructing their whole belief system. If they understand Adam and Eve is a parable or fairytale, they then have to rethink their entire belief system.

As to me being seen as whatever, I was more likely commenting on the phenomenon of our culture. I am creative, and I am all of those things you mention, and doing one thing out there and people seeing it, it doesn’t matter if people know all that about me or not.

DS: Recently I interviewed Natasha Khan of the band Bat for Lashes, and she is considered by many to be one of the real up-and-coming artists in music today. Her band was up for the Mercury Prize in England. When I asked her where she drew inspiration from, she mentioned what really got her recently was the 1960’s and 70’s psychedelic drag queen performance art, such as seen in Jack Smith and the Destruction of Atlantis, The Cockettes and Paris Is Burning. What do you think when you hear an artist in her twenties looking to that era of drag performance art for inspiration?

RP: The first thing I think of when I hear that is that young kids are always looking for the ‘rock and roll’ answer to give. It’s very clever to give that answer. She’s asked that a lot: “Where do you get your inspiration?” And what she gave you is the best sound bite she could; it’s a really a good sound bite. I don’t know about Jack Smith and the Destruction of Atlantis, but I know about The Cockettes and Paris Is Burning. What I think about when I hear that is there are all these art school kids and when they get an understanding of how the press works, and how your sound bite will affect the interview, they go for the best.

DS: You think her answer was contrived?

RP: I think all answers are really contrived. Everything is contrived; the whole world is an illusion. Coming up and seeing kids dressed in Goth or hip hop clothes, when you go beneath all that, you have to ask: what is that really? You understand they are affected, pretentious. There’s nothing wrong with that, but it’s how we see things. I love Paris Is Burning.

DS: Has the Iraq War affected you at all?

RP: Absolutely. It’s not good, I don’t like it, and it makes me want to enjoy this moment a lot more and be very appreciative. Like when I’m on a hike in a canyon and it smells good and there aren’t bombs dropping.

DS: Do you think there is a lot of apathy in the culture?

RP: There’s apathy, and there’s a lot of anti-depressants and that probably lends a big contribution to the apathy. We have iPods and GPS systems and all these things to distract us.

DS: Do you ever work the current political culture into your art?

RP: No, I don’t. Every time I bat my eyelashes it’s a political statement. The drag I come from has always been a critique of our society, so the act is defiant in and of itself in a patriarchal society such as ours. It’s an act of treason.

DS: What do you think of young performance artists working in drag today?

RP: I don’t know of any. I don’t know of any. Because the gay culture is obsessed with everything straight and femininity has been under attack for so many years, there aren’t any up and coming drag artists. Gay culture isn’t paying attention to it, and straight people don’t either. There aren’t any drag clubs to go to in New York. I see more drag clubs in Los Angeles than in New York, which is so odd because L.A. has never been about club culture.

DS: Michael Musto told me something that was opposite of what you said. He said he felt that the younger gays, the ones who are up-and-coming, are over the body fascism and more willing to embrace their feminine sides.

RP: I think they are redefining what femininity is, but I still think there is a lot of negativity associated with true femininity. Do boys wear eyeliner and dress in skinny jeans now? Yes, they do. But it’s still a heavily patriarchal culture and you never see two men in Star magazine, or the Queer Eye guys at a premiere, the way you see Ellen and her girlfriend—where they are all, ‘Oh, look how cute’—without a negative connotation to it. There is a definite prejudice towards men who use femininity as part of their palette; their emotional palette, their physical palette. Is that changing? It’s changing in ways that don’t advance the cause of femininity. I’m not talking frilly-laced pink things or Hello Kitty stuff. I’m talking about goddess energy, intuition and feelings. That is still under attack, and it has gotten worse. That’s why you wouldn’t get someone covering the RuPaul album, or why they say people aren’t tuning into the Katie Couric show. Sure, they can say ‘Oh, RuPaul’s album sucks’ and ‘Katie Couric is awful’; but that’s not really true. It’s about what our culture finds important, and what’s important are things that support patriarchal power. The only feminine thing supported in this struggle is Pamela Anderson and Jessica Simpson, things that support our patriarchal culture.

Thursday, June 30, 2005

Seoul —

The OhmyNews International Citizen Reporters’ Forum (see previous report) concluded on Saturday with several speeches and a visit to sponsoring companies in South Korea’s technology sector. Some invited “citizen reporters” from around the world extended their stay by several days to tour the country. Since the conclusion of the conference, presentations and transcripts have been published on the OhmyNews web site. [1]

Friday, September 22, 2006

The upcoming 2006 Mississauga municipal election, to be held November 13, features an array of candidates looking to represent their wards in city council.

Wikinews contributor Nicholas Moreau has contacted as many candidates as possible, including Tony Ciufo, asking them to answer common questions sent in an email. There is no incumbent in the newly created ward; the sixteen resident competing for the position are Shah Rukh Alam, John Briers, Jamie Dookie, Dale D’Souza, Prag Euclid, Adnan Hashmi, Elias Hazineh, Jack Janiak, Fasal Javaid, Craig Lawrence, Sue M. McFadden, Patrick Mendes, Barbara Polis, Graziano Roti, Ali Tahmourpour, and Scott Wilson.

Monday, December 24, 2007

Eight men and five Brookyln-based Spinka charitable organizations have been charged with tax fraud and money laundering. Six have been arrested, and two are still at large.

The men charged are Naftali Tzi Weisz, 59, a Grand Rabbi from Brooklyn; Gabbai Moseh E. Zigelman, 60, also from Brooklyn and Weisz’ assistant; Yaacov Zeivald, 43, of Valley Village; Yosef Nachum Naiman, 55, of Los Angeles; Alan Jay Friedman, 43, of Los Angeles; Joseph Roth, 66, an international accounts manager at a bank in Israel from Tel Aviv; diamond merchant Moshe Arie Lazar, 60; and Jacob Ivan Kantor, 71, an attorney from Tel Aviv. The first six were arrested last Wednesday, and four of them have been released on bail. The FBI believes Lazar to be in Israel. Kantor is also believed to be in Israel according to other reports.

The charitiable organizations named as defendants in the charges are Yeshiva Imrei Yosef, Yeshivath Spinka, Central Rabbinical Seminary, Machne Sva Rotzohn, and Mesivta Imrei Yosef Spinka. The FBI alleges that these charities issued fraudulent receipts for bogus charitable contributions and were the beneficiaries of fees charged for transfers of funds as part of a money laundering conspiracy.

By a 37-count grand jury indictment that was unsealed on Wednesday morning, Weisz and Zigelman are charged with one count of conspiracy to defraud the Internal Revenue Service and other crimes, 19 counts of mail fraud, one money laundering conspiracy count, 11 counts of international money laundering, and one count of operating an illegal money remitting business. Zigelman is in addition charged with two counts of aiding in the preparation of fraudulent income tax returns. Zeivald, Lazar, Naiman, and Friedman are charged in the main conspiracy count and with operating an illegal money remitting business. Zeivald is in addition charged with one count of mail fraud. Roth is charged in both conspiracy counts; several mail fraud counts; and several international money laundering counts. Kantor is charged in both of the conspiracy counts and several international money laundering counts.

The charges laid are that over a period of 10 years the conspirators solicited USD8.7 million in contributions to these charitable organizations, promising to secretly refund to the donors up to 95%, allowing the donors to claim the full amounts of the donations as tax deductions on their federal income tax returns. According to the FBI, this was done in two ways: Some donors received cash payments through an underground money transfer network involving Zeivald, Naiman, Friedman, and Lazar, some of whom operated businesses in and around the Los Angeles jewelry district. Other donors were reimbursed via loans made from the United States branch of an Israeli bank, organized by Roth and Kantor and secured on funds secretly held in that bank in Israel, to which the donations had been sent via wire transfer.

Several of the Brooklyn charitable organizations are schools. One such is Yeshiva Imrei Yosef, a private Orthodox Jewish school for boys in grades PK–12 with 312 students, which is one of 5000 such organizations approved for charitable donations by the Jewish Community Endowment Fund of the Jewish Community Federation of San Francisco. The Jewish Journal of Greater Los Angeles draws a parallel between these charges and the creation of bogus schools in the case of New Square, quoting Jonathan Sarna, a professor of American Jewish history at Brandeis University, as saying “I think that in Eastern Europe, especially where corruption was rampant, it was very common for Jews to engage in, shall we say, ‘extra-legal activities’ when they believed they were doing so not for their personal gain but for the good of the community or for some higher purpose.”

His observation is that defrauding a corrupt government is part of the culture that has sometimes been carried in to the United States, and that people justify it when they believe that the money is going towards Jewish education. “I think the idea is that Jewish education is so important and so expensive and the folks say to themselves, ‘we’re forced to pay for public education which we don’t use’, and they manage to sometimes justify in their own minds these kinds of activities that are for the sake of a holy end.”

Sarna states that violating the law is not condoned by Jewish communities in the U.S., a sentiment that has been echoed in reactions from the Los Angeles Jewish community, such as that by Rabbi Meyer H. May, president of the Rabbinical Council of California: “One thing is clear: The Orthodox community deplores any attempt to defraud the government of the United States, and there is no excuse for it, and there’s no rationalizations that are acceptable. […] It’s against the Torah and it’s against our moral foundation. At the same time, regarding these specific individuals, they should be allowed to have a fair trial, as everyone is innocent until proven guilty.”

The FBI’s press release contains a similar reminder of the presumption of innocence.

Calls by the New York Times were unable to obtain any comments on the case from the defendants.