A San Diego Attorney and founding partner of a boutique San Diego Law Firm was sentenced on Friday to one year and one day in custody for conspiring with the former Chabad of Poway Rabbi Yisroel Goldstein to commit tax fraud.
Federal prosecutors say, that the San Diego Attorney, Elliot Adler participated in the so-called “90/10” tax scheme with Rabbi Goldstein as early as 2010 through October 2018. During the scheme, Goldstein accepted charitable donations, then would send about 90% of the funds back to the donors, while pocketing the remainder.
With this scheme, Adler reduced his personal income tax liability by approximately $500,000 cumulatively for tax years 2011 through 2017.
Donors would then falsely claim on tax forms that 100% of their donations went to the Chabad, with Goldstein providing the false donors with fake receipts.
Prosecutors allege that Adler and the former Rabbi used coded language to complete the scheme. In addition to custody, Adler was ordered to pay a $20,000 fine. He was also ordered to forfeit gold coins Goldstein gave him as part of the scheme.
Adler is the 11th person to plead guilty and be sentenced in the case, while two others agreed to deferred prosecution agreements, according to the U.S. Attorney's Office.
“For years, attorney Adler chose to ignore the laws and ethical rules of conduct he swore to uphold and conspired with others using sophisticated schemes to commit tax fraud,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office. “Such schemes erode the public's trust in the legal and charitable institutions within our community, but today's sentencing ends his criminal career.”
A restitution hearing is set for October 24, 2022, at 10:30 a.m.
