SAN DIEGO (Press Release)– Retired pediatric dentist Dr. Bruce Baker of San Diego was sentenced in federal court Monday to 15 months in custody for evading over $644,000 in taxes as part of a brazen, decade’s long tax-evasion scheme with former Chabad of Poway Rabbi Yisroel Goldstein.
During Monday’s hearing, U.S. District Judge Cynthia Bashant noted that Dr. Baker is educated and sophisticated and committed the crime over a lengthy period of time. Judge Bashant agreed with the government’s position that an individual who commits a crime over an extended period of time should not avoid custody based solely on the ground that the perpetrator is now too infirm to serve a custodial sentence. Judge Bashant cited the need for general deterrence, saying, “It’s very important to send a message to the community that if you do something like this, you will spend some time in custody.” The judge ordered Baker to report to prison on July 28.
Until around 2018, Rabbi Goldstein was the director and head rabbi at Chabad of Poway, a tax-exempt religious organization. Starting as far back as the mid 1990’s, Dr. Baker engaged in various ploys with Rabbi Goldstein to cheat on his taxes. On most occasions, Dr. Baker purported to donate money to the Chabad of Poway, got a receipt for a charitable tax deduction, then received back ninety percent of his purported “donation” from Rabbi Goldstein. In this fashion, Dr. Baker paid for his child’s private school tuition, his son’s dental school and post-doctoral residency, and nearly three-quarters of a million dollars in renovations and supplies – all using funds he supposedly “donated” to the Chabad. Rabbi Goldstein also helped Baker move tens of thousands of dollars in undeclared income to bank accounts in Israel and Switzerland. Between 2004 and 2018, Dr. Baker gave at least $2.6 million in fraudulent donations to the Chabad, of which $2.4 million was funneled back to him.
In July 2020, Rabbi Goldstein pleaded guilty to fraud charges, admitting that he participated in a complex, years-long, multi-million dollar tax-evasion scheme and other financial deceptions involving theft of public money. Rabbi Goldstein’s plea agreement outlined the tax evasion scheme with Baker.
Separately, Dr. Baker agreed with another San Diego religious leader to make a sham donation of an ancient Iranian Torah, supposedly valued at $1.2 million, to that leader’s charity. Dr. Baker secured a tax deduction of $1.2 million – but in reality, the Torah did not actually exist and no $1.2 million donation was ever made.
“Dr. Baker took advantage of scheme after scheme to evade paying his fair share of taxes over many years,” said Acting U.S. Attorney Randy S. Grossman. “Those who cheat the system by exploiting the tax-exempt status of non-profits and religious organizations will be held to account for their conduct.” Grossman praised prosecutors Michelle Wasserman and Valerie Chu and FBI and IRS agents for their excellent work on this case.
“The magnitude of Mr. Baker’s tax evasion, which he committed over decades, is appalling,” said IRS Criminal Investigation, Special Agent in Charge Ryan L. Korner. “Our nation’s tax system is designed to provide vital government services to all Americans, and by stealing from it, Mr. Baker not only broke the law, he enriched himself and his family members on the backs of honest taxpayers. The IRS remains vigilant in ferreting out these types of tax schemes and will continue to work with our law enforcement partners to ensure that tax cheats are punished.”
“Dr. Bruce Baker and Rabbi Yisroel Goldstein manipulated our laws designed to reward genuine charitable giving for their own benefit. This case reinforces the FBI’s commitment to investigating these kinds of frauds which not only take advantage of our system, but can undermine the public’s confidence in our tax laws and charitable organizations around the United States,” said FBI Special Agent in Charge Suzanne Turner. “Complex investigations require teamwork and this case is no different. Our partnership with the IRS and the United States Attorney’s Office resulted in a significant punishment and what should be a warning to others who would consider committing similar crimes.”
Case Number 20CR1912-BAS
Bruce Baker
Conspiracy to Defraud the United States and File False Tax Returns, in violation of Title 18, U.S.C. §371
Maximum Penalty: Five years in prison
PREVIOUSLY CHARGED DEFENDANTS AND SUMMARY OF CHARGES
Yisroel Goldstein, Case Number 20CR1916-BAS Age: 58 Poway
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Alexander Avergoon, Case Number 19CR2955-BAS Age: 44 San Diego
Wire Fraud, in violation of Title 18, USC 1343
Maximum Penalty: Twenty years in prison
Aggravated Identity Theft, in violation of Title 18, USC 1028A
Maximum Penalty: Two years minimum consecutive term in prison
Money Laundering, in violation of Title 18, USC 1956(a)(1)(B)(i)
Maximum Penalty: Twenty years in prison
Bijan Moossazadeh, Case Number 20CR1893-BAS Age: 63 San Diego
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Yousef Shemirani, Case Number 20CR1895-BAS Age: 74 Poway
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Boris Shkoller, Case Number 20CR1913-BAS Age: 83 Del Mar
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Mendel Goldstein, Case Number 20CR2772-BAS Age: 63 Brooklyn, NY
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Stuart Weinstock, Case Number 21CR0042-BAS Age: 64 Escondido
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Rotem Cooper, Case Number 20CR3968-BAS Age: 54 San Diego
Deferred Prosecution Agreement
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
Igor Shtilkind, Case Number 20CR3955-BAS
Deferred Prosecution Agreement
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
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Preceding provided by the U.S. Attorney’s office in San Diego.
They all need to be accountable for what they’ve. Done they need to pay back all the money n spend time in prison to think about what they did.