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The Family Patriarch
Aaron Jacobowitz, manager of
various companies controlled by the
Jacobowitz family, pleaded guilty to money laundering and fraud. He
faces up to 10 years' imprisonment and a maximum fine of up to twice
the amount of the loss from the fraud.
He claims he is penniless.
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The Jacobowitz's Children
Herman Jacobowitz,45, Allou's chief executive officer, and
Jacob Jacobowitz, 44 pleaded guilty to conspiracy to commit bank
fraud, securities fraud, and mail fraud, and to a substantive
count of filing a false annual report with the Securities and
Exchange Commission.
The could get 15 years.
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The Scheme
The government's investigation revealed that Allou's
top officers and controlling shareholders participated
in a long-running corporate fraud scheme that looted
Allou and plunged it into bankruptcy in April 2003,
destroying the holdings of thousands of investors. Prior
to its bankruptcy, Allou, which distributed health and
beauty aids and pharmaceuticals, was a
public company traded on the American Stock Exchange
and was one of the largest companies on Long Island with
approximately 300 employees and over $500 million in
reported annual revenues.
Federal prosecutors said the Jacobowitzs engaged in a
scheme to defraud both Allou's creditors and
shareholders by issuing false and misleading financial
statements to its lenders and to the investing public. .
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During the course of the long-running scheme, which
began in 1991, Allou had a line of credit from a
syndicate of banks that permitted it to borrow an amount
equal to 60% of the value of its inventory and 85% of
the value of its accounts receivable. Allou's top
officers fabricated documentation for hundreds of
millions of dollars in non-existent inventory and sales
in order to increase the funds Allou could borrow under
its line of credit. Specifically, Allou funds were sent
to entities controlled by Aaron Jacobowitz for phantom
purchases of inventory, and then a portion of these
funds were sent back to Allou in payment of bogus
invoices reflecting non-existent sales. Thus, the
defendants engaged in a circular movement of funds to
inflate inventory and accounts receivable in order to
fraudulently increase Allou's borrowing power. As part
of this scheme, the defendants siphoned millions of
dollars from Allou for their personal enrichment by
laundering more funds through the Jacobowitz-affiliated
companies than was returned by these companies to Allou.
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In April 2003, as a result of the unraveling of the
defendants' fraudulent scheme, Allou was forced into
bankruptcy and trading in its stock was halted. As a
result of Allou's bankruptcy, the shares of Allou common
stock held by the investing public are now virtually
worthless. It is estimated that Allou's lenders lost
approximately $130 million as a result of the scheme.
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They Burn Down The Company Warehouse For Insurance
Money
On Sept. 25, 2002, between 11 p.m. and midnight, a
three-alarm fire broke out at a warehouse located at 80
Evergreen Ave., Brooklyn. Approximately 245 firefighters
responded to the blaze, with two suffering injuries. The
Evergreen warehouse stored health and beauty aid
products, fragrances, and cosmetics for Allou.
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The Jacobowitz's Bribe Fire Chief
The fire marshal declared it arson and the
insurance company wouldn't pay. Herman Jacobwitz
paid an undercover marshal $50,000 to change the
report.
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What About Internet Sales?
The Zionist forte is that of a merchant, so I would assume that
vast amounts of Stage three drugs such as diladins, valium,
oxycontin were shipped to questionable third parties. A $5 bottle
could be sold for $150 on a $2,000 website run out of Bangladesh.
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What Are The Total Losses?
They took huge bank loans, pocketed employee benefits, stiffed all
their creditors
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