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After a number of public officials have pleaded guilty or been convicted of charges arising from last summer's statewide corruption bust, Rabbi Eliahu Ben Haim, the former leader of Congregation Ohel Yaacob in Deal, pleaded guilty June 17 to conspiring to launder approximately $1.5 million in funds.

On July 23, 2009, after a two-year investigation by federal authorities, 46 people, including five rabbis from the Syrian communities of Deal and Brooklyn, three assemblymen, and other politicians and businessmen were arrested on various corruption charges.

Ben Haim is the first of five rabbis charged in last summer's arrests to plead guilty.

In a Trenton federal court, Ben Haim admitted that beginning in October 2006, he met with the government's cooperating witness, Solomon Dwek, a philanthropist and high-profile member of the Syrian Jewish community of Deal. For a fee of approximately 10 percent Ben Haim agreed to launder and conceal Dwek's funds through a pre-existing underground network, even after Dwek told him that the funds were illegally procured through bank fraud, trafficking in counterfeit goods, and bankruptcy fraud. In the 35 laundering transactions that Ben Haim admitted to, approximately $1.5 million in checks were converted into $1.35 million in cash with Ben Haim retaining a $150,000 fee.

According to the original federal complaint, Dwek told the rabbis and their associates that he was in bankruptcy and that he wanted to hide assets by laundering money in increments ranging from tens of thousands of dollars to $150,000 or more at a time.

The government alleged that between June 2007 and June 2009, the rabbis and their associates, including Ben Haim, agreed and converted checks drawn from charities and yeshivas to cash through contacts in Israel and elsewhere and pocketing a percentage as a transaction fee.

At last week's hearing, Ben Haim admitted that he directed the checks be payable to several organizations that Ben Haim was involved in, including Congregation Ohel Eliahu, Friends of Yechave Daat, and Congregation Yehuda Yaaleh. He then deposited the checks into the bank accounts of those organizations and then wired the proceeds to bank accounts in Israel, Turkey, China, Switzerland, and Argentina.

In addition to Ben Haim, 18 of those arrested last summer have since pleaded guilty. Former Jersey City Deputy Mayor Leona Beldini and former Assemblyman Daniel Van Pelt were convicted at trial.

Ben Haim faces a maximum of 20 years in prison and a $250,000 fine, though the presiding judge, Judge Joel A. Pisano, will take into "account the severity and characteristics of the offenses, the defendant's criminal history, if any, and other factors," according to a statement from U.S. Attorney Paul Fishman.

As part of his plea, Ben Haim agreed to forfeit approximately $1.5 million, including approximately $630,524.78 that was seized by the FBI from various bank accounts he operated, his residence, and his vehicle during last July's bust. He also agreed to pay $100,000 to the government instead of surrendering his house in Elberon.

Ben Haim, out on a $1.5 million bail, is currently under home confinement with sentencing scheduled for Sept. 30.