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Kars4Kids Used Staten Island Synagogue to Hide Cash, Report Says

By Nicholas Rizzi | October 17, 2016 3:11pm
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ELTINGVILLE — A group associated with the charity Kars4Kids told the government it runs a Staten Island synagogue in an effort to hide some of its cash from public disclosure, the New York Post reported.

Congregation Oorah, started by Oorah Inc. that runs Kars4Kids, told the IRS it's operating a synagogue at 374 Ridgewood Ave. in Staten Island to run services and hire a rabbi, despite it actually being used by the Young Israel of Eltingville for those purposes, according to court papers.

In the filings, Young Israel claims Oorah started Congregation Oorah so it could falsely tell the IRS it was running the synagogue so as to avoid public disclosure that's required of nonprofits and to get tax-exempt status as a religious organization.

Young Israel said in the documents that Oorah might be claiming it's running a synagogue as a shield "to put their more questionable financial dealings through an entity that would not be subject to the same public scrutiny."

Lawyers for Oorah and Young Israel did not respond to requests for comment Monday.

Oorah — which takes in millions a year through donations to Kars4Kids — has been in a legal battle since 2007 over the synagogue with Young Israel, The Jewish Week reported.

Struggling to pay its bills, Young Israel got into an agreement to put Oorah on the deed of its building in exchange for $250,000 and letting Oorah operate a school on the site. Young Israel would still use it for daily services, the Jewish Week reported.

However, Young Israel later said that Oorah tried to push it out of the main sanctuary in 2013 and took the claim to a religious court, which ruled Young Israel owed Oorah $1 million, according to Jewish Week.

Young Israel took the case to Staten Island Supreme Court afterwards and filed court papers last week arguing Oorah's using the building to avoid the public disclosure rules of nonprofits, the Post reported.