B'nai B'rith
Great Lakes Region
And
Adat Shalom Men's auk
Invite you to a...

1

Gala

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Thursday Dec. 31 at 8:00 p.m.

k.caloVIA,

Tax Cheat

N.i .V1.C113C)evie

Come Party With Us!!!

$70.00 Per Person Includes....

CJF battling payroll firm it says swindled "millions."

*Elaborate Hors D'oeuvres*

*Cocktail hr. Entertainment features Marsha Rofel*

*Elegant Sit-Down Dinner*
*Lavish Sweet Table*
*Open Bar & Champagne Toast*
*Special Party Favors & prizes!*
*Dancing to the music of Bill Meyer Orchestra*

Jerry Olson, Event Chairman
B'nai B'rith Region
(248) 855-8580

Harvey Olsor, Event Chairman
Adat Shalom'iAen's Club
(248) 851-5100

Name

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*-Nt i

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47'SP X SW

Address

Zip

City

No. Persons

Phone

Please seat us with:

Enclosed is our check for $

R.S.V.P. by Dec. 15

Return with check to: B'nai B'rith
31600 W. 13 Mile Rd. Suite 120
Farmington Hills, MI 48334-2165

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"Healthy Kids Are Happy Kids"

12/4
1998

20

Detroit Jewish News

Payroll Express in federal court in
Connecticut.
A complete list of claimants is not
yet
available.
New York
Yoskowitz said the FBI and the
he Council of Jewish
Justice Department were involved in a
Federations is waging a legal
criminal case against
battle over mil-
the payroll company.
lions of dollars it
The federal action
says the company that was
could hold up the
handling its payroll swin-
civil proceedings,
dled from it over a period
explained Paul
of nearly two years.
Berger, a tax lawyer
The now-bankrupt com-
in Washington who
pany, Payroll Express of
co-chairs an over-
Brookfield, Conn., apparent-
sight committee
ly stole "up to several million
appointed by CJF in
dollars in payroll taxes ear-
the wake of the cri-
marked for payment" to the
sis.
Internal Revenue Service,
The government
according to a statement
will
usually "suspend
issued this week by CJF, the
any activity on civil
umbrella organization for
claims pending resolu-
some 200 local federations in Conrad Giles: Liability will
tion
of criminal inves-
North America.
not stop momentum.
tigations," Berger said.
CJF Executive Vice
'Among other things, it is highly likely
President Jay Yoskowitz said that,
that the government will seek to get the
along with perhaps over a dozen other
assets of any individuals relating to the
companies, CJF had been "victimized"
company into the bankrupt estate."
by Payroll Express.
CJF's liability for unpaid taxes and
"They purposefully went out to
penalties "depends on how far and
steal money," Yoskowitz said. How
deep this goes," Yoskowitz explained.
much of that money CJF will be liable
c,
Assets remaining in the estate of
for, if any, remains unclear at this time.
Payroll Express might cover all or part
CJF used Payroll Express beginning
of the government's tax claims.
in 1991 to prepare the payroll for
Alternatively,
an arrangement could be
about 150 people from its own staff
worked
out
between
CJF and the fed-
and those of four other Jewish agencies
eral. government.
that had contracted with CJF for
It's premature to talk about at the
accounting and bookkeeping services:
end of the day what's going to hap-
Business Network Israel, the Jewish
pen," said Yoskowirz. "Right now, the
Council for Public Affairs (JCPA), the
truth is, we're at the very preliminary
Jewish Education Service of North
stages in this."
America (JESNA) and the National
•
According to its statement, CJF
Foundation for Jewish Culture.
immediately
severed
ties
in
August
The executives of CJF and the other
with Payroll Express upon discovering
agencies involved declined to speculate
evidence of the apparent theft and
the total amount of stolen funds or
launched an internal investigation to
CJF's ultimate liability.
determine the extent of its losses. CJF
CJF executives say they discovered
then informed its own staff, federation
the financial irregularities in August
leadership and the other involved
after Payroll Express declared bank-
Jewish
organizations of the situation,
ruptcy.
assuring
all employees that no personal
Last month, lawyers for CJF filed a
tax liability would result for them.
claim, along with other organizations
Nevertheless, several staffers, fearing
that may have fallen prey to the failed
greater IRS scrutiny, have hired per-
company's alleged scheme, against
sonal accountants, according to sources
within the organization.
is
a
writer
for
the
Jewish
Julia Goldman
Meanwhile, CJF has set up a corn-
Telegraphic Ageng

JULIA GOLDMAN

Special to The Jewish News

T