KeyBank Sues Kiryas Joel Religious Charity in $950K Credit Card Chargeback Scheme
KeyBank has sued a Hudson Valley religious charity and a co-founder for allegedly running a $950,000 credit card chargeback scheme.
KeyBank of Cleveland sued Mordechai Gold and BHMD BY on Chevron Inc., of Kiryas Joel, Orange County, Dec. 16 in White Plains federal court.
“KeyBank seeks to prevent the fraudulent transfer or dissipation of assets, including those assets that they have already tried to put beyond the reach of KeyBank,” the lawsuit states.
Gold responded in a court filing that the allegations are a “complete fabrication.”
The bank “has attempted to dress up its contract claim as being an elaborate fraud involving over 40 conspirators,” he stated, “yet KeyBank has proffered no evidence of fraud.”
Gold, 26, Yoel Shtosel and Joel Fekete set up BHMD BY on Chevron in 2015 to establish a place of worship, Bnai Yisroel, on Chevron Road, according to the incorporation papers, and to “support the spiritual needs of the community with providing free loans and to support the religious, intellectual, moral and social welfare among them.”
Shtosel and Fekete are not named in the complaint.
From April to early September, about $984,000 was deposited in the Keybank settlement account. During the same period, Gold transferred about $950,500 out of the account.
The transactions include $22,308 in cash withdrawals, $41,150 wired to a family trust, $84,000 wired to a member of Gold’s family and $533,996 transferred to Gold and BHMD accounts at NorthEast Community Bank.
Fiserv became suspicious and opened an investigation. BHMD was repeatedly charging the same, even-amount for transactions on high-reward credit cards. When the vendor questioned Gold, he said BHMD had been taking advance orders for Hebrew texts. Fiserv pressed for details, the complaint states, but Gold could not provide them.
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