New Square co-founder dies in prison hospital
Chaim Berger, the longtime New Square leader sentenced to six years in federal prison for masterminding the theft of millions of dollars in government subsidies, died yesterday morning in a North Carolina prison hospital, friends said.
Berger, 79, had cancer, said Rabbi Mayer Schiller, a New Square community spokesman and Berger's friend of 40 years.
Berger was buried in New Square last night, said Deputy Mayor Israel Spitzer.
"All of New Square is in a very, very deep, deep pain and everybody feels as they have lost one of their own, and it's just very, very hard to cope with this terrible, terrible news," Spitzer said. "We just have faith in God and our belief that whatever God does is accepted with no question."
Berger was serving his sentence at the Federal Medical Center in Butner, N.C., according to information from the Federal Bureau of Prisons.
Berger was one of five men accused of embezzling $11.6 million from federal antipoverty programs. Most of the money was siphoned from government subsidies for education, housing and small business. The five men also concealed their incomes from the Internal Revenue Service, filed phony applications for aid and created nonexistent schools and students.
Berger fled prosecution in 1997, but was arrested in Israel in 1998 and returned to the United States in 2001 to stand trial.
Berger, who pleaded guilty Jan. 23, 2002, to one count each of conspiracy and mail fraud, admitted in U.S. District Court that he and several other New Square residents defrauded state and federal agencies to benefit themselves and others in the village. He was sentenced in June 2002, and his projected release date was November 2006.
The investigation led New Square officials to accuse federal prosecutors of targeting them because their residents were Hasidic Jews. Prosecutors denied the allegation.
A federal probe into possible misconduct was launched after four of the men connected with the wrongdoing received commuted sentences from President Clinton on his last day in office in January 2001.
The presidential action came a few months after first lady Hillary Rodham Clinton met with Grand Rabbi David Twersky of New Square's Hasidic Jewish community.
Hillary Clinton, who was running for U.S. Senate, received 1,400 votes in New Square, compared with 12 for Rick Lazio, her Republican opponent.
After the election, Twersky came to the White House and met with the Clintons.
After the White House meeting became public in February 2001, Hillary Clinton claimed that was the first time she became aware of the clemency issue. The federal probe found no wrongdoing.
Many in the community believed Berger's prosecution was unjust.
A Holocaust survivor and a founder of New Square, Berger will be remembered as someone who was dedicated to his fellow man, "regardless of their race, religion, creed or color," said county Legislator Ilan Schoenberger, D-Wesley Hills.
Schoenberger, who knew the family, declined to comment on Berger's legal troubles, saying instead that he should be remembered for his many good deeds.
"Chaim was a very fine, decent man who cared a great deal for people. He was always concerned about helping people, both individually and the community as a whole," Schoenberger said.
Schiller denounced Berger's continued incarceration during his illness.
"The government's refusal to allow Chaim Berger to return to his family during his terminal illness was unconscionable," Schiller said. "We weren't dealing with anybody who was a threat to any community or individual, and common decency dictated that he be allowed to be reunited with his family in his final days."
Berger, who was born in Hungary, leaves a widow and six children, Schiller said.
"I would say that I only hope that my own life should be equal to the example of absolute selflessness that he embodied," Schiller said.
Spitzer said Berger's "whole life" was dedicated to serving the public interest.
"He will be remembered by all the people. He'll be especially remembered by the vast amount of people worldwide who were helped by him and were able to continue their daily lives through his encouragement and help," Spitzer said. "People will always miss him. People will miss him as a special, special, kind, loving, giving person."
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