Solomon Dwek, the New Jersey rabbinic student-turned-confessed real estate fraudster, has been singing like a proverbial canary as a federal witness in New Jersey public-corruption trials. His word was judged credible by U.S. Bankruptcy Court Judge Kathryn C. Ferguson Tuesday, in a case that pitted Dwek against his uncle and past fraud victims, Joseph Dwek and his wife, of Brooklyn. (Read the judge's ruling here.)
Solomon had named his Uncle Joseph as guarantor of a $1.5 million mortgage loan to a predecessor of Vineland-based Sun National Bank back in 2001. When the loan went bad, Sun tried to collect, but Joseph Dwek denied he had truly lent his name.
Ferguson disagreed, noting the elder Dwek had let his nephew sign for him in other deals. She ordered Uncle Joseph to pay the bank $1.85 million.
"A victory for truth," said Joseph H. Blum, Sun's lawyer. "As long as [Joseph Dwek and his wife] were profitable, all was good, but when the arrangement turned not profitable, they tried to argue it wasn't their loan."
Joseph Dwek's lawyer, James Kim, said he was studying the ruling. Timothy P. Neumann, representing Solomon Dwek, said his client was pleased, as he awaits sentencing for his confessed misdeeds and, in the meantime, helps prosecutors try to put his former political partners away. (From my column in today's print Inquirer)