- Associated Press - Wednesday, May 20, 2015

NEWARK, N.J. (AP) - A northern New Jersey man who pleaded guilty to operating a bogus charity as an unchartered bank is heading to prison.

Authorities say 34-year-old Moshe Schwartz was sentenced to more than two years in prison. A federal judge has also ordered him to pay nearly $75,000 in restitution and a $60,000 fine.

The Union City man pleaded guilty last year to operating an unchartered bank and aiding and assisting in the filing of a false 2007 tax return.

Federal prosecutors say Schwartz operated Gemach Shefa Chaim, purportedly to provide interest-free loans to needy members of the Sanz community. But Schwartz operated GSC as a bank, with millions in deposits. Prosecutors say he had more than 350 client accounts by July 2009.

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