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Man sentenced in $7M scam targeting local Orthodox Jewish community

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Man sentenced in M scam targeting local Orthodox Jewish community

A 58-year-old Sherman Oaks man was sentenced to nearly seven and a half years in federal prison Monday for scamming fellow members of a San Fernando Orthodox Jewish Israeli community out more than $7 million through investment company he ran with his brother out of their parents’ home, authorities announced.  

Sassi Mizrahi was found guilty on five counts of wire fraud and, along with the 87 months of prison time, was ordered to pay some $4.47 million in restitution.  

His brother, 51-year-old Encino resident Motty Mizrahi, pleaded guilty in January of this year to six counts of wire fraud and one count of aggravated identity theft.  

From June 2012 to March 2019, the Mizrahi brothers fraudulently raised millions of dollars from at least 40 investors in their community, promising them “guaranteed” returns of 2% and 3% a month and annual rates between 30% and 102%, according to a news release from the United States Department of Justice, Central District of California.  

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The brothers also assured their victims that their money could be withdrawn on an on-demand basis after an initial holding period.  

Portraying himself falsely as a licensed broker, a certified public accountant and an experienced trader, Motty told victims that he and his brother’s business, MBIG Company, used “sophisticated financial option-and-insurance-hedging strategies” to get returns on their clients’ investments.  

However, neither brother ever invested their victims’ money in accounts under MBIG’s name. Motty transferred most of the victims’ funds into personal trading accounts at E*TRADE and TD Ameritrade where he sustained losses of more than $3 million.  

Prosecutors said Sassi also received hundreds of thousands of dollars in investor money and then helped his brother keep the truth from community members that invested with MBIG.  

“For years…Sassi Mizrahi and his brother, co-defendant Motty Mizrahi… operated a Ponzi scheme that targeted victims they knew had reason to trust them: fellow members of the close-knit, Orthodox Jewish Israeli community of the San Fernando Valley,” prosecutors argued in a sentencing memorandum. “Exploiting the goodwill engendered by such affinity, defendants scammed millions of dollars from their victims with false promises of risk-free investments and guaranteed returns.” 

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The Mizrahi brothers also filed fake monthly account statements meant to trick victims into believing MBIG had consistent monthly financial gains and had balances between $6 million and $9 million.  

When confronted by community members they took advantage of, the brothers denied their financial losses and never returned the money they stole.  

“When victims asked for their money back, [Sassi Mizrahi] gaslit them with lies about the safety of their investments, promises of repayment he knew could not be honored, threats of retaliation, and forged documents meant to corroborate his increasingly baroque excuses for why the money was unavailable,” prosecutors argued in a sentencing memorandum. 

The U.S. Securities and Exchange Commission also obtained a judgement of more than $3 million against Motty and MBIG for fraud in Oct. 2020. 

Motty’s sentence hearing is scheduled for Dec. 18.  

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Los Angeles, Ca

2 potential wildfires stopped from spreading in Orange County

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2 potential wildfires stopped from spreading in Orange County

Two wildfires were stopped from spreading in Orange County Friday amid high-wind warnings and several destructive wildfires burning across the Southland.

Both incidents were discovered near Aliso and Wood Canyons Wilderness Park, according to the Laguna Beach Fire Department.

On Friday morning, a jogger noticed a smoldering 20’ x 20’ burn scar while running on a trail behind The Ranch resort in Laguna Beach. 

A resort employee quickly grabbed a hose and extinguished the growing blaze before fire crews arrived at the scene.

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The second incident occurred later in the day as a burn area with hot coals was discovered on a back dirt road near Soka University. The site appeared to have been used as a warming fire the night before. Though the fire was burned out, the hot coals remained active in the base, officials said.

OC Parks staff reported the incident and crews with the Laguna Beach Fire Department, Orange County Fire Authority, Orange County Sheriff’s Department, and other local personnel responded to the scene. The smoldering fire was extinguished without further incident.

“This was a team effort that exemplifies how collaboration and quick action can prevent a potentially dangerous situation from escalating,” said Laguna Beach Fire Chief Niko King. “We are grateful for the proactive efforts of the jogger, OC Parks staff, and The Ranch employees, as well as the professionalism of all responding agencies.”

As high winds are expected to continue through the weekend and into next week, fire officials are urging the public to refrain from burning things outdoors while fire threats remain high.

“As we live in a high fire-risk area, every second counts in preventing wildfires,” King said. “If you see any fire activity, please call 911 immediately,” he said.

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Orange County park rangers will remain on fire watch and continue to monitor open spaces. 

Anyone who spots a potential fire is asked to immediately report the incident to a local law enforcement agency.

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Los Angeles, Ca

HHS declares public health emergency for California wildfires

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HHS declares public health emergency for California wildfires

The U.S. Department of Health and Human Services declared a public health emergency for California on Friday to address the health impacts of the devastating wildfires in Los Angeles County.

The declaration provides greater flexibility for Medicare and Medicaid providers and suppliers, enabling them to address emergency health needs, officials said.

HHS Secretary Xavier Becerra made the announcement, following President Biden’s major disaster declaration.

“We will do all we can to assist California officials with responding to the health impacts of the devastating wildfires going on in Los Angeles County,” Becerra said in a statement. “We are working closely with state and local health authorities, as well as our partners across the federal government, and stand ready to provide public health and medical support.”

People wear masks because of hazardous air quality due to the wildfires as they walk by the beach in Santa Monica, California, on Jan. 8, 2025. (Getty Images)

The Administration for Strategic Preparedness and Response, an agency under the HHS umbrella, is on standby to deploy medical equipment, supplies and responders as requested, officials said.

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ASPR has shared technical resources on wildfire response and mobilized volunteers from the Long Beach Medical Reserve Corps to assist local officials.

“ASPR is carefully monitoring hospitals and shelters in Los Angeles County devastated by the wildfires, and we are prepared to meet health care needs as part of the combined federal, state and local response,” said ASPR Assistant Secretary Dawn O’Connell.

HHS has activated its 24/7 Disaster Distress Helpline at 1-800-985-5990, providing multilingual crisis counseling for wildfire-related emotional distress. The agency also deployed resources from the HHS emPOWER program to assist at-risk individuals and issued temporary HIPAA waivers to support hospitals.

The public health emergency was put in place retroactive to Tuesday, enabling these measures under federal law.

The multiple wildfires raging in Los Angeles County have torched over 35,000 acres, destroyed hundreds of homes and businesses, and resulted in at least ten deaths.

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Los Angeles, Ca

Palisades, Eaton fire victims’ homeowners insurance protected through 2026

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Palisades, Eaton fire victims’ homeowners insurance protected through 2026

On Thursday night, California Insurance Commissioner Ricardo Lara issued a mandatory one-year moratorium, protecting homeowners’ insurance coverage in areas affected by the Palisades and Eaton fires.

The moratorium will prohibit insurance companies from enacting non-renewals and cancellations until Jan. 7, 2026.

In a statement, Lara said this rule applies to all homeowners within the perimeters or adjoining ZIP codes of the two fires in Los Angeles County, regardless of whether they suffered a loss.

“Losing your insurance should be the last thing on someone’s mind after surviving a devastating fire,” said Lara. “This law gives millions of Californians breathing room and hits the pause button on insurance non-renewals while people recover.”

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Officials said residents can go to the Department of Insurance website to see if their ZIP code is included in the moratorium.

In addition, if homeowners believe their insurance company is in violation of this law, they are encouraged to contact the department at 800-927-4357 or via chat or email at insurance.ca.gov.

“As firefighters continue to battle wildfires across the region,” the statement noted, “the department may issue a supplemental bulletin if additional ZIP Codes are determined to be within or adjacent to a fire perimeter subject to this declared state of emergency for Los Angeles and Ventura counties.”

The department also provided the following list of tips for consumers during this time:

  • Keep all receipts during your evacuation. 
  • Policy provisions, including deductibles, vary by company, and residents should check with their insurance company or agent as soon as possible to confirm coverage, limits, and any other limitations and documentation requirements. Most renter’s policies also typically include ALE coverage. 
  • Document the date, time, and names of any insurance company employees you speak to regarding your coverage. 
  • Consumers should make sure any insurance agent or public adjuster offering their services has a valid license by checking online with the Department of Insurance. 
  • Download the Department’s Top 10 Tips for Wildfire Claimants (also available in Spanish, Mandarin, and Vietnamese), which includes information about claiming ALE benefits. 
  • Under existing law, public adjusters cannot solicit business for seven calendar days after a disaster. 
  • Don’t forget copies of insurance policies, important papers, and a photo or video inventory of your possessions. An inventory can be completed quickly and easily on your smart phone and safely stored in the Cloud.
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