Retirees Lose Millions In Massive
Fraud

Police close down giant distributor

SEC Investigates Allou Pharmaceutical

A Pharmaceutical Firm Files For
Bankruptcy

From New Jersey, To Rural Iowa,
The Fraudsters Were Everywhere

The Family
Patriarch

Aaron Jacobowitz, manager of various companies controlled by the
Jacobowitz family, pleaded guilty to money laundering and fraud.
He faces up to 10 years' imprisonment and a maximum fine of up to
twice the amount of the loss from the fraud.

He claims he is penniless.

The Jacobowitz's Children

Herman Jacobowitz,45, Allou's chief executive officer,
and Jacob Jacobowitz, 44 pleaded guilty to conspiracy to
commit bank fraud, securities fraud, and mail fraud, and to
a substantive count of filing a false annual report with the
Securities and Exchange Commission.

The could get 15 years.

The Scheme

The government's investigation revealed that
Allou's top officers and controlling
shareholders participated in a long-running
corporate fraud scheme that looted Allou and
plunged it into bankruptcy in April 2003,
destroying the holdings of thousands of
investors. Prior to its bankruptcy, Allou, which
distributed health and beauty aids and
pharmaceuticals, was a public
company traded on the American Stock
Exchange and was one of the largest companies on
Long Island with approximately 300 employees and
over $500 million in reported annual revenues.

Federal prosecutors said the Jacobowitzs
engaged in a scheme to defraud both Allou's
creditors and shareholders by issuing false and
misleading financial statements to its lenders
and to the investing public.
.

During the course of the long-running scheme,
which began in 1991, Allou had a line of credit
from a syndicate of banks that permitted it to
borrow an amount equal to 60% of the value of
its inventory and 85% of the value of its
accounts receivable. Allou's top officers
fabricated documentation for hundreds of
millions of dollars in non-existent inventory
and sales in order to increase the funds Allou
could borrow under its line of credit.
Specifically, Allou funds were sent to entities
controlled by Aaron Jacobowitz for phantom
purchases of inventory, and then a portion of
these funds were sent back to Allou in payment
of bogus invoices reflecting non-existent sales.
Thus, the defendants engaged in a circular
movement of funds to inflate inventory and
accounts receivable in order to fraudulently
increase Allou's borrowing power. As part of
this scheme, the defendants siphoned millions of
dollars from Allou for their personal enrichment
by laundering more funds through the
Jacobowitz-affiliated companies than was
returned by these companies to Allou. 6

In April 2003, as a result of the unraveling
of the defendants' fraudulent scheme, Allou was
forced into bankruptcy and trading in its stock
was halted. As a result of Allou's bankruptcy,
the shares of Allou common stock held by the
investing public are now virtually worthless. It
is estimated that Allou's lenders lost
approximately $130 million as a result of the
scheme.

They Burn Down The Company Warehouse For
Insurance Money

On Sept. 25, 2002, between 11 p.m. and
midnight, a three-alarm fire broke out at a
warehouse located at 80 Evergreen Ave.,
Brooklyn. Approximately 245 firefighters
responded to the blaze, with two suffering
injuries. The Evergreen warehouse stored health
and beauty aid products, fragrances, and
cosmetics for Allou.

The Jacobowitz's Bribe Fire Chief

The fire marshal declared it arson and the
insurance company wouldn't pay. Herman Jacobwitz
paid an undercover marshal $50,000 to change the
report.  1

What About Internet Sales?

The Zionist forte is that of a merchant, so I would assume that
vast amounts of Stage three drugs such as diladins, valium,
oxycontin were shipped to questionable third parties. A $5 bottle
could be sold for $150 on a $2,000 website run out of Bangladesh.

What Are The Total Losses?

Stock Value
......................$55   Million

Off Book Liabilities ...........$10   Million

On Book Liabilities............$135 Million

They took huge bank loans, pocketed employee benefits, stiffed
all their creditors

Article

This Is A Long Term Plot

Jacobowitz started the con in 1991. His big scam was a revolving line
of credit, based on receivables. So obviously the banks were tied into
him. At the end they fleeced everyone, including the $400 a week
shipping clerks, the banks, their VISA accounts, and so on.

You have to assume the three Jacobowitz's have accumulated $500
million over a ten year period. The old man will get sick, and get an
early release. The two sons will serve 18 months in a country club
prison like Danamora. As far as the money, it's in an Israeli bank, and
will never be seen again.

Will The Three Jacobowitzes Ever See
Prison?

Yes - I
bet they get 25 years, and return the $500 million

No - The
sentences will be a joke

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