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Showing posts with label L A Times. Show all posts
Showing posts with label L A Times. Show all posts

Sunday, October 16, 2011

IRS is Investigating Kabbalah Centre Of Tax probe

Philip Berg, flanked by sons Michael, left, and Yehuda, blows the Shofar at Rosh Hashana, or Jewish New Year, rites for kabbalah students

Philip and Karen Berg are seen here at a 2009 event in Israel sponsored by their Los Angeles-based Kabbalah Centre, which the IRS is investigating

Philip and Karen Berg, founders of the L.A.-based Kabbalah Centre, set out to make secret Jewish mysticism available to the public. But former followers are now critics, and the IRS is investigating.

Philip Berg’s new wife was young, beautiful and worldly, everything that he, a middle-aged orthodox rabbi, wasn’t. Karen Berg could be pushy too. She brought a television into their home over his objections. She tossed out his traditional black fur hat, and pressured him to teach ancient Jewish mysticism -- known as kabbalah -- to the public.

“Men and women together?” Philip said.

“Yeah, sure, men and women,” she replied.

Philip understood how radical her proposition was. For centuries, elite rabbinical scholars -- all of them men -- had guarded like rare gems the spiritual secrets believed to be encoded in the Torah. Karen was an outsider to this culture. Entrepreneurial and unimpressed by religious authority, she saw no reason why such valuable teachings shouldn’t be offered on the open market.

“Let’s give it to the people,” she insisted.

Philip was torn between tradition and his soul mate. He chose Karen.

That conversation four decades ago, recounted by Karen in videos and in a book she wrote, set the course for their lives. Once so poor that they shopped at thrift stores, slept in cramped rooms above a Queens synagogue and studied scripture on a pingpong table, the Bergs gradually turned their spiritual vision into the Kabbalah Centre, a worldwide organization with headquarters in Los Angeles, branches in dozens of countries and assets estimated to be in the hundreds of millions of dollars.

The center’s teachings about God, happiness and the meaning of life drew a passionate following that included big names in film, fashion and music. Devotees treated the couple as if they were gods. Some considered it an honor to eat Philip’s table scraps. They addressed Karen in the third person and showered the couple with gifts, including couture handbags and spa vacations. The Bergs stayed in luxury hotels, traveled by private jet and took gambling trips to Las Vegas, according to former members of their inner circle.

The Kabbalah Centre prospered, but eventually its success proved divisive, and harmony gave way to public discord. The Bergs’ lifestyle was questioned, their finances scrutinized. Friends became enemies, supporters fell silent. In recent months, IRS agents investigating the center’s finances pored over records and questioned the Bergs’ followers.

Philip had always sensed that Karen’s idea of kabbalah for the people would stir vehement opposition. “We’re probably going to get killed,” he warned her during that conversation 40 years ago. “We’re probably going to get stoned.”

A devout religious upbringing

Philip Berg was born Shraga Feivel Gruberger in Brooklyn, two months before the stock market crash of 1929. His family was devoutly religious. Their neighborhood, Williamsburg, filled with Hasidic Jews fleeing Europe. A thorough Torah education was a given and Philip began his at age 3. He attended ultra-Orthodox yeshivas and was ordained a rabbi in 1951.

As a young man, he turned away from full-time religious studies. He later wrote that he had become “profoundly disillusioned by my religion as it had been taught to me,” but he also needed to support his wife, Rivkah, and their young family. The couple would eventually have eight children. He Americanized his name and became a salesman for New York Life Insurance Co., a position family friend Billy Phillips said afforded him a chauffeured Cadillac and good cigars. In the early ‘60s, Philip went to Israel, where he was introduced to kabbalah by his wife’s uncle, a renowned scholar named Yehuda Brandwein. Kabbalah entranced Philip. Unlike yeshiva, often dominated by debates about the minutiae of Jewish law, kabbalah focused on life’s existential questions: Why am I here? How can I be happy?

Brandwein, who ran a Jerusalem yeshiva, was Philip’s spiritual guide to the mystical world that would become his lifelong devotion.

The Hebrew word for “received,” kabbalah holds that the first five books of the Bible contain hidden lessons. Kabbalists believe God revealed this wisdom to Moses along with the Ten Commandments. That knowledge, they believe, was passed down orally until the 13th century, when it was published in a series of books known as the Zohar.

Some Jewish scholars regarded with suspicion kabbalah’s preoccupation with astrology, reincarnation and a world of unseen forces. Others, including Philip, saw it as Judaism at its purest.

Returning to Brooklyn, he opened his insurance office at night to orthodox Jews for the study of the Zohar. In 1965, with the help of another student and an elderly, impoverished scholar, Levi Krakovsky, Philip set up the National Institute for Research in Kabbalah, a forerunner of the Kabbalah Centre.

In a tiny apartment so crammed with books that he could have only one visitor at a time, Krakovsky translated the Zohar and other texts into English. He yearned to spread the teachings, but like other scholars before him, he was confounded by an inherent contradiction in kabbalah: It taught that the Messiah would appear only when the world embraced its wisdom. Yet only Jewish men, 40 or older and with an encyclopedic knowledge of the Torah and Jewish customs, were permitted to study it.

Krakovksy lugged his handwritten manuscripts around Brooklyn in a suitcase, searching for an audience. He died in 1966, never having found a publisher. Years later, his heirs claimed that Philip had stolen some of his manuscripts. They sued, accusing Philip of publishing the translations under his own name to make money and “to falsely enhance [his] stature ... as a great Kabbalah teacher.”

Philip denied the allegations.

The case went to trial in Manhattan federal court, but just as the jury was to begin deliberations, the center reached a confidential settlement with Krakovsky’s family.

Whether or not he stole Krakovsky’s work, Philip inherited his desire to expand kabbalah’s reach. That ambition might have remained unrealized had he not hired a gum-smacking 16-year-old named Kathy Mulnick as a receptionist.

Oft-told tale of couple’s meeting

The Bergs’ romance is the Kabbalah Centre’s creation story, and the family has told and retold it in books, videos, religious services and media interviews. Verifying it has proved difficult. Many of those involved, including Philip’s first wife, are dead. The Bergs declined to talk to The Times.

Raised by a single mother in postwar Brooklyn, Kathy Mulnick was a self-described wild child who could take care of herself. She attended 13 different schools, and would later tell friends she couldn’t read until she was 9. Later in life, after she changed her name to Karen, she regaled friends with stories of the toughness bred by her chaotic youth.

Her family was Jewish, Karen has said. But they were assimilated and ignorant of even the most sacred parts of the religion. In a 2009 interview with the Jerusalem Post, she recalled a family tradition of enjoying a big meal on Yom Kippur, the day of fasting and atonement. Her job at Philip’s insurance office exposed her to the world of religious Jews who observed the Sabbath and kept kosher.

She has written that as a high school student, she had nothing in common with her boss, a 31-year-old with a wife and children. “In fact, I disliked the man,” she wrote in “God Wears Lipstick,” a 2005 book subtitled “Kabbalah for Women. ”

After six months, she quit.

At 17, she married a man from her neighborhood. They had two daughters, built a contracting business and eventually divorced. After they separated, she decided to call an old friend in Philip’s office. At the end of the conversation, she asked the woman to say hello to Philip for her. It had been eight years since she had seen him.

“Not 10 minutes later, my phone rang,” she wrote.

It was Philip. They chatted and their conversation turned to his devotion to kabbalah. Karen was intrigued because of her interest in New Age philosophy and asked if he would give her private lessons. By her account, Philip, who wouldn’t even shake hands with a woman who wasn’t his wife, nonchalantly replied, “Okay, why not?”

“We made a date for dinner that night to discuss the details,” she wrote later. “I have to tell you at that meeting, it was all over. We knew instantly that we were meant for each other.”

Philip’s marriage to his first wife fell apart, and he and Karen were married in 1971. Their early relationship was a tug of war between her worldliness and his piety. Philip threw out his new wife’s library of New Age books and blocked the door when she tried to bring a television into their home. He gave in when she threatened to leave him, Karen wrote.

Then there was the hat.

“One day I took that big black fur hat off his head and threw it right out the window. I said to him, ‘Let’s understand something. I joined your world so you’ve got to come to mine. I can't live with this kind of strictness,’” she wrote.

Philip gave up the insurance business and the couple moved to Israel shortly after they were married. They lived in a tiny apartment in Jerusalem with their sons, Yehuda born in 1972 and Michael in 1973, and drove a beat-up Fiat, recalled Jeremy Langford, an early disciple who lived with the Bergs in Israel for two years.

Karen began to study kabbalah seriously. They argued over what to do with

Philip’s spiritual knowledge. She suggested teaching kabbalah to anyone who wanted to learn about it, including women and those without yeshiva training. Philip acquiesced, and in so doing elevated Karen to a status well above a rabbi’s wife. In the eyes of followers, Karen became Philip’s peer: He had the education, she had the nerve.

What Karen Berg has done is what no man in history has done,” said Phillips, the family friend. “Never have the words ‘kabbalah’ and ‘Zohar’ been known outside the small circle of kabbalists.”

The Bergs advertised introductory classes; the cost was about “the price of a falafel,” one former member recalled. The New Age seekers, retirees and others drawn to the courses in Tel Aviv were from secular homes and knew little about their Jewish heritage.

“We loved that we found mysticism in our own backyard, in Judaism. The teacher spoke of things that very much resonated with us.... There was no pressure to be observant,” said one longtime member who became disillusioned and left the center after two decades. The former member, who continues to practice kabbalah’s philosophy of helping others, asked not to be named because relatives are still involved.

Philip held himself out as the spiritual successor to Brandwein and used the name of a kabbalah yeshiva founded in Jerusalem in 1922. But Brandwein’s heirs, who were running the yeshiva at the time, publicly disavowed any connection to Berg.

Philip had fewer than two dozen regular students in 1977 when Langford enrolled. Langford said he was captivated by the rabbi’s teachings: “Everything we did felt so important. The future of spirituality was dependent on us.”

The Bergs spoke constantly of expanding and in published materials sometimes exaggerated the size of the organization, he said. “There was a joke that anywhere he had sneezed he would say there was a branch there,” Langford said.

In the classroom, Philip, known as the rav, or rabbi, was beloved for his clear explanations of lofty concepts such as shame and mercy. At home, his conversations with Karen often concerned less spiritual topics.

“She was always talking about money and the need to have it,” Langford said. Karen wanted a big house and her husband agreed, saying it could attract new students, he said.

“He could see in her no evil. He could see in her no wrong,” recalled Langford, who was the first student promoted to teacher. He is now a glass artist in Israel and said he still studies kabbalah.

In the early 1980s, the Bergs returned to the U.S.

“He came to me and said that if he wants to make it big time, it can’t be done in Israel,” Langford said.

A family affair


Flanked by their sons, Yehuda, left, and Michael on the right, Philip and Karen Berg participate at a 2009 kabbalah event
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The Bergs settled in Richmond Hill, a middle-class Queens neighborhood. Karen finally had the big house she wanted, but its stately exterior belied a modest existence. They had moved back from Israel without enough money for a car, according to former student Dorothy Clark. She and another former student recalled that Karen dressed their sons in secondhand clothing.

The house doubled as the American headquarters of what would soon be known as the Kabbalah Centre. The basement served as a dining hall and the living room as a synagogue. Classes were held around a pingpong table, one of the Bergs’ few pieces of furniture, recalled Michel Obadia, a Manhattan hair salon owner who studied at the center.

As in Israel, the students were mostly alienated Jews who liked Philip’s combination of approachability and orthodox background. He would teach that the oft-told stories of Adam, Abraham and other Torah figures contained hidden wisdom about how the universe worked. Over two hours, Obadia recalled, Philip would discuss what the Zohar taught about a particular esoteric topic -- how to find the middle ground between judgment and grace, for example.

Obadia said students would speak up about how the abstract principle applied to their own lives.

“He had the language, the formulas, for you to pierce through and all of a sudden start to understand things,” said Obadia, who left the center more than 20 years ago but can still recite many of Philip’s teachings.

He said that at the close of class, many students would strap on phylacteries -- small boxes that contain Torah passages -- and pray together.

Their congregation was growing, but the Bergs were determined to reach even more people. They turned to publishing. In Israel, they had discovered that students wanted their own kabbalah texts and would pay for them. This was a revelation to Philip, who was used to impoverished yeshiva scholars hunkered over communal books, as he later recalled in testimony in a civil lawsuit.

The books sold in Israel were dense and difficult, and written in Hebrew. Berg turned to Clark’s husband for help in making the teachings more accessible. Kenneth Clark was a Chicago Tribune reporter covering entertainment in New York. The two men got together every Wednesday night at the Bergs’ dining room table.

“His idea was to get this into common language that anybody could understand,” Kenneth Clark recalled in court testimony years later.

Philip would explain a portion of kabbalah to Clark, who had been raised a Southern Baptist and knew no Hebrew. Clark would look for ways to make the ancient teachings relevant. When Philip described kabbalah’s conception of the age-old conflict between good and evil, Clark suggested comparing it to the "Star Wars" movies.

Books he wrote with Clark and other ghostwriters allowed Philip to reach beyond Queens and Israel, and the Bergs soon had branches in cities with large Jewish communities, including Miami, Toronto and Paris.

They also established a religious order called the chevre , “friends” in Hebrew. The chevre , primarily young Israelis, took vows of poverty and lived dormitory-style in a house near the Bergs’ Queens home and later in cities around the world. By day, they knocked on doors in Jewish business districts, carrying Zohars and delivering a pitch about the center to raise funds. At night, they roamed Jewish neighborhoods.

“We would say, ‘We are teaching Jewish spirituality.’ Most people would say, ‘I'm not interested.’ Some would say, ‘What's it about?’” recalled Shaul Youdkevitch, a high-ranking teacher who had a falling-out with Karen in 2008 after three decades as a chevre .

The chevre tried to persuade people to make a donation or buy a Zohar for $360, according to Youdkevitch and other former members of the order. Many of the people they solicited did not read Hebrew, but the chevre assured them that wasn’t a problem: Just passing a hand over the Zohar’s letters can give spiritual insight, and its physical presence provides protection from harm. (The talismanic powers of the Zohar remain a central tenet of Kabbalah Centre teachings.)

In the mid-‘80s, the center began emphasizing donations as a way to ensure members’ well-being, spiritual and otherwise. Consistent with Jewish tradition, followers were urged to give generously beyond the expected tithe of 10% to 20% of their income.

Teachers departed from tradition in telling donors their money should go only to the center: Spreading kabbalah was more vital than the work of homeless shelters and other charities. The center taught that tithing protected donors against financial setbacks, and that additional donations would stave off divine punishment in the form of illness, family strife and other problems.

Karen kept close tabs on fundraising, Youdkevitch and other former members said.

“She was sitting on every chevre in the world: ‘Where are you? How much money are you bringing in?’” he recalled her inquiring. “She would say you have to be outside all day.”

Philip focused on spiritual matters. He prayed six to eight hours a day and continued to write books with Clark. In 1988, Philip published “Power of Aleph Beth.” The first sentence mentioned “Star Wars” director George Lucas and the cover featured a sci-fi design with Hebrew characters floating under a dark planet.

The book used modern worries such as nuclear war and drug abuse to give kabbalah teachings a contemporary feel.

There was also a nod to a world-famous pop star.

“We are living in a material world and I’m a material girl,” began the second chapter. Nearly a decade before Madonna attended her first kabbalah class, she served as what Clark called “a made-to-order metaphor for what kabbalah does not teach.”

Sunday, January 30, 2011

Kosher Consumers Can Sue







Kosher Consumers who were misled by false advertising and bought a non Kosher product can sue the manufacturer, a court ruled.

Consumers who buy a product as a result of misleading advertising can sue the manufacturer even if the product was not defective, the California Supreme Court ruled Thursday.

The 5-2 decision resolved a long battle between consumers and business over the scope of Proposition 64, the 2004 ballot measure intended to end so-called “shakedown” lawsuits against business. The initiative said a person could sue only if he or she suffered an injury and lost money as a result of the false advertising.

The case involved a suit against an Orange County-based company that made locksets labeled “Made in U.S.A. “ In fact, the company closed down an Orange County plant and transferred some of its most labor-intensive work to Mexicali, according to a lawyer who brought the suit. The company eventually dropped the label after a federal investigation.

Justice Kathryn Mickle Werdegar, writing for the majority, said merely buying a product as a result of a false claim was enough to sue under Proposition 64.

“Simply stated: Labels matter,” Werdegar wrote for the court.

“Whether a particular food is kosher or halal may be of enormous consequence to an observant Jew or Muslim,” she added. “Whether wine is from a particular locale may matter to the oenophile who values subtle regional difference. Whether a diamond is conflict free may matter to the fiancée who wishes not to think of supporting bloodshed and human rights violations each time she looks at the ring on her finger.”

In a dissent, Justice Ming W. Chin, said Proposition 64’s backers on their website identified the lawsuit against the lockset maker as the kind of “shakedown” suit the measure would prevent.

He said the ballot measure limited lawsuits to persons who suffered injuries as a result of a false claim, and those who sued the manufacturer “did not allege that these mislabeled locksets were overpriced or defective.”

As a result of today’s ruling, all consumers “now have to allege is that they would not have bought the mislabeled product,” wrote Chin, joined by Justice Carol A. Corrigan. “This cannot be what the electorate intended” in voting for a measure aimed at reducing frivolous lawsuits against California businesses.

A tort reform group predicted that the ruling would clog state courts at a time when funding for them is being cut.

Monday, January 24, 2011

Disabled mother battling for visitation rights gets precious time with her kids

Abbie Dorn, with therapist Heidi McGovern, was severely disabled when her brain was starved of oxygen after giving birth to triplets. She and her parents are in a protracted custody dispute with her ex-husband.

Abbie Dorn is confined to a wheelchair and hasn't held her triplets since the day they were born. Last month her children, who live in L.A., spent time with her in South Carolina.

Abbie Dorn sat in her high-backed wheelchair, a white board resting across her lap, head tilted a little to the left.

Arrayed on the board in front of the silent 34-year-old on this Thursday afternoon in early December were small sheets of paper, each printed with a single word. Happy. Sad. Scared. Anxious. Excited.

"Abbie," prompted speech-language pathologist Sarah Gerace, "how do you feel about your children coming to visit?"

The motionless woman cast her eyes to the word "happy." A moment later, they shifted to "sad." "Did you mean happy, Abbie?" Gerace queried. Abbie blinked in response. "Did you mean sad?" She blinked again. "Did you mean happy and sad?" Another blink, long and definitive

Two months after Abbie turned 30, Esti, Reuvi and Yossi were born at Cedars-Sinai Medical Center. The triplets, now 4 1/2, were strong and healthy, but a series of medical errors eventually left their young mother largely unable to move or communicate except by blinking.

Abbie has held her babies just once: the day they were born. She and her husband, Dan, have since divorced, and they are locked in an angry legal struggle over the children they once dreamed of and prayed for.

Abbie is fighting for visitation through her parents, Susan and Paul Cohen, who have been named her conservators. Dan has argued in court that seeing their disabled mother would cause the children grave harm and that he, as their only "fit" parent, has the ultimate right to make decisions about their care.

By the time of the speech therapy visit, Abbie had not seen her children for more than three years. But now, they were due to arrive in just four days for a secret visit that not even the court was aware of.

And how was she? Happy, Susan said, recounting the speech therapy visit. And sad.

The Dorn case has been in and out of Los Angeles County Superior Court for nearly a year, wending its way slowly toward trial. The children, who live in Los Angeles with their father, have been evaluated by a psychologist, Abbie, who lives in South Carolina with her parents, has been examined by a neurologist. A gag order was put in place to keep all parties silent about the visit, and then was lifted last week.

Throughout the contentious process, the attorneys' arguments have largely stayed the same, though their volume has risen with the passing months.

Vicki J. Greene, who represents Dan, has argued in documents and in court that "the constitutional right to visit with one's children is reserved for fit parents only."

Abbie does not fill that bill, she says, because she "is incapable of communication (blinking is merely reflexive) and more likely than not, would not know or acknowledge her children if they were standing before her."

Paul and Susan Cohen, she told Judge Frederick C. Shaller during a December hearing, "are trying to get grandparent visitation rights in the guise of getting it for their daughter…No matter how sad, no matter how cruel, they don't have the right to do that."

Greene has asked that the trial be split in two, that only if Abbie could actually express her desire to see the triplets during a competency phase would the fight over visitation commence. Both Shaller and Judge Rudolph Diaz, who heard the case's early actions, disagreed.

The children's psychological evaluation has been sealed from public view. But in a six-page neurological report filed in July, Dr. Angela N. Hays said that the children's mother is in a "minimally conscious state" and that it is "unreasonable to hope that she will return to anything approximating" her abilities before her brain was starved for oxygen after childbirth.

Hays, who specializes in "neurological emergencies" at the Medical University of South Carolina, said it is impossible to know whether Abbie can understand speech or interpret what she sees.

"However, it is clear that she can at least perceive images and sounds," Hays concluded. And "I cannot exclude the possibility that she may retain the capacity to recognize family members and derive some enjoyment from social interaction."

To Lisa Helfend Meyer, who represents Abbie, the case is both simple and critically important. Unless Dan can show that visitation would be a detriment to the children, who live with him in Los Angeles, Abbie has a constitutional right to see them, regardless of whether she can talk.

The case is about one mother, she says, and all parents with disabilities. Meyer told Shaller in December that Greene wants to set a standard that "to see your children you have to have a certain IQ, can't be disabled or have a certain sexual preference.

Even prisoners have the right to see their children," Meyer told Shaller. And "it is in the best interests of these children to have a relationship with their mother."

It took nearly a month to negotiate the details of the visit to Myrtle Beach, S.C., where Abbie lives with her parents. Four days, four hours a day, all expenses paid by Susan and Paul Cohen.

Psychologist Jane Ellen Shatz had spent months evaluating the children and their extended family, and in October she released her report. Shortly afterward, Greene called Meyer to talk. Their daylong, confidential mediation session resulted in the one-time visit, but the Cohens felt the conditions were onerous.

Susan could not talk to Esti, Reuvi and Yossi about whether their mother would ever get better. She could not ask the little girl and her brothers to pray for Abbie. No visitors were allowed while the children were there — not even their aunt, uncle and cousins. On the first day, the Cohens were not allowed in the room while the triplets and their mother got acquainted, although Abbie's caretakers were present.

But most of all, Susan said, no one could know — not the neighbors, not the media, not the judges.

On Dec. 6, Dan was scheduled to bring the children to the Cohens' airy house on the Intracoastal Waterway about 12:30 p.m. Abbie was ready, sitting up in a big brown chair in the living room, her makeup carefully applied, her skirt and top a neat black and white.

"I told her I don't know 100% for sure he's coming, that he may not show up," Susan recounted. "That's why, at 1:45, I sat down, put my feet up, took out a book and started to read to Abbie."

Then the doorbell rang.

At first, Susan said, the children were shy. They played with Band-Aids, their favorite toy, and medical gloves that the grownups had blown up into hand-shaped balloons. Esti, as always, talked the most. "We know our Mommy got sick," she told Susan on arrival, "because the doctor made a mistake."

Susan had set out an activity table with crayons and craft supplies, and the children drew pictures and made art projects. But when they brought them over to show their mother, Susan said, "Dan told them, 'She can't see.'"

Dan and attorney Greene declined to comment on why he agreed to the visit or how it went. They also would not discuss the ongoing litigation, including a suit that he has filed against the Cohens in South Carolina.

As part of Abbie's medical malpractice settlement, a $910,275 special needs trust fund had been set up. Dan argues in the new suit that Abbie's parents violated the terms of the trust by using most of that money to fight for visitation, and he wants them removed as conservators.

Meyer argues that the money is appropriately used for Abbie's medical and legal needs and that Dan simply wants to stop Abbie from fighting for visitation. The trust has dwindled fast, and the Cohens have set up a fund to accept donations to help Abbie see her children again.

And what did Abbie think about Esti, Reuvi and Yossi's visit?

A week after the children departed, she was back in the speech therapist's office, white board on lap. This time Gerace laid out just two words. "Sad" was on the right. "Happy" was on the left.

"How did you feel about seeing your children?" Gerace said.

Abbie looked to the left.

Happy.