[Congressional Record Volume 140, Number 21 (Wednesday, March 2, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]
[Congressional Record: March 2, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
ON THE SHOOTING OF FOUR STUDENTS IN NEW YORK CITY
Mr. MOYNIHAN. Mr. President, I rise to draw the attention of the
Senate to a terrible crime committed yesterday in New York City. At
10:54 a.m. yesterday, on an on-ramp to the Brooklyn Bridge, a lone
gunman driving a blue Chevrolet opened fire on a van carrying 15 to 16
Hasidic students. The students were returning to Brooklyn after
visiting the spiritual leader of the Lubavitcher sect, Menachem Mendel
Schneerson, who was recovering from minor surgery at Manhattan Eye,
Ear, and Throat Hospital.
The gunman pursued the van onto the bridge, reportedly firing at
least 11 shots from one or more semiautomatic weapons.
Four young men were injured; two critically. A 15-year-old, Aaron
Halberstam, the personal student of the Lubavitcher Rebbe, has been
declared ``clinically brain dead'' by doctors at St. Vincent's Hospital
in Manhattan, where all four victims have been receiving care.
A second victim, Nachum Sossonkin, 18, was also struck in the head by
gunfire, and is given little hope of recovery. The third victim, Levi
Wilhem, 18, is in stable condition after undergoing surgery to remove a
bullet from his abdomen. The fourth victim, Yaakov Shapiro, also 18,
was treated for minor wounds to his hands and released.
According to New York Police Commissioner William Bratton, who spoke
at a press conference at 3:45 p.m. this afternoon, a suspect
apprehension is, of course, a tribute to the abilities of the New York
City Police Department, many of whom worked through the night on the
investigation that led to the suspect's arrest.
The suspect, Assad Baz, 28, is a Lebanese National who came to the
United States in 1984. His current immigration status is being
investigated. He has been charged with 15 counts of attempted murder, 3
counts of assault in the first degree, 1 count of assault in the second
degree, and numerous weapons charges.
Police have recovered a Glock 9mm semiautomatic handgun, a Luger
semiautomatic submachine pistol, a .380 caliber semiautomatic handgun,
and a Street Sweeper, which is a semiautomatic shotgun capable of
firing 12 shotgun shells in 3 seconds.
It is not yet known with absolute certainty whether the gunman
targeted his victims because they were Jewish. It seems unlikely that
they were chosen at random.
Mr. President, this is beyond our worst nightmares. We have come to a
point where people are killed not for what they say or do, which is
awful enough, but merely for who they are or what they believe. Just
2\1/2\ years ago, Yankel Rosenbaum was stabbed to death in Crown
Heights because he was Jewish. I said at the time that it was a
lynching.
Earlier today, New York Mayor Giuliani called me to discuss the
latest developments in the case. An individual committed this crime.
One person has been charged thus far, no more than that. What we must
condemn is the crime; in no way do we condemn the nationality or
religion of the person or persons responsible.
Mayor Giuliani is surely to be commended for his handling of this,
his first such incident since taking office in January.
Mr. President, our prayers are with the young men who were shot and
with their families. I ask unanimous consent that an article from
today's New York Post about young Aaron Halberstam be printed in the
Record.
There being no objection, the article was ordered to be printed in
the Record, as follows:
[From the New York Post, March 2, 1994]
Victim Was Rebbe's Chosen One
When Aaron Halberstam was 3, the man known by many in Crown
Heights as the messiah hoisted him upon his knee.
``Aleph, bet . . .,'' the holy man began.
It was a simple lesson the Hebrew alphabet--one every
yeshiva boy learns as soon as he can walk. But to Ari
Halberstam, it was something more.
At the age of 3, he alone was chosen to be the personal
student of Rebbe Menachem Schneerson. ``He's the only boy the
rebbe sat on his leg,'' a friend told me with admiration.
In Crown Heights, where Lubavitcher boys study from sunup
to long past sundown, Ari Halberstam was known to all as
someone special.
Last night, the gravely injured boy would need every prayer
the community could muster as he fought for his life.
Ari grew up in a family that orbited the inner rung of the
rebbe's circle, a boy fiercely devoted to the holy man who
gave him language. And so it was fitting yesterday that Ari
rose at 5 a.m., to accompany his mentor to the hospital. That
he should be sacrificed as a result of the small act of
kindness weighed heavy on the hearts of the boys studying
late into the night at yeshiva Ohelei Torah.
``He felt such love for the rebbe,'' a classmate said. ``He
felt he must be there with him.''
Last night, long after dark, a time when ordinary
youngsters have settled down in front of the TV, yeshiva
Ohelei Torah was alive with the serious words of study and
the rhythmic melody of prayer. Like most young men his age.
Ari spent most of his waking hours in this run-down school of
chipped paint and ancient wooden desks on Troy Avenue.
There are no fancy computers here, no jazzy texts. Yet the
constant flow of eager-faced boys, draped in prayer shawls,
talking excitedly, ignites a life into these grim
surroundings you don't often see in the most modern of
institutions.
As the school hummed with purpose, it was as if the very
building awaited Ari's return.
Atop a wooden desk, Ari's textbook sat, open to the page of
Talmudic study where he had left off just a day earlier. It
is jammed with looseleaf sheats, all covered in the neat,
even letters that Ari learned so carefully from the rebbe.
``Because he stole from a high priest, he has to give it
back,'' reads one entry on Talmudic law.
There also are things that the rebbe could not have taught
him--the doodles and daydreams of a boy of 16. Ari may be
special, but he is a boy.
There is a hand-drawn picture of a youth trying to sneak
into class. ``You're late,'' someone yells. There also is a
caricature of a bearded, bespectacled man--Ari's teacher? On
one entire page, Ari has practiced his signature, the letters
getting taller and dreamier with each try.
Another page is halting. ``If he is not breathing,'' Ari
wrote, ``you take him out because even if there are broken
bones it doesn't matter because he will die.''
It turns out to be a lesson in first aid. One of the last
lessons he has written.
The boys of Ari's class passed around the book last night,
as if it offered some connection to the missing boy. They
were careful not to disturb the pages, in case the owner
should need them.
The students talked of Ari, with respect and with sadness.
His father, they told me, was the driver for the rebbe's late
wife, a position of great prominence in this community. And
when the woman died, it was Ari who was bequeathed her prayer
book, a holy artifact in these parts.
But Ari also was an athlete, a scholar and a regular guy.
``He didn't boast,'' said Moishe Levin, 15. ``He was not a
big showoff.''
Moishe was at school last night, instead of the hospital,
for one simple reason: He did not wake up early enough to
accompany the rebbe to Manhattan. Like virtually every other
Jew in Crown Heights, he was convinced the shooting of his
friends and classmates was the work of those out to kill Jews
in retaliation for events in Israel.
And it could happen again.
``It is very scary,'' a boy named Yitzhak said. ``It could
happen anywhere.''
So the wave of international terror has been felt in this
rundown building on Troy Avenue, where a boy's book sits,
open, to the words he learned from a holy man. Yet here,
there is no talk or revenge. Just of a boy. A special boy.
I ask Moishe if he wants to fight back. He said no.
``All you can do is pray,'' he said. ``Violence is not the
way to go.''
Mr. WARNER. Mr. President, I draw my colleagues attention to an
extremely disturbing article which appeared recently on the front page
of the Washington Post. The article, entitled ``Marines Toys for Tots
Spent Millions on Itself; Donations Used to Run Charity, Not Buy
Gifts,'' reported that the highly respected Toys for Tots Program had
collected nearly $10 million in the past 2 years, none of which was
used to purchase toys for underprivileged children.
Mr. President, I find that headline somewhat misleading. The story
failed to make clear that underprivileged children were not the only
victims of this scenario--the U.S. Marine Corps Reserve, long committed
to the Toys for Tots Program, also has been damaged. I would like to
take this opportunity to set the record straight.
The Marine program is not at fault--the charitable foundation
augmenting the program went astray.
The article describes a problem with national charities which I have
been trying to correct legislatively, without success, for 2 years. I
raise this case as a signal to all of that intent to relentlessly press
on until this body joins me in addressing the issue. Unfortunately,
this case is another sequel to the tragic problems that hurt the United
Way.
Marine Reservists lend their name, commitment and untold volunteer
hours to this project, collecting toys across the country to distribute
to needy children who might otherwise find the holidays a dismal
prospect. Like all endeavors in which the corps participates, the Toys
for Tots drive gained great success, transformed from a small, local
drive into a respected nationwide endeavor. Ironically, success spelled
the program's downfall.
The program's rapid growth took it far beyond the management scope of
Marine Corps Reserve volunteers. In a single season alone, 7.5 million
toys were distributed to 3.5 million needy children. To ensure
effective management of this burgeoning success, the Toys for Tots
Foundation, a civilian enterprise separate and distinct from Marine
Reserve forces or the Marine Corps itself, was created to help hard-
working Marines collect large sums of money to purchase needed toys.
The corps continued to associate its name with the program it had
created, believing that the foundation would provide relief from the
complex management problems associated with charitable fundraising on
such a large level. Marine Reservists would then be freed to do what
they do best: collecting and distributing toys for deserving youngsters
during the holidays.
Unfortunately, that happy ending does not fit this story.
By now, my colleagues will be aware of legislation I have introduced
to require heightened disclosure from tax-exempt and charitable
organizations. When I initially introduced the measure some year and a
half ago, I was responding to a situation I hoped to be fairly
isolated: the much ballyhooed high-flying lifestyle of the then-head of
the United Way, William Aramony. Regrettably, that situation was not
isolated. Abuses and mismanagement of donated funds continue at an
alarming rate within some charitable organizations, including the Toys
for Tots Foundation. Indeed, the past civilian president of the
foundation is being investigated for financial improprieties.
I am aware that many charities are run in an organized manner, with
full disclosure and excellent use of charitable contributions. These
are obviously not the organizations I am targeting. Further, these
well-run organizations should welcome my efforts; heightened disclosure
will reassure donors that their contributions are being well-spent, and
that will fare well and instill renewed confidence in all charitable
organizations.
In light of situations such as these, it is evident that my
legislation remedy continues to be both needed and timely. I find it
somewhat ironic that, had my measure been enacted shortly after it was
first introduced, the recent Toys for Tots incident might have been
avoided.
Toys for Tots is a worthwhile effort. Thousands of Marine Corps
Reservists committed to the program deserve our thanks and
commendation. It is unfair and unacceptable for their reputations to
have been tarnished by actions for which they bear no fault.
We also owe a debt of gratitude to the even greater numbers of
generous Americans who contributed to the Toys for Tots Program.
What will it take to stop this train? How many times must I come to
the Senate floor to implore my colleagues to stop looking the other
way, to demand accountability from charitable organizations who take
money from inherently goodhearted Americans?
Mr. President, this is another in a series of articles that really
began with the United Way tragedy where the press have exposed the fact
that certain well-recognized, well-accepted, well-funded, well-
supported charities have taken these donations and used them in such a
manner inconsistent with the objectives publicly stated by the charity.
In this instance all of the money basically went to run the charity.
Mr. President, I have introduced in this session of the Congress S.
565, together with the distinguished senior Senator from North
Carolina, legislation to begin to require these charities to make
greater public disclosure of their internal operations of the dollars
raised and how they are used.
Mr. President, I ask unanimous consent that the text of the bill and
additional material be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 565
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. IMPROVED DISCLOSURE TO DONORS BY TAX-EXEMPT
ORGANIZATIONS.
(A) In General.--Section 6033 of the Internal Revenue Code
of 1986 (relating to returns by exempt organizations) is
amended by redesignating subsection (e) as subsection (f) and
by inserting after subsection (d) the following new
subsection:
``(e) Additional Requirement For Tax-Exempt
Organizations.--
``(1) In general.--Except as provided in paragraph (2), any
organization described in section 501(c)(3) or 501(c)(4) and
any separate segregated fund described in section 527(f)(3)
maintained by such organization, which is subject to the
requirements of subsection (a) shall--
``(A) advise each contributor of the availability of a
disclosure statement described in paragraph (3), and
``(B) shall furnish such statement upon written request
to--
``(i) such contributor, or
``(ii) any potential contributor,
within 30 days of such request.
``(2) Exception.--Paragraph (1) shall not apply to--
``(A) any organization described in clause (ii) or (iii) of
section 170(b)(1)(A)), or
``(B) any organization the gross receipts of which in each
taxable year are normally not more than $100,000.
``(3) Disclosure statement.--The disclosure statement
described in this paragraph is a statement for the most
recent taxable year for which a return under subsection
(a) has been field, which contains the information
described in--
``(A) paragraphs (1), (2), and (3) of subsection (b), and
``(B) paragraphs (6) and (7) of subsection (b), but only
with respect to--
``(i) the 5 highest compensated individuals of the
organization for such taxable year, and
``(ii) any other individual whose total compensation and
other payments from such organization for such taxable year
exceeds $100,000.
``(4) Processing Fees.--Any organization furnishing a
disclosure statement under this subsection may require that a
self-addressed, stamped envelope and a fee not to exceed $2
to cover the costs of copying and mailing such statement be
included in the written request for such statement.''.
``(b) Penalty for Failure To Meet Requirements.--Paragraph
(1) of section 6652(c) of the Internal Revenue Code of 1986
(relating to returns by exempt organizations and by certain
trusts) is amended by adding at the end the following new
subparagraph:
``(E) Disclosure statement.--In the case of a failure to
comply with the requirements of section 6033(e)(1) (relating
to disclosure statements provided upon request), there shall
be paid by the person failing to meet such requirements $50
for each day during which such failure continues.''.
``(c) Effective Date.--The amendments made by this section
shall take effect on January 1, 1994.
____
Marines' Toys for Tots Spent Millions on Itself
(By Liz Spayd)
The Marine Toys for Tots Foundation, the chief fund-raising
arm for the Marine Reserve's Christmas gift drive, has
collected nearly $10 million in the last two years through a
direct-mail campaign, but foundation officials acknowledge
that none of the money has gone to buy toys for needy
children.
The charity also is the target of a federal probe into
whether its former president diverted money from the
nonprofit organization and engaged in other financial
improprieties for his personal benefit, according to
foundation officials and others familiar with the
investigation.
Marine Reserve officials said they are scrambling to
correct the problems, but said they are worried that the
foundation's questionable management practices will
jeopardize the success of the annual gift drive, which began
more than 40 years ago.
While toys donated to individual reserve units across the
country are reaching children who need them, most of the
money donated through the reserve's three-year-old foundation
is not.
Of all the money the foundation raised in its most recent
fiscal year--including corporate gifts and those from federal
workers through the Combined Federal Campaign--10 percent
went to buy toys, foundation officials said. The rest was
spent on management, fund-raising expenses and materials used
to promote the reserve's toy appeal.
And for the second year in a row, the donations mailed in
by more than 200,000 people across the country did not cover
the cost of running the foundation's massive direct-mail
effort, according to the charity's records.
``This foundation has been an embarrassment,'' said retired
Lt. Gen. Matthew T. Cooper, who took over the nonprofit's
reins five months ago. ``But we are trying to put the train
on the track, working seven days a week to assure the
public's money goes where it should.''
Foundation officials said the most serious problems stem
from their former president and chairman, Jerry L. King, who
was dismissed last summer after the Buffalo News reported
that King had been convicted of tax evasion and conspiring to
deal in counterfeit money.
Cooper said the foundation is cooperating with
investigators from the Justice Department and the U.S.
attorney's office in Buffalo in their efforts to determine
whether King took money from the charity.
Both of those offices said they do not confirm or deny
investigations. King, reached at his home outside Buffalo,
declined to comment yesterday.
After King left, Cooper said, numerous questions began to
arise about how the foundation's records were kept and
whether King was funneling money into toy companies in which
he had a financial interest.
A newly completed audit by a Bethesda accounting firm,
Whelan, Barsky and Associates, said that so many invoices,
purchase orders and other records were missing that the
auditors could not document whether hundreds of thousands of
dollars worth of transactions were authentic.
The financial report also raised questions about whether
the foundation paid for goods and services that were not
actually received. It questioned the foundation's
relationship with the two toy companies in which King had a
financial interest.
Foundation officials said they have moved swiftly to put
the charity back on track: They installed a new president,
expanded the board of directors, instituted tighter financial
controls and moved the headquarters from Amherst, N.Y., near
Buffalo, to rent-free space at the Marine Base in Quantico,
30 miles south of Washington.
But questions about their operations remain.
In a report issued this week by the Better Business Bureau,
the foundation is cited as violating six of the consumer
watchdog group's 22 standards for charitable organizations.
Among the group's concerns are the amount of money spent on
fund-raising and management and the lack of complete
financial data on the foundation's operations.
``It is unfortunate that so much of their money is being
consumed by fund-raising costs and overhead,'' said Bennett
Weiner, who oversees the bureau's charity division. ``I would
think that should be a serious concern of contributors.''
Cooper, who makes $100,000, and his operations manager, who
receives $45,000, are the only employees on the payroll. The
biggest expenses, records show, have been printing costs and
consulting fees paid to Steve Cram and Associates, a Fairfax
company that runs the foundation's direct-mail appeal.
Cooper declined to discuss the terms of that agreement,
except to say that it is being reviewed so that the charity
can receive more favorable terms.
____
[From the Washington Post, Feb. 10, 1994]
Marine Charity's Former President Is Target of U.S. Probe
``My goal, and it is an optimistic one, is to have 75
percent of the money raised in the next mailing go toward
program expenses, with most of that going to buy toys,''
Cooper said.
Part of the problem, according to the foundation, is that
it is very expensive to initiate a direct-mail campaign.
Fund-raising specialists agree that prospecting for new
donors through the mail can be a money-losing proposition at
first. But they also questioned why a charity that had sent
more than 14 million pieces of mail wouldn't have generated
some money for its cause.
``To have done that much mailing and not have anything to
show for it makes me think something is wrong. That's not
typical,'' said Hal Malchow, a direct-mail consultant to
several national nonprofit organizations.
Foundation officials also defended the fact that only a
small percentage of donations received has gone to buy toys.
Part of their organization's purpose, they said, is to
educate the public on the needs of poor children and to
encourage them to donate toys to individual reserve units.
Even with those expenses, the foundation said it still was
able to add 500,000 toys to the 8 million collected by
reserve units across the country last Christmas. The money
for those toys came from corporate donations and sources
other than the direct-mail campaign.
Washington area residents contributed 160,000 of the toys,
which the local reserve unit says went directly to needy
families in the area.
Sgt. Joseph Steigerwald, who heads the local toy drive,
said he has heard only rumor about the problems at the
foundation and was never told there was a federal
investigation or problems involving its operations.
As is practice, money donated in Washington is sent to the
foundation. Steigerwald said that money has been available
when he needs to buy toys.
Officials at the Marine Reserve's headquarters in New
Orleans said they are concerned about the problems at the
foundation and are conducting an annual review of the program
to ensure that the toy drive is operating efficiently and is
not jeopardized by the foundation's problems.
``We are reviewing the whole program, particularly in light
of the foundation and the investigation into it,'' said Maj.
Betsy Sweatt, director of public affairs for the Marine
Reserve.
``But Toys for Tots is a good program that has been serving
the community for years, and we want to make sure it stays
that way,'' she said.
Mr. BYRD. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. LEVIN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________