The Scammer from Beit Shemesh! "Gemach Chasdei Yosef" Exposed as a fraud!

From CBN 

 *"Gemach Chasdei Yosef," which has run full-page ads in major frum magazines for YEARS, has been exposed as an alleged fraud operation targeting struggling Jewish families.*

After a months-long investigation cleared by NJ-based Rabbanim, overwhelming evidence reveals the operation's true nature.

For years, Gemach Chasdei Yosef used the sacred word "gemach" to gain trust. Their promise: "We have special bank relationships. We can get your credit card rates to 0%."

The reality: It is anything but a gemach. They lied about dozens of things and allegedly charged their victims thousands of dollars up front for services that federal law prohibits from requiring advance fees, often before even signing a contract, for ordinary debt management services that legitimate nonprofits provide for about $25 a month.

Ben Sion Abadi ( who lives In Beit Shemesh) allegedly operates both “Gemach Chasdei Yosef” and the so-called “law firm” M Law Collect, creating what sources describe as a fake referral system designed to disguise a single predatory operation. Victims report unauthorized credit-card charges, excessive and prohibited fees, fake email accounts created in their names, and being locked out of their own debt-management accounts.

*@JewishMedia- Its Monday night and your magazines have not been printed yet. Please do the right thing ….*

The Gemach That Wasn't Gemach Chasdei Yosef’s Alleged Fraud Operation Note: 

This investigation has been cleared to go public by a dayan who has conducted his own investigation, including speaking to both Abadi and victims as well as carefully examining pages of documentary evidence.

 The Scheme 

 For years, Gemach Chasdei Yosef ran full-page ads in major frum magazines, calling itself a “gemach”—a charitable fund helping families erase credit card debt. 

The promise: 

“We have special bank relationships. We can get your rates to 0%.” ● And they did get people’s debt reduced, using industry standard tactics ● But they were also charged $4,000–$30,000 upfront for services that are prohibited under federal law from requiring advance fees, whereas legitimate nonprofits provide similar programs for about $25 a month.” 

  How the Scheme Operated 

Evidence points to both Gemach Chasdei Yosef and M Law Collect being owned and controlled by Ben Sion (AKA “Bensi” or “Sion”) Abadi. ● The two entities presented themselves as separate, creating a fake “referral” system to disguise what was, in effect, a single very profitable operation. ● 

The pattern:

1. Families saw ads in respected Jewish publications 2. They called what they believed was a charity that promised to help them for free 3. They were referred to M Law Collect 4. Families were charged exorbitant fees illegally, in some cases, without even being told in advance 5. Clients were placed into standard Debt Management Plans (DMPs) available to anyone—without any “special bank connections” 

 The violations: 

 Unauthorized charges: Billing credit cards before contracts signed or without permission ● Identity theft: Creating fake email accounts in clients' names to control communications with credit counseling agencies ● Locking clients out: M Law website taken down, preventing clients from accessing their own debt accounts ● Forced silence: Staff required to sign NDAs with penalties in the hundreds of thousands of dollars ● Coerced endorsements: At least one rabbi says he was pressured to sign endorsement letter ○ As of publishing time, at least three rabbis have retracted their endorsements 

 The Lies 

 "We're a nonprofit gemach"

 ● Not registered with IRS, New York State, or New Jersey State as a nonprofit 

 ● After this investigation began, GCY quietly added a disclaimer calling itself a "for-profit entity." ○ LinkedIn, press releases and on the site STILL call it a nonprofit 

 ● A gemach typically lends money or valuable services for free. Instead GCY (which accepts donations) charges people for things that should be free "We have special bank relationships" 

 ● They used generic low-cost DMPs through third-party counseling agencies like GreenPath, which are available directly to the public "Services provided free of charge" 

 ● Families were billed thousands before work began. One client with $250,000 in debt was charged $30,000. "M Law Collect is a separate referral partner" Documentary evidence reviewed for this investigation demonstrates that M Law Collect, like GCY, was owned and controlled by Abadi. M Law Collect is also not registered as a law firm in New York or New Jersey, though it has claimed to be one.

 If You've Been Hurt Take these steps immediately: 

 1. Call your bank and stop withdrawals from M Law or whoever has been taking money from your account. Do NOT stop valid DMP payments. 

 2. Contact your credit counseling agency (GreenPath, MMI, or whichever DMP you're enrolled in). Reclaim your account by resetting the email and password. 

 3. Call your bank and tell them you were the victim of a scam. Ask if they can refund the allegedly unauthorized or unlawful M Law withdrawals.

 4. Contact your credit card company to dispute any charges that you now discover may have been processed illegaly. The Bottom Line Real debt relief comes from certified nonprofit credit counseling agencies. They don't charge thousands upfront. They don't hide behind fake charitable names. And they don't prey on families already drowning in debt.

 Gemach Chasdei Yosef advertised for years in respected publications. Rabbis endorsed it. Families trusted it. That trust was exploited for profit.