Rabbis battle it out over Young Jewish Professionals organization

Young Jewish Professionals is the go-to real estate networking organization in New York City, a place where up-and-comers meet real estate pros at the chic “Mansion” it owns near Union Square.

But behind the scenes and away from the catered kosher meals, there is a nasty legal battle playing out in secular and religious court, pitting one rabbi against another over YJP’s funds and its prime piece of property, the building at 105-107 East 16th Street.

Rabbi Naftali Rotenstreich alleges the organization he created has been usurped from him by his once trusted employee Rabbi Shaya Lesches, according to a lawsuit in New York Supreme Court.

Rotenstreich alleges Lesches created a sham organization, YJPF, to steal funds from YJP. Lesches counters that Rotenstreich is the one who stole money and locked him out of YJP’s premises.

A rabbinical court ruled in favor of Lesches last year. As part of that ruling, YJPF is supposed to receive title to the Mansion.

After losing in religious court, Rotenstreich tried to reargue his claims in secular court, but things didn’t fare much better. New York Supreme Court Judge Melissa Crane largely stuck to the rabbinical court’s ruling. She allowed Rotenstreich to reargue some of his issues back in court or to return to a religious arbitration panel. Rotenstreich’s lawyers at Kasowitz Benson Torres are appealing the ruling.

Rotenstreich said the rabbinical court’s ruling has not just impacted YJP but also his livelihood. He alleges the religious court accused Rotenstreich of being a “moser,” a highly offensive term, meaning an informant of Jews to secular authorities.

Rotenstreich alleges he founded YJP as an unincorporated division of the Chabad of Gramercy Park in 2008 to “provide business, educational, and social networking opportunities for the next generation of Jewish leaders.” He hired Lesches about this time to help with fundraising.

The organization took off and brought in about $700,000 to $800,000 a year, and the Chabad of Gramercy Park was able to buy the 16th Street property worth $6 million in 2014, according to Rotenstreich.

But in 2018, Rotenstreich alleges that Lesches created a non-profit organization, YJPF, which he used to divert YJP funds without his knowledge.

Rotenstreich alleges Lesches instructed donors to address checks to YJPF without informing them they were sending their checks to an organization that was separate from the original YJP.

Rotenstreich further alleges he discovered that Lesches stopped making mortgage payments on the property. Instead, Rotenstreich alleges Lesches used the money to buy a $5 million townhouse on West 44th Street and a weekend home in Pomona, New York.

Rotenstreich claims he confronted Lesches about this, who reacted by locking Rotenstreich out of YJP’s website, social media, and database.

Lesches, meanwhile, claims it was Rotenstreich who diverted money. Lesches alleges in a filing that Rotenstreich diverted about $74,000 from YJPF. He also alleges Rotenstreich changed the locks to the Mansion and locked YJPF out of the premises.

Lesches argues that it was thanks to his fundraising that the Mansion was purchased in 2014.

Much of the legal dispute centers on the rabbinical court’s ruling.

The rabbinic court consisted of three arbitrators. Ultimately, the court ruled in favor of Lesches and awarded YJPF possession of the 16th Street property.

In a confusing ruling, the court allowed Lesches to operate YJPF and Rotenstreich to operate YJP, which means two now-separate organizations are going after the same assets.

Rotenstreich argued the arbitration panel was biased and claimed Lesches selected one of the arbitrators who favored him. Rotenstreich further alleges Lesches continues to infringe upon Chabad’s trademark “YJP” in all of its advertising and promotion of YJPF.

Lesches said in turn that Rotenstreich had every opportunity to present his position to the panel. He said the arbitrators never prevented him from presenting any issue or evidence.

The secular judge, Melissa Crane, acknowledged the situation created by the rabbinic panel was “a mess.”

But Crane declined to vacate any ruling made by the panel pertaining to YJP’s premises. She also said Rotenstreich failed to prove that the arbitration panel was biased.

Rotenstreich “has failed to show by clear and convincing evidence that there was corruption, fraud or misconduct,” said Crane.

Rotenstreich is appealing the decision to transfer the title of the Mansion.

Lesches and YJPF’s attorneys declined to comment.

Both the August and September real estate panels are still posted on YJP’s web schedule.