Rabbis Urge a Jewish Community Torn Between Tradition & Tech to Skip Gathering This Passover

Things seemed almost normal along the strip of Pico Boulevard near South Robertson, an L.A. intersection that has for decades become the center of Jewish life, especially Orthodox Jewish life. A man dressed for Shabbat walked purposefully through the quiet neighborhood this past Saturday. Others milled about visiting at a distance, or went for what appeared to be a stroll.

But this kind of scene in the age of coronavirus has set off a social-media firestorm in the community: Why are they out, and where are they going? With Passover just days away, some members of L.A.'s Orthodox Jewish community took to social media, upset over alleged secret prayer gatherings and underground efforts to celebrate the Sabbath and upcoming holiday in person. Some advocated that those who arrange these meetings along the Pico-Robertson corridor be turned into the police, according to messages and screenshots reviewed by dot.LA.


The Orthodox Jewish community is wrestling with a new era of religion, one in which people have flocked to online platforms like Zoom, live streaming social media, and pray.com for their religious needs. But that's a hard sell if you're Orthodox and strictly abide by Jewish law, which prohibits the use of electricity on Shabbat and holidays. Continued efforts to congregate in person led a rabbi at Cedars-Sinai Medical Center to issue an urgent dispatch last week about "an alarmingly high ratio of Frum (Orthodox) patients among those that are positive for the disease."

In one of multiple Facebook posts on Sunday, community member Aryeh Rifkin, wrote: "If you hear about minyanim or gatherings (in person), post the names and addresses. Expose them. Don't be afraid to do the right thing. Weak leadership must be cut off especially finanically [sic]. If you have information and say nothing then you could be endangering lives."

The Chabad Bais Sonia Gutte Campus on Pico Blvd. in Los Angeles Photo from\u00a0Wikimedia.org

Rifkin, who founded SKSI Plans and Permits and attended a neighborhood shul, has himself been fighting the novel coronavirus since March 18, and has been hospitalized twice because of it. One woman replied, saying her son was told by another person that he attended a community meal this past Friday with five other people. The woman did not respond to a request from dot.LA for more details. Others who did provide details were kicked out of groups and WhatsApp chains.

For weeks the debate over whether it is OK to meet has been ongoing on social media and in more private messages, as families and close-knit religious communities have tried to figure out how they will celebrate the upcoming holiday of Passover — which begins on Wednesday evening and lasts for eight days — amid the L.A. order to remain home unless for crucial necessities like food or medicine. Many in the heavily Persian-Jewish and Orthodox communities around Pico-Robertson are also ardent supporters of the Trump administration and have been slower to adopt distancing measures or believe in their necessity.

Such questions over whether ritual Passover meals, or Sedarim, could go forward, led the primary representative body of Orthodox Judaism in California, the Rabbinical Council of California, to put out a letter to rabbis and community outlets last week on this specific issue, according to a copy provided to dot.LA on Monday by Rabbi Avrohom Union, the rabbinic administrator of the RCC.

The letter noted that "all travel for any part of Yom Tov (the holiday) is forbidden, both for travel out of town or with family or friends locally."

Then, in bold, it stated that it's an absolute necessity and obligation under Jewish law, "to abide by government and health department restrictions. This is for our protection and the protection of everyone around us."

Rabbi Jason Weiner, the senior rabbi and director of the Spiritual Care Department at Cedars-Sinai Medical Center in Los Angeles, also sent out a letter to community rabbis last week urging people to stay home and practice social distancing. That letter ultimately ended up being circulated on Facebook among Jewish groups.

The Modern Orthodox B'nai David-Judea Temple on W. Pico Blvd.

Photo from Wikimedia.org

The rabbi said in the letter that "we are entering the most intense period of the COVID-19 outbreak and an alarmingly high ratio of Frum (Orthodox) patients are among those that are positive for the disease."

Cedars-Sinai, which was originally founded as a Jewish hospital, is also the closest major hospital to the Pico-Robertson neighborhood.

"Avoid Shabbos walks with others - no backyard minyanim, even with physical spacing!" Weiner wrote. "No play dates for children - schools are closed for a reason; this causes great danger! No guests at the sedarim - this includes family members outside of the household. With regard to the Seders, it cannot be stressed enough that only family members already living together under the same roof and in close daily contact should have the seder together."

Passover is especially difficult this year for many because it is a religious holiday that celebrates the Jewish peoples' freedom from slavery in Egypt with a gathering over a festive and ritualistic meal. Children sing songs and families have traditions that are passed on from generation to generation.

The Orthodox community has been split on whether to allow technology to "count" as the requisite congregational prayer for Shabbat and festivals during this COVID-19 pandemic, with leading rabbis deciding that it is better to pray alone than to use forbidden technologies like Zoom during such holy days.

A ruling by Israel's chief rabbis last week stated that Jews cannot use technology to pray during religious holidays has left families split and more religious members to pray at home alone. That's despite an earlier decision by prominent Sephardic rabbis in Israel to allow such technology for the Passover Seder to allow for remote gatherings amid the novel coronavirus pandemic. Many slammed that letter once it became public.

But that eschewing of technology may also be leading Orthodox families or those with more Orthodox members, to decide to meet in person. New York's ultra-Orthodox neighborhoods saw a swift rise in coronavirus cases due to their continued gatherings for prayer, and many Jewish-American communities have taken it as a cautionary tale.

On Saturday, Rabbi David Wolpe, a senior rabbi at L.A.'s Sinai Temple — Southern California's oldest and largest Conservative congregation, whose congregation includes a large number of Persian Jews — dedicated his Zoom sermon to pleading to those in the congregation who had plans to gather for Passover (or Pesach, in Hebrew), to cancel those plans.

"It is my understanding that there are some people in our community who are going to have a Pesach Seder with lots of people in spite of the fact that they've been instructed not to," Wolpe said. "It is to them primarily I'm speaking now."

Wolpe, who was named the most influential rabbi in America by Newsweek and one of the 50 most influential Jews in the world by the Jerusalem Post, said he understands the pain of celebrating alone or through an electronic medium rather than collectively as a family.

"But I want you to know that anybody who invites people over to the Seder this year is violating Jewish law in the most serious way," Wolpe said, warning that while you may be fine, you or another invitee could be a vector for disease and devastating consequences.

"This is not the year to be a hero, this is the year to be a little afraid, this is the year to allow your intelligence and your concern and your empathy to override your ego," Wolpe said. "It is better to be sad, then to be sad and sick. It is better to be smart than to have made a decision that will haunt you the rest of your days."


Shabbat Sermon by Rabbi David Wolpe: A Passover Like No Other- 04/04/20 www.youtube.com

Conservative Jewish leaders have also grappled with how to hold services, but ultimately

decided to allow them to count because of a prevailing human need right now.

B'nai David-Judea, a modern Orthodox shul in the Pico-Robertson area, is using technology to facilitate prayer only during the weekdays and not on Shabbat or festivals. That includes having everyone gather together at a certain time to pray, even if they are alone in their home.

"We're living in a very painful time where people have a strong yearning to be close to each other and to be close to God and need to reach out for community," said Rabbanit Alissa Thomas-Newborn. "At the same time, the way in which we can be closest to each other and closest to God is by not showing up in person. And that's a spiritual tension that is jarring. That is very challenging for us to digest."

Thomas-Newborn said the synagogue has not been in the position of having to reprimand its congregants for trying to gather and has been repeatedly emphasizing the need for people to stay home.

For those who are in mourning — sitting Shiva — or observing the anniversary of a close family member's death, the inability to gather has been particularly difficult because of requirements that prayers are done with a certain number of congregants present. Zoom can help bring people together, but it doesn't "count" as if they were there.

"We've had people who have sat Shiva during this time," Thomas-Newborn said. "When they sit Shiva, we've done it on Zoom where people visit and see each other, provide words of comfort and condolence and share words of reflection."

The congregation has provided its members an alternate prayer for Kaddish, the mourners prayer, that can be said solo, instead.

Meanwhile, in Israel, a minyan of coronavirus patients who belong to Chabad, an Orthodox Jewish Hasidic movement, have offered their services to recite the mourners prayer for those who are currently mourning or have an anniversary during this time via an online form anyone can fill in.

"Simply enter your info on this form, and Kaddish will be said on your behalf three times a day until Minyanim will be reopened around the world," the website states.

In an emotional video posted to Facebook at the end of March, Rabbi Shimon Freundlich, the Chabad-Lubavitch emissary who is in Beijing, China, spoke passionately about the need for people to stop gathering for a minyan, or congregational prayer, even if outdoors.

VIDEO 2020 03 27 18 18 44 www.youtube.com

Jewish law 'is full of the importance of a minyan," Freundlich said "Not when it comes to a pandemic. Not when peoples' lives are at risk. People are dying, but somehow people have to run to this minyan."

Freundlich noted that in Judaism, saving a life supersedes all other religious obligations, including observing the Sabbath -- and that includes requirements to gather with at least 10 adult men to pray.

"Therefore, I implore you to make sure that you don't do anything reckless or irresponsible because you want to, you feel like you want to do it," he said. "We need to be responsible. We are fighting an invisible enemy. Because you can't see it doesn't mean it doesn't exist."

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For more on religion, technology and COVID-19, read this story and watch our virtual panel here. Reach out to me on Twitter @latams, where my DMs are open, email me at tami(at)dot.la, or ask for my Signal.

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Their Russian investor was dead.

On a late Tuesday night in early May, the billionaire Russian coal tycoon, Dmitry "Dima" Bosov stopped answering phone calls and messages. When his wife, Katerina, arrived at their mansion in the suburbs of Moscow, she found her 52-year old husband locked in the family's home gym, dead from an apparent gunshot wound to the head.

The owner of multiple Russian coal companies had a penchant for ice hockey, snowboarding and placing big bets on businesses. More than 6,000 miles to the west, Bosov had been trying to build a new foothold in cannabis.

The Genius Fund was run by Ari Stiegler and Gabriel Borden, two twenty-something friends who had lofty ambitions of dominating the cannabis market first in the U.S. and then internationally, with a roughly $164 million bet from Bosov.

Their idea was to create a vertically integrated company that owns its own supply chain, producing, distributing and selling cannabis products more efficiently. It's a model that has proven particularly effective for other cannabis companies like MedMen, Caliva and Natura, which have raised millions in investor funding.

Genius Fund, however, blew the money in less than two years. Company executives ran up five-figure tabs, built lavish offices and manufacturing facilities, hired armed security in their pursuit to build a cannabis empire, an investigation by dot.LA found. In the end, the Russian-funded venture crumbled.

Editor's Note

The story is pieced together from interviews with more than 40 former employees and business associates, active and retired county officials, as well as federal and county law enforcement; state court records, arbitration, arrest and corporate records in the U.S. and Canada; other public records in six California counties; Genius Fund corporate records and emails. Some former employees and business associates spoke to dot.LA on condition that their names not be mentioned out of fear of reprisals.

This is the first in dot.LA's "Green Rush" series looking at the rise and fall of cannabis-related startup Genius Fund. Sign up for dot.LA's newsletter to be notified about new stories.

Stiegler and Borden publicly referred to Genius Fund as a private equity fund, but the company functioned more like a family office for their high wealth investor, or a conglomerate that rolled up into one parent entity. They headquartered Genius Fund originally in Venice, California, and later, Culver City.

Genius Fund's expansive structure included more than 50 corporate entities, mostly limited liability companies, spread across farming operations, CBD and THC manufacturing processes, product development, delivery operations and a retail front, according to domestic and international corporate filings. Each of Genius Fund's main operational entities had its own CEO or general manager.

At its peak, the overall business employed more than 300 employees and contractors, corporate records showed.

Genius Fund was one of dozens of new marijuana-related startups that have sprouted up in recent years after California legalized recreational marijuana. Like others chasing the "green rush," Genius Fund wanted to position itself as an early giant in California's marijuana market, which is the world's largest legal pot market, according to 2019 industry reports. It's an industry that has generated nearly $3.1 billion in spending in the Golden State alone.

The company was beset with problems, according to former employees from all levels and areas of the organization who agreed to speak to dot.LA on condition that they not be named in the story out of fear of reprisals.

"Not one person at the top knew what they were doing," said a former employee — a sentiment that was echoed by many of their former colleagues and repeated by the company's now ex-CEO in his more than $3.5 million lawsuit against the company and its Russian oligarch owner filed in April in the U.S. District Court for the Central District of California in Los Angeles.

Kismet

Ari Stiegler and Gabriel Borden first met while in college. They reconnected in early 2018 at a crypto-scene party that Borden threw in his family's Santa Monica, California, home. It was kismet in a way.

Business associates described Borden, now 26, as a shy, trusting and empathetic guy. The son of the executive producer and creator of Disney's "High School Musical," Borden had access to his father's Rolodex, according to his associates. Stiegler, now 28, was described by associates as brash and cocky, someone who knew how to talk a big game and sell investors on a vision, even if he may have known little about the industry.

Both were young serial entrepreneurs working out of the heart of Silicon Beach.

Early in their relationship, Stiegler arranged for Borden to be made an advisor for a cryptocurrency exchange company, then called Samsa Technologies Inc., which Stiegler co-founded in 2017 with another friend. Stiegler already had a history of jumping quickly from one business venture to another in search of hitting it big, according to former investors and business partners.

Stiegler spent office hours planning his own side businesses or watching YouTube videos, a former investor in one of Stiegler's earlier ventures, Rob Sciama, said.

Borden was good at nurturing relationships and bringing people to the table. He had always been attracted to business and not afraid of reaching out to industry leaders, including major business executives and VPs, while at Loyola Marymount University. While in school, he helped get InterWallet off the ground. That company would become Van Nuys-based Maya Labs, which provides a self-service kiosk payment solution for the unbanked and underbanked.

Several months after their first meeting, they met with a possible Russian investor, Dmitry Borisovich Bosov, a contact of one of Borden's classmates at Loyola Marymount, to talk about a possible investment opportunity.

Stiegler said in an interview that Bosov wanted "good entrepreneurs in L.A. to run a cannabis company" for him.

"He really liked us and basically said, 'Hey, you guys need to quit your companies and come work for me,'" Stiegler told dot.LA. "It's not every day that someone offers to invest millions of dollars into a company. So we were like, 'OK, yeah, sure we can do this right now'."

Stiegler's colleague, Borden, did not reply to multiple requests for comment.

The new opportunity came with the promise of $160 million investment for the cannabis business even though neither he nor Borden had any experience in the industry, according to two people with knowledge of the meeting.

With the promise of millions and a hefty chunk to start, the company called Genius Fund was underway.

A screenshot of Genius Fund's website from August 2018 shows the company's leadership team. Top left to bottom right: Ari Stiegler, Gabriel Borden, Danny Abyzov, Andrew Dillard, Andrey Pirumov, Daniel Sarpa and Chris Clifford.

A Ticket to 'Generational Wealth'

The early days of the company were an exciting time. Stiegler served as the company's CEO and CFO, while Borden served as secretary, according to state corporate records. But they referred to themselves as managing partners, according to multiple employees and the company's website. Two Russian executives were also referred to as managing partners at Genius Fund. One was Bosov's friend, Andrey Pirumov, who headed up marketing, and the other was Borden's college classmate, Danny Abyzov, who knew Bosov through his father, Mikhail Abyzov, another Russian oligarch.

Abyzov, the father, once served as a minister in former Prime Minister Dmitry Medvedev's cabinet and was arrested in March 2019 for allegedly embezzling $62 million and depositing the money in foreign banks, per Fox Business News and other media reports. Abyzov pleaded not guilty and Russian state media reports that he remains jailed. His attorney did not reply to an emailed request for comment. Abyzov's duties as a cabinet minister had been to make Russian government transparent and accountable, according to Russian government records.

The son's executive role at Genius Fund ended after his father's arrest, several former employees said.

Friends and business associates said they heard Stiegler say that Genius Fund was his ticket to "generational wealth." He and Borden focused on lining up new hires and possible partners to start work.

Stiegler hired his roommates and frat brothers from the University of Southern California, some of whom he plucked out of jobs as a manager at a pizza joint, a worker in a mailroom, a busboy and bartender, to become analysts or work specialized roles like growing 1,000 acres of hemp, at Genius Fund's various entities, according to their LinkedIn profiles and interviews with former employees. Many made more money than they had ever made in their lives, former employees said in interviews.

From leased cultivation fields to manufacturing facilities for CBD and THC, product lines, even a brand incubator and a retail store, by the fall of 2019, the multi-faceted company operations were mostly up and running.

It was a time of fast growth, with millions in investor funds — as much as $18 to $20 million — wired every few weeks from Bosov's company in Russia, corporate records reviewed by dot.LA show. Russian investors have flocked to the cannabis industry in the U.S. as traditional banks have shied away from it, even though the plant is illegal in their homeland.

Many employees left jobs at well-known brands, including places like MedMen, to work for Genius Fund.

"Everything was optimistic, in a 'things are about to take off' sort of way," said a former employee.

The company's early hires worked out of two live-work apartments in Venice, right by the beach. When Bosov and his wife visited around last spring, one of the apartments — a one-bedroom, one-bath — was so clogged with office furniture and desks it was difficult to move around. Neighbors complained about dozens of people going in and out all day, according to a person with direct knowledge.

Genius Fund's executives had high ambitions and needed bigger digs. Its roughly 35 staffers moved into a new 12,895 square foot, three-story office building with skylights, thermal ash hardwood flooring and floor-to-ceiling windows in Culver City in the spring. The parking lot featured a Tesla supercharging station.

Genius Fund paid $2 million in cash upfront to lease the property, along with two months of rent, at roughly $65,000 per month, according to corporate records and two former employees with direct knowledge of the lease terms.

The Genius Store at 7569 Melrose was the only store the company opened.Photo by Tami Abdollah

The High Life

In the early days, Stiegler and Borden traveled every few weeks to places such as Forte dei Marmi, Italy to meet with their Russian investor and to party on yachts. Stiegler also traveled at Bosov's request to Russia and Cabo San Lucas in Mexico, where Bosov frequently stayed.

The two created a high-life culture, regularly flying in private jets, former employees said. To wow an investor, company executives rented a catamaran. Stiegler enjoyed meals out at expensive restaurants, according to two business associates, and donned a pricey Rolex he said Bosov gave him for his birthday.

Genius Fund executives bought both business and non-business items with company funds, including luxury vehicles such as Escalades and Teslas, "daily lunches that would regularly cost in excess of $1,500" and same-day business class one-way tickets "without any business need for such wasteful spending," according to allegations in Genius Fund's ex-CEO Francis Racioppi's whistleblower retaliation lawsuit against the company and Bosov.

Stiegler said the $1,500 was for a meal service for employees at the company. He added that he, Borden and Pirumov all had an ownership interest in the company, but Bosov was the majority owner and signed off on all investments and hiring decisions.

"He's the boss, but, like, we're here to, you know, execute his objectives on the ground," Stiegler said. "I was kind of just a fancy employee really."

When someone needed to be picked up at the airport, company officials realized they didn't have a "Genius Mobile." So the company purchased a new black Mercedes Sprinter with customizations that included fancy upholstery with Genius Fund's logo and a flat-screen TV, former employees said.

Genius Fund leadership spent money "recklessly," with one company executive insisting on purchasing desks, computers and monitors for more than 50 potential employees who the company had no immediate plans to hire, according to allegations in the ex-CEO's court documents.

"Bosov was giving a lot of money with very little questions," former executive Evan Kagan said.

The interior of Genuis Fund's Mercedes Sprinter van with custom upholstery.Photo provided by a source who prefers to remain anonymous.

Employees charged personal expenses like spa visits to their company cards, according to former employees with direct knowledge. Another Genius Fund employee used the company-issued credit card to donate $2,800 to the Trump Victory PAC in Massachusetts, according to Federal Election Commission data. Corporate records show a matching charge on a Genius Fund Amex card.

Meanwhile, personal items like surfboards, dozens of voice recorders and a Gita robot, were purchased by Genius Fund for Bosov and shipped or couriered to him in Russia or Italy, the ex-CEO's lawsuit alleges.

"Yes, we bought a Tesla, but it was Dima's personal Tesla and he repaid us for it," Stiegler said. "Yes, we bought him a surfboard for his birthday. But, whatever. It's like a $800 surfboard and he invested a ton of money in the company."

In addition to the Tesla, former employees said, Bosov utilized the company's staff for upkeep and maintenance of the couple's Beverly Hills residence, the lawsuit states. His wife used her Genius Fund American Express card on high-fashion shopping trips at Chanel in Monaco and Luisa Via Roma in Florence, Italy, according to company records.

"Were funds that were sent into the company bank account used for personal things that Dima and his family needed in L.A.? Yes," Stiegler said. "If they needed a car to drive around, we bought him a car. When they went to dinner, they used the company credit card but then they would reimburse the company," he added. "They didn't have anyone to be their helpers in L.A. We were their helpers."

Inside the company, a toxic culture was forming, according to former employees who were there.

Genius Fund hired models and nightclub dancers to dress in skimpy clothing for its exhibits at trade shows, former employees said.

Multiple former business colleagues told dot.LA they heard Stiegler make sexist, demeaning comments about women, for example, stating women aren't as skilled at business as men are. Former employees said they saw Stiegler look women up and down, use them as props to ease business relationships, and make comments about what women wore and their appearance. Former employees also remember hearing that a female executive assistant was upset after Stiegler noted a scheduled hookup with a "hot Swedish" chick on his work calendar. A friend of Stiegler's remembers him bragging and laughing as he recounted the same story.

Stiegler denied those characterizations.

"Absolutely not," he said. "I come from a nice Jewish family, you don't do that, you don't treat employees like that or say rude things."

Former business associates described Stiegler as someone who didn't care what anyone thought, so long as his actions could be justified legally.

By the end of 2019, Genius Fund planned for the cannabis empire to be up and running and already in the black.

The company grew a complicated infrastructure, with roughly 20 active entities, each with its own books, and multiple bank accounts that former employees said never appeared to be used for operations. dot.LA found in public records more than 50 business entities, including one in Canada, that Genius Fund registered or acquired during its less than two years in operation.

Amit Sharma, CEO of FinClusive and former U.S. Treasury official who dealt with money laundering said that generally — not about Genius Fund — having upward of 50 plus different entities seems excessive for a new startup. But, he added, some companies do create sub-entities for potential future spinoffs, mergers or acquisitions of other businesses, and to protect intellectual property or avoid taxation.

Cannabis-related businesses already operate in a strange gray area between federal laws that make marijuana illegal and states that have decriminalized its use, Sharma said. That forces some companies to rely on business practices that may appear shady, but are in fact workarounds. They may have no other choice, he said.

Genius Fund's former CEO Racioppi characterizes the company's story as a "sordid tale of corporate mismanagement, subterfuge, and fraud involving an amalgam of shell companies that self-identify as part of the 'Genius Fund Group,'" in his whistleblower retaliation lawsuit.

Attorneys representing the defendants responded in the case that Racioppi was never terminated and characterized him as a disgruntled CEO who was unwilling to take direction from the new owner. They argue the case should be in arbitration, not in court.

"An employee's frustration that he was not given greater freedom to operate a company as he wished does not constitute breach of an employment contract," the response said, noting that Racioppi had never sent over a resignation notice.

Many former Genius Fund employees said they still don't know what to think of their time with the company. Rumors about the real intentions of Bosov's financial dealings were common, some former employees told dot.LA.

"A lot of us were not sure," a former employee said. "It looks funny, shady, but maybe nothing illegal is actually happening, and maybe, maybe it's just stupidity as well. We were all like, 'Maybe, maybe'."

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This is the first in dot.LA's "Green Rush" series looking at the rise and fall of cannabis-related startup, Genius Fund. Sign up for dot.LA's newsletter to be notified about new stories.

Do you have a story that needs to be told? My DMs are open on Twitter @latams. You can also email me at tami(at)dot.la, or ask for my contact on Signal, for more secure and private communications.

Lead art by Candice Navi

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