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Religious School Keeps $500,000 After Reneging on Illegal Contract

Religious School Keeps $500,000 After Reneging on Illegal Contract

Religious School Keeps $500,000 After Reneging on Illegal Contract

Court refuses to enforce agreement to pay commission to group that helped file false application for contribution
When Kohl’s Department Store initiated a $10 million grant program for schools in the United States in 2010, the Jewish Educational Movement in Beverly Hills, CA, became interested. Because JEM did not meet the criteria Kohl’s had established for obtaining the award, a rabbi from JEM approached the Netan Eli Hebrew Academy, a nearby school that met the criteria, offering help to Netan Eli in applying for the award that JEM wanted for itself. They agreed that JEM would help Netan Eli apply for the grant, and Netan Eli would give JEM $450,000 as a “commission based salary” if they were successful. When Netan Eli won the grant, it refused to honor the agreement. JEM intercepted delivery of the...

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