Four Hasidic men from New Square – Benjamin Berger, Jacob Elbaum, David Goldstein, and Kalmen Stern – created a non-existent Jewish school and enrolled thousands of students, to receive US$30 million in education grants, subsidies, and loans from the U.S. federal government. Some of the money were used to enrich themselves, but also to benefit the community institutions. The fraud scheme in New Square was tied into larger schemes in other ultra-Orthodox communities in Brooklyn and across the country. The men were convicted in 1999. In October of that year, all four men received prison sentences ranging from 30 months to 78 months. Two other suspects who were indicted left the United States. The indictment drew sharp criticism in New Square. A statement by village representatives accused authorities of having a "vendetta" against New Square residents, and acting "in a manner remindful of the Holocaust", during the investigations.