Martin Handler, an executive who ran special education agencies serving Haredi communities, was sentenced to over 4 years in prison after pleading guilty to charges related to theft and tax evasion.

United States District Court judge Jennifer H. Rearden sentenced Handler to 58 months imprisonment and ordered him to pay over two million dollars: $1,156,068.10 in restitution to the United States Department of Health and Human Services, at least $740,000 to the Internal Revenue Service, and a fine of $200,000. 

Court documents show that Handler had taken part in two related schemes to defraud the federal Head Start program and had also, separately, evaded taxes. “Mr. Handler’s conduct was selfish,” Rearden said at the sentencing in Lower Manhattan on Oct. 2. “Mr. Handler undermined the ability of HHS to provide oversight and prevent waste, fraud, and abuse,” Rearden added.

Rearden told Handler, 50, to surrender by 2pm on Jan. 7 to begin his sentence. The judge picked this date after Handler’s lawyers, Mark Harris and Hadassa Waxman, advocated for him to be able to celebrate the High Holidays and Hanukkah before going to prison.

According to the Justice Department, Handler profited personally from millions of dollars in federal funds meant to help the low-income families his special education agencies served, and evaded at least $740,000 in taxes in 2021 by falsely claiming he gave $2 million in charity.

Before he was sentenced, Handler appeared to cry during his final statement to the judge. “I understand and I know that I deserve punishment for my crimes,” he said, apologizing to his employees and his family, whose standing in the community he said was harmed because of his actions.

The Justice Department pushed for harsh punishment. Handler “knew what he was doing was wrong,” Assistant U.S. Attorney Daniel Wolf told the judge. White collar crime is hard to detect and prosecute, and the public must see that “it doesn’t pay to engage in this conduct,” he added.

The courtroom was so packed with people who came to support Handler that building employees needed to arrange a “spillover room” where additional attendees could watch the proceedings, which were livestreamed on large monitors.

Additionally, some of the Haredi community’s leading activists wrote letters to the judge on Handler’s behalf. One such letter came from David Zwiebel, the Executive Vice President of the Haredi lobbying organization Agudath Israel of America. After his conviction, but before his sentencing, Handler had given a speech at an Agudah event in which he discussed the importance of following the law. Zwiebel wrote about that speech, explaining that Handler’s “goal was to tell people, from a firsthand perspective, what NOT to do, what happens when you make mistakes and get in over your head.” Zwiebel noted that the “audience was deeply moved.” Handler’s lawyers said he has made multiple such speeches.

Handler also received letters of support from many others, including government relations consultant Ezra Friedlander, Rabbi Shmuel Gancz, who leads Chabad of Suffern, and David Gross, a member of Agudah’s board.

The courtroom process was lengthy, but even  two hours after they arrived, about 80 people — including Haredi and Black New Yorkers who were connected to Handler’s schools — were still in the main courtroom. Some Haredim were praying.

Prior to the sentencing, some people testified to the judge about what they described as Handler’s good character. Handler’s daughter, Pearl, appeared to cry while speaking about how her father welcomed strangers into their house and told her to follow the law. “My father is the most honest man I know,” Pearl said. “I won’t survive if he’s gone.”