Businessman guilty in Brooklyn arson

BY ROBERT E. KESSLER
STAFF WRITER

May 19, 2005

A prominent businessman in Williamsburg's Hasidic community was convicted yesterday in federal court of setting fire to his Brooklyn factory to collect $4.5 million in insurance money.

In addition to arson, Nathan Schlesinger, 68, of 234 Marcy Ave., Brooklyn, was found guilty of use of fire to commit a felony, money laundering, and mail and wire fraud. Schlesinger's square-block-size factory at 750 Kent Ave., Brooklyn, manufactured women's clothing under store-brand labels for upscale stores such as Neiman-Marcus and Saks Fifth Avenue.

Fire officials sent out a "mayday" call when contact was lost with a firefighter battling a blaze inside the factory in December 1998, one of the five fires that figured in the case against Schlesinger. The firefighter was quickly found unharmed. Schlesinger also was convicted of collecting another $4.5 million by inflating the damage on the other four fires. Schlesinger's attorney, Douglas Burns, said, "We are extremely disappointed in the outcome and will vigorously pursue an appeal."

The case was brought after a five-year investigation by the IRS, the federal Bureau of Alcohol Tobacco and Firearms Enforcement, and fire marshals.

Under federal guidelines, Schlesinger faces a mandatory prison sentence of 10 years for conviction on the use of arson in commission of a felony. When fraud and money laundering counts are included, Schlesinger could face between 235 to 293 months in prison. U.S. District Court Judge Arthur Spatt ordered Schlesinger held without bail, saying he was a flight risk because of the prison sentence.

Many Schlesinger supporters from Williamsburg's Satmar Hasidic community showed up during the trial, at times forced to wait outside the courtroom.
Copyright 2005 Newsday Inc.

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