Israel (age 34), Leah (age 32), Michal (age 9) and Yael (age 8) in 1985.
Israel Greenwald was the picture of devotion — a kind, hardworking Orthodox Jew, a loving husband, and a proud father of two little girls. In Far Rockaway, New York, he built an honest life through grit and determination, founding Blue River Inc., a jewelry business respected by everyone who knew him.
In 1985, a fellow Hasidic jeweler — we’ll call him “HT” — asked Israel for a simple favor: deposit a bond in Europe during one of his frequent business trips. Israel agreed, never imagining the danger he was stepping into. The bond was stolen. When Israel returned to the U.S., he was stopped by the FBI at customs. Questioned, he told them the truth: it wasn’t his — a friend had given it to him.
The FBI wasn’t satisfied. They demanded he secretly record “HT” confessing to the crime. Israel, furious at being duped, confronted his friend, begging him to tell the truth and put an end to the nightmare. But “HT,” terrified, refused — hinting that bigger, more dangerous forces were behind it all. A secret tape was made, but something went wrong. Did “HT” discover it? Was the tape sabotaged? The answers remain a mystery.
Israel had no idea the forces he had stumbled into. “HT” was connected to Banda, a Hasid involved in a massive Treasury bond scam, run by none other than Burt Kaplan — a notorious criminal mastermind.
When Kaplan heard Israel might cooperate with the Feds, he made a swift, brutal decision: Israel had to be silenced.
Kaplan reached out to Frank Santora, an old prison contact, who knew just the men for the job — NYPD detectives Louis Eppolito and Stephen Caracappa, later known as the “Mafia Cops.” Using their police badges and access to confidential databases, they hunted down Israel’s every detail: address, car, daily routine.
The trap was set.
On the morning of February 10, 1986, as Israel drove to work, they pulled him over, flashing their badges and accusing him of involvement in a hit-and-run. Trusting the men he thought were real officers, Israel got into their car — unaware he was being driven to his death.
They brought him to a dusty Brooklyn garage on Nostrand Avenue owned by an innocent man, Pete Franzone. According to Franzone’s later testimony, he saw them walk in with a Jewish man wearing a yarmulke. Twenty minutes later, only the cops emerged. When Santora called him inside, Pete found Israel’s lifeless body. Santora threatened him: help bury the body, or join him in the grave.
Terrified, Franzone dug the hole. And for 19 years, he kept the secret, living with the horror of what he had witnessed.
Meanwhile, Israel’s family was left in a nightmare — no body, no answers, no closure. Rumors swirled. Some whispered he had abandoned his family. Others imagined darker theories. They had no way of knowing he had been murdered by men sworn to protect.
In 2005, the dam finally broke. Burt Kaplan turned informant, confessing he had paid $30,000 to have a “Jewish jeweler” killed. But Kaplan didn’t know Israel’s name, nor exactly where the body lay — only that it happened somewhere along Brooklyn’s endless Nostrand Avenue.
Detectives, refusing to let the case go cold, unearthed a crucial clue: Frank Santora’s old homicide file, and inside it, a forgotten phonebook — with Pete Franzone’s towing company number. When confronted, Franzone led them to the hidden grave.
Israel Greenwald’s body was finally recovered. After 19 agonizing years, he was laid to rest in Israel.
Justice came one year later. In April 2006, Louis Eppolito and Stephen Caracappa were convicted not only of Israel’s murder but of seven others. They were sentenced to life in prison, where they both eventually died — their badges and their honor long since rotted away.
(*Chillingly, Kaplan later ordered the cops to kill “HT” too. When Eppolito and Caracappa cornered him in a Williamsburg stairwell, “HT” sensed the trap. With a desperate shove, he sent the much larger Eppolito stumbling down the stairs and fled screaming for help. His instincts saved his life — and years later, his survival added yet another charge to the Mafia Cops’ long list of crimes.)
MORE ABOUT ISRAEL GREENWALD
by Michal Greenwald (Eldest Daughter)
Although he lived just 34 short years, Israel Greenwald left behind a lifetime of impact. To me, he was “Abba” — Daddy — and he was our whole world. I wanted to share a little about the man my father was and the life he lived.
Israel was born in Israel to Hungarian Holocaust survivors who had each lost families in the war. His birth was a symbol of hope — he was named after his grandfather who perished in the camps. Deeply devoted to his parents, Israel would later fly across the world at a moment’s notice just to fix something as small as an air conditioner for them.
Raised in the Orthodox Jewish tradition, Israel was a brilliant student and a natural leader. His heart was just as big as his mind: as a teenager, he founded an organization that offered interest-free loans to people in need, ensuring that one act of kindness could ripple out to many.
Israel dreamed of being his own boss. Forgoing university, he studied at Chevron Yeshiva and, in his early twenties, opened the first pizza shop in ultra-Orthodox Bnei Brak — a bold and controversial move at the time. Despite community skepticism, the store thrived and paved the way for dozens more that followed.
At 21, Israel met and married Leah. They were a young, beautiful couple, full of hope. After the birth of their first child, Michal, they moved briefly to South Africa to learn the diamond trade, then headed to America, where their second daughter, Yael, was born. Israel founded Blue River Enterprises, a jewelry business that quickly flourished thanks to his charisma, trustworthiness, and ambition. He also ventured into real estate and other projects, always eager to build a better life for his family.
Even as his success grew, Israel remained deeply religious and humble. He prayed three times a day, never missed a Sabbath at home, and generously supported countless individuals and charities — often quietly, never seeking recognition. To him, giving wasn’t charity; it was a responsibility.
Israel’s love of animals remained: the family home bustled with pets — even, at one point, a pet monkey. He was warm, responsible, and deeply organized, making sure his family was always cared for no matter what.
In the 1980s, Israel’s business led him to diplomatic ties with Liberia. Trusted and respected, he tragically became entangled when a friend asked him to unknowingly transfer a fraudulent bond. When the authorities demanded he secretly record his friend, Israel was torn — loyal but also desperate to protect his family. He even considered moving back to Israel to escape the impossible situation. He never imagined it would cost him his life.
In 1986, Israel was murdered at the orders of Burt Kaplan, who feared Israel might expose his criminal network. Kaplan hired two NYPD officers — later infamous as the “Mafia Cops” — to carry out the killing.
Israel’s body wasn’t found for 19 years. During that agonizing time, his family was left in financial ruin, unable to collect insurance, preyed upon by opportunists, and tormented by rumors. Only when Kaplan finally turned informant did the truth emerge, bringing long-overdue closure and justice: Eppolito and Caracappa were convicted and sentenced to life in prison, where they eventually died.
Israel’s loss devastated our family, but his legacy — of kindness, courage, and faith — continues to shine. His short life was nothing less than extraordinary.