Apr.14, 2010, 6:06PM

Two New York men arrested in last year’s massive FBI sting pleaded guilty in federal court in Trenton today, saying they supplied cash to a money-laundering operation allegedly run by a Monmouth County rabbi.

The guilty pleas by Yeshaye Ehrental, 66, and Schmuel Cohen, 25, marked two of the first significant developments on the money-laundering end of the sprawling investigation that led to charges against rabbis, mayors and state legislators.

In separate hearings before U.S. District Judge Joel A. Pisano, Ehrental and Cohen said they illegally supplied hundreds of thousands of dollars to Rabbi Eliahu Ben Haim, who is accused of using religious charities to launder $1.5 million for a government informant, according to U.S. Attorney Paul J. Fishman.

Ben Haim’s lawyer, Lawrence S. Lustberg, declined to comment today. During a bail hearing last month, the attorney indicated that the rabbi may also plead guilty, saying he had been engaging in "constructive" negotiations with prosecutors.

Ben Haim was among five rabbis charged in the epic sting. The probe hinged on Solomon Dwek, a former rabbinical student from the borough of Deal who began secretly recording conversations for prosecutors after being charged with bank fraud in 2006. His work ensnared 46 people, including politicians charged with taking bribes and rabbis accused of laundering money.

Ehrental and Cohen, an Israeli citizen, are the 15th and 16th people to plead guilty in the case. One defendant, former Jersey City Deputy mayor Leona Beldini, was convicted.

During today’s hearings, Ehrental and Cohen said they worked a contact in Israel to supply Ben Haim with cash, which authorities say the rabbi used to launder checks for Dwek. In some cases, the informant claimed he needed to hide the money from a bankruptcy proceeding. Others times, Dwek said the checks came from criminal schemes, including the sale of knock-off Gucci and Prada handbags.

Ben Haim allegedly deposited Dwek’s checks into the accounts of his charity organizations. Then, authorities say, the rabbi wired the money to a man in Israel. He took 1.5 percent, then wired the rest to accomplices in New York, including Ehrental and Cohen, who funneled it back to back to Ben Haim and Dwek, authorities said.

Ehrental, whose office desk was allegedly stuffed with $100 and $20 bills, said he gave between $200,000 and $400,000 in cash to Ben Haim. Cohen said he passed along between $400,000 and $1 million, on one occasion stuffing cash into a Cinnabon Crunch cereal box before handing it to Dwek, authorities said.

Ehrental and Cohen pleaded guilty to operating unlicensed money transmitting businesses. Under the terms of his plea agreement, Ehrental faces between 12 and 18 months in prison, assistant U.S. Attorney Maureen Nakly said. Cohen faces 18 to 24 months, Nakly said. They are scheduled to be sentenced July 26.