Harlem sting: Israeli businessmen fall for real-estate scam
Group of 25 Israelis claim they were victims of real-estate sting that cheated them out of millions of dollars
A group of Israeli businessmen wanted to benefit from the great 2000s New York real-estate boom. But like others before them – as they claim in the lawsuit they filed – they were victims of a scam.
Two American businessmen have made promises of great returns for a relatively low investment in a Harlem apartment building. In reality, the entrepreneurs cheated them out of their money.
Surprisingly, the victims of the sting – the details of which were disclosed in legal documents obtained by Yedioth Ahronoth – are some of Israel's leading businessmen, including Jacob Perry, chairman of Mizrahi Tefahot Bank, advertizing mogul Yoram Bauman, producer Shuki Weiss, Israel Diamond Exchange Vice President Shalom Papir, chair of Soglowek Yoram Dar, former Israel Electric Corporation CEO Amos Lasker, and a group of senior OB/GYNs, among whom Prof. Shlomo Mashiach.
A total of 25 Israeli businessmen filed a lawsuit in the US against the entrepreneurs - two businessmen residing in the US and Israel, and the American wife of one of them.
NYC. Real-estate boom. (Photo: AFP)
The plaintiffs claim they were talked into making the investment by the entrepreneurs who, by charging commission from real-estate owners, made the Harlem property appear $6.5 million more expensive than it actually was.
Furthermore, the lawsuit stated that the entrepreneurs made investors believe that they themselves had invested in the property, and in fact failed to report the state of the property after investors had already put their money.
So how is it that a group of the most experienced businessmen in Israel fell victims to such a scheme? According to the lawsuit, which was filed in 2007 and is still ongoing, the Israeli businessmen decided to invest in the property due to personal contacts they built with real-estate entrepreneurs.
Shalom Papir said: "We were deceived. We're all waiting to see how the trial turns out. They haven’t ruled anything yet, but we have a good feeling about this."
Natalie Groisman contributed to this report
