An Israeli man was charged in the US for defrauding investors, primarily Orthodox Jews, of a total sum of what appears to be at least $47 million. He then allegedly fleed to Israel in 2021.
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The indictment from earlier in January filed by the US Securities and Exchange Commission says the Israeli man manipulated would-be investors from Orthodox Jewish communities in Los Angeles and New Jersey.
The investors had been looking for security camera equipment and wanted to invest in real estate in Israel, said the indictment.
The suspect also told investors their funds would go toward purchasing property in Israel, which would then be renovated and sold for profit, resulting in some 30 people being duped, mainly in the Orthodox Jewish community across the US.
According to the indictment, the suspect "misappropriated the funds by spending investor money for his personal benefit and making Ponzi-like payments to earlier investors in an attempt to keep the scheme going." He allegeldy used the money to fund a luxurious lifestyle, spending $56,880 at casinos and flying on private jets at least twice.
The SEC said it had cooperated with the Israel Securities Authority on the case.
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