Lev Leviev, Arkady Gaydamak, Berel Lazar – Letter to the Editor

 

LEVIEV’S IMAGE AS NO. ONE PHILANTHROPIST MADE POSSIBLE BY USE OF AFRICA-ISRAEL FUNDS, HAS SERVED HIS PRIVATE FINANCIAL STANDING WHILE CONCURRENTLY DEFRAUDING INVESTORS  – LETTER TO THE EDITOR

We received the following letter to the editor which we are publishing as such. We were asked to kindly protect the author’s anonymity and are so doing. We have made very few edits.

We note that the author’s comments came to us without the source material and we will provide as it becomes available. We do not believe the lack of sources to preclude its publication and we welcome any comments.

LM

 

Dear LM,

I am writing to you as a follow-up to your articles regarding Lev Leviev, 23 Wall Street, Arkady Gaydamak, Africa Israel and the numerous interrelated properties, investments and contributions. I thought you should be aware of the following and would be grateful if you would publish. As a preface to my comments, you have already published information regarding lawsuits between Mr. Gaydamak and Mr. Leviev, which have been and continue to be ongoing. You may or may not know the history of those lawsuits or have access to the truth and accuracy of the occurrences and significant nuances. I write to you as a person with an intimate understanding of those events.

In 2012, in the course of the hearings in front of the High Court of Justice of London, where Gaydamak sued Leviev alleging Leviev fraudulently denied the existence of the Trust Agreement by which Leviev had the obligation of trust towards Gaydamak, the Justice Lord Jeffrey Vos (who is a Jew) said to Leviev at the beginning of the trial that Leviev is widely known in the world as one of the biggest financial contributors to the Jewish communities. He then asked Leviev how much he contributes Jewish causes. Leviev cast down his eyes and replied that, in accordance with the Jewish tradition that he respects, the amount of “tsedaka” should not be proclaimed publicly by the contributor, and then Leviev wrote some figures on a paper and presented it only to the judge’s eyes. Justice Lord Vos was visibly impressed.

There is no doubt that this event, which by no means should normally influence the “discovery of the truth”, nevertheless has influenced the opinion of Justice Vos concerning Leviev.

However, Leviev was not precise, that all his so-called contributions are made by fraud from the account of the public company “Africa-Israel” where Leviev is a major shareholder. The so-called contributions that he widely advertises, are in reality, paid by the shareholders who are mainly pension funds, with the money of the pensioners.

It should be noted in the context of many of your articles, “Africa-Israel” never reimbursed their investments.

Leviev also did was not punctilious to Justice Lord Vos and generally, when he failed to specify that all his so-called contributions are destined specifically for the Federation of the Jewish Communities of FSU where Leviev is a Head and where the so-called spiritual leader is Berel Lazar, who was to be the safeguard of the trust in question is rabbi. In exchange for this financing Berel Lazar blindly supports all frauds of Leviev who, in order to commit his frauds, has built for himself an artificial image of the man who respects the rules of Torah.

The representative of “Africa-Israel” bondholders Dan Avnon stated: “We find it’s unacceptable that “Africa-Israel” which hasn’t been able to repay money to its creditors, is making donations to third parties”.

Then, the public company “Africa-Israel”, in order to cover and justify Leviev’s frauds, issues official statements full of arrogance, such as: “Africa-Israel” sees itself as committed to active involvement in society and the community in which it operates together with its businesses, operations and entrepreneurship. In this spirit, all of “Africa-Israel” subsidiary companies undertake a wide range of community activities in the countries in which they operate, which is expressed among other ways in money donations and voluntary activities”.

This arrogant official statement of the public company “Africa-Israel” is the obvious evidence that Leviev, in order to build his artificial image of one of Judaism’s top philanthropists , is in actuality stealing from the public company and using not his own money but public money to further his own interests.

As in many other similar cases of severe breach by Leviev and “Africa-Israel” of law and regulations imposed upon public companies, the Stock Exchange Regulators are strangely silent.

Thus, in the course of the hearings in the High Court of Justice in London, Leviev, in order to obtain a favourable opinion about himself, lied to Justice Lord Vos concerning Leviev’s so-called contributions to the Jewish community.

 

Famed J.P. Morgan Building at 23 Wall Street in Play – and Urinating Bosses…

23 Wall Street – Our Theories

We have written on the famed J.P. Morgan piece of property more times than perhaps any other Blog. We have written on the various Jona Rechnitz and Jeremy Reichberg properties/investments/shady dealings. We have written about Chetrit and Bistricer, China Sonangol, Queensway, Angola. The story below from “The Real Deal” almost feels like something we could have written. But, of course, we didn’t.

The new buyer, as you will see below from the article on the bottom of the page, Jack Terzi, lacks certain social graces (or did in 2012). He apparently was an abusive boss who, according to reports in the NY Daily News from 2012, engaged in bizarre behavior. In the interest of full disclosure, his employees at his yogurt shops felt that he was “strictly business” and “humble.” Hard to tell.

We can say this:

It would not surprise us if nestled within the many companies listed on the Africa-Israel website with reference to the Israel Stock Exchange we were to find the new J.P. Morgan buyer’s name, his company or some financial/management synergy with Africa Israel and perhaps concurrently with China Sonangol. It will take a while to find and some might write this one off as a leap. We don’t think so.

It is a Buyer’s market not a Seller’s market in Manhattan right now (if the comment about the losses below by The Real Deal is any indication). China Sonangol/Africa-Israel/Sam Pa/ want out of New York but we doubt they would take a financial loss. We think that it will prove to be anything but a loss.

AFI Group The company is traded on the Tel Aviv Stock Exchange. For more information, please press on the image below.

Subsidiaries:

Africa Israel Properties

Africa Israel Residences

Danya Cebus

Africa Israel Industries

Negev Ceramics

Dor Alon

Blue Square

 

 

Paydirt: The Compass unicorn, a more modest buyer pool, 23 Wall in play … & more

Billionaires hiding? We’ll take the millionaires: Compass’ valuation comes at a time when Manhattan’s high-end residential market is taking body blows. Developers finally seem willing to accept things aren’t where they were in 2014. They’re either offering fat discounts (Extell at One Manhattan Square, World Wide Group and Rose Associates at 252 East 57th Street), pushing sales back (JDS & PMG at 111 West 57th Street) or abandoning ship (Witkoff at Park Lane, Chetrit & Bistricer at the Sony Building).  “The next two years will be the year of the deal,” PMG’s Kevin Maloney told Bloomberg.

Developers who set their sights a little more main street have been faring better: Condos priced between $500,000 and $999,000 have sold five times as fast as their $10 million-and-up counterparts, according to a Miller Samuel analysis of a decade of residential sales.

You don’t know Jack: JTRE’s Jack Terzi is in contract to buy 23 Wall Street, a landmarked property that was once the headquarters of J.P. Morgan & Co. – it was dubbed the “House of Morgan” — but of late has been a pox on Lower Manhattan. The long-vacant building is owned by the shadowy China Sonangol, a joint venture between Sam Pa’s Queensway Group and the nation of Angola — go figure. Sources told the New York Post that Terzi will be buying the property at a discount to the $150 million Sonangol paid for it in 2008. That’s hard to fathom, except for the fact that Pa is under investigation for allegations of financial crimes, according to the FT.

Terzi, who grew up in Gravesend and cut his teeth at Hidrock Realty, has made a number of splashy acquisitions of late, including a number of $20 million-plus buys in Midtown East. But this deal, if he does close on it, elevates him to a different level — giving him control of more than 130,000 square feet in the heart of Lower Manhattan.

 

 

THE NEW YORK POST:

http://nypost.com/2016/08/30/long-vacant-wall-street-landmark-sold-to-retail-developer/

 

For a tall tale about how China Sonangol may or may not have come to its original purchase through individuals mixed up in the NYPD scandals, read The Post’s Steve Cuozzo’s story from July 4.

The 160,000 square feet stretches from the landmarked 23 Wall St. where banker Morgan once had his private offices, around the sloped corner to portions of the base floors of 33 Wall and 15 Broad St.

The stone fortress has been touted as a retail play for years, but it’s stood mostly dark — due to absentee ownership and landmark-related restrictions.

Prospective deals to lease it to Brooks Brothers and a multi-media event company fell through but Hermes has been a tenant since 2007.

The upper stories of 15 Broad next door were converted into apartments.

JACK TERZI – NEW YORK DAILY NEWS:

http://www.nydailynews.com/new-york/ex-worker-suing-real-estate-boss-jack-terzi-5-million-abuse-fines-urinating-article-1.1134148

 

Ex-worker suing real estate boss, Jack Terzi, for $5 million for abuse, fines, and urinating

A foul-mouthed boss from hell unzipped more than his lip in torturing his young assistant.

Brash real estate broker Jack Terzi urinated on the underling’s clothes during a three-year reign of terror in their Manhattan office, according to a astonishing new lawsuit.

The allegedly abusive broker was accused by ex-employee Albert Sultan of abuse that included cutting four-letter insults, sharp flying objects and bizarre fines.

Sultan, hired shortly after Terzi launched his company in 2009, “became emotionally distraught, was humiliated and embarrassed … by the systematic and continuous unlawful harassment,” charged the 15-page suit filed Wednesday.

Court papers contain a cruel recital of Terzi’s perverse management style, including the time he “urinated on a garment” belonging to Sultan as others watched.

Terzi was accused of throwing a shoe and a pair of scissors at his young assistant, hurling insults like “f—— idiot” and “piece of s—“ — and repeatedly “sneezing in (Sultan’s) face in a contemptuous fashion.”

Terzi, in a countersuit, charged Sultan was a conniving backstabber who launched his own business with confidential information stolen from Jack Terzi Real Estate.

Sultan, of Eatontown, N.J., declined further discussion about his ex-boss.

 

 

Platinum Partners – The Money is No Doubt Hidden – Start Digging…

 

THE NEW YORK POST:

Embattled hedge fund tied to prison guard union under new management

By Kaja Whitehouse

September 1, 2016 | 10:52pm

 

Murray Huberfeld, founder of Platinum Partners Photo: Reuters

More On:

platinum partners

Hedge fund linked to prison guards’ union goes to ‘liquidators’

Hedge fund linked to kickback scandal loses a client

Hedge fund tied to kickback probe used ‘checkered’ valuation firm

Feds probing union scandal fund as a Ponzi scheme

Troubled hedge fund Platinum Partners — which is holding $20 million in pension money for the city’s prison-guards union — is officially under new management, The Post has learned.

A Cayman Islands judge has ordered that liquidation firm RHSW Caribbean take control of Platinum’s flagship fund amid concerns about its ability to repay investors, according to a letter to investors obtained by The Post.

The new managers said they plan to meet with Platinum’s investors, including the Correction Officers Benevolent Association, on Sept. 28.

Ex-COBA president Norman Seabrook invested members’ pension money in Platinum, as well as the union’s operational funds.

Investors have been clamoring for answers following the June arrest of Platinum co-founder Murray Huberfeld, who was charged with paying bribes to get his hands on COBA’s money from Seabrook, who has also been charged in the alleged scheme.

In July, Platinum’s New York ­offices were raided by the FBI.

TO READ THE ARTICLE IN ITS ENTIRETY CLICK HERE.

AG Settlement – Boymelgreen, Leviev… Where’s the Authenticity, Schneiderman?

 In 2014, THE REAL DEAL reported on the investigation which had been launched by AG Eric Schneiderman into the partners’ Boymelgreen and Leviev’s luxury real estate business. Schneiderman’s focus at the time was 20 Pine Street and 15 Broad Street. The Broad Street location is only steps from 23 Wall Street, The JPMorgan building, a location which we view as far more important in the architectural structure that supports if not fosters corruption in New York and elsewhere.

In 2014 Schneiderman sought to enjoin Boymelgreen from doing business in New York until it could be determined whether Boymelgreen’s son, Sam, was acting as a frontman for his father’s business.

Today, it was reported that Boymelgreen will be “banned” from selling condos in New York. The humor in the settlement can be found in son – Sam, mentioned in THE REAL DEAL article in 2014. Is he not still to be a “front” and center concern in the family business?

We don’t hear much about Sam Boymelgreen but we do know that he is not precluded from doing business in New York. Why was he not included in the settlement? Or, did we miss something?

Certainly AG Schneiderman had to have considered in 2016 what was unsettling in 2014, that when father and son are engaged in the same business, a ban is not really a ban it is an invitation to switch heads of state. Or… rather… heads of family businesses.

We have posted the New York Times article regarding the audacious 2-year ban settlement for papa Boymelgreen. Below that, we have posted the article from THE REAL DEAL in 2014.

We repeat and reiterate, little has changed. Except perhaps, that while we have followed the news and learned that one must be wary of Boymelgreen, Leviev and others; Schneiderman has missed the current events page in his syllabus. He seems to think that a 2-year ban has meaning. It does not.

And then there’s the Broad Street/Wall Street, Arcady Gaydamak  Sam Pa, Platinum Partners, Leviev, Panama Papers connections…

 

FROM THE NEW YORK TIMES:

New York Attorney General Settles Inquiry Into Once-Successful Developer

DIAMOND JOE GUTNICK A FRAUD? Our Opinion…The Money is in Hiding…

Joseph Gutnick’s brother labels fallen millionaire a fraud

Shannon Deery, Herald Sun
August 25, 2016 3:34pm
Subscriber only

THE brother of Joseph Gutnick has dubbed the fallen millionaire a fraud claiming he sold a home from under him despite it meaning he and his family could be left homeless.

Now the brothers could be forced to face off in the Supreme Court as developers desperately try to have Abraham Gutnick evicted from his home of 14 years.

MORE: GUTNICK IN COURT ACTION TO REMOVE BROTHER FROM HOME

Joseph and Abraham Gutnick are at war over the sale of the St Kilda East property the former Demons president off-loaded as he faced bankruptcy.

Abraham says the brothers had an agreement dating to 2002 that the house was his in exchange for a Bondi property he says was left to him by their dad Chaim.

But on paper the house stayed linked to Joseph who paid all rent, utilities, rates and associated outgoings.
Abraham Gutnick leaves the Supreme Court. Picture: Jake Nowakowski
The Supreme Court heard today that when selling the property to developers, they were forced to sign a side agreement keeping the deal secret.

Abraham lives in the home with his wife, five children, and 88-year-old mother-in-law.

“We allege fraud against Joseph Gutnick,” his lawyer Kristine Hanscombe QC said today.

“Joseph Gutnick sells his property out from under his brother in a deceitful way.”

Abraham wants to appeal a Victorian Civil and Administrative Tribunal decision handing possession of the property to the developers that bought the home.

The matter is due to go to trial in the Supreme Court where evidence about the alleged agreement is expected to be heard.

Mr Gutnick, who was once worth $300 million, filed for bankruptcy last month.

 

TO READ THE ARTICLE IN ITS ENTIRETY, PLEASE SUBSCRIBE TO THE HERALD SUN.

Platinum – If the Lawyers Get it Right, they Will look to Huberfeld and Bodner…

Appointment of Cayman liquidator adds pressure on Platinum Partners

By Lawrence Delevingne | NEW YORK
(Reuters) – A Cayman Islands court ordered that an outside expert help unwind a hedge fund managed by Platinum Partners, a New York-based firm facing dual investigations by U.S. regulators.

A local judge on Tuesday appointed insolvency specialist RHSW Caribbean as “joint official liquidators” of the Cayman-based Platinum Partners Value Arbitrage Fund (International) Limited, the so-called offshore version of Platinum’s flagship hedge fund offering, RHSW said in an email to Reuters.

RHSW will work with Bart Schwartz of Guidepost Solutions, who Platinum hired in July to assist with liquidating their main hedge funds and reporting to the U.S. Securities and Exchange Commission, which is investigating the firm along with the Department of Justice.

A spokesman for Platinum, which managed about $1.35 billion as of April, declined to comment.

The news underscores the mounting pressure on Platinum, which produced stellar returns since launching in 2003 but has been under significant scrutiny this year following criminal charges against longtime associate Murray Huberfeld that he bribed a union official in exchange for an investment in Platinum. Huberfeld recently pleaded not guilty.

Matthew Wright of RHSW told Reuters in an email that the firm was working with Guidepost to “manage the process of identifying, securing and protecting the assets of the Fund for the benefit of its stakeholders.”

RHSW, which did not provide a timeline, added that it will attempt to keep “all stakeholders informed of the progress of the liquidation” and that “any concerned stakeholders should feel free to contact us.”

The Cayman order came after a Platinum client, New Zealand’s Parris Investments, filed a complaint saying that the hedge fund manager had not returned their money as promised. The news was first reported by the New York Post.

Separately, at least four law firms have been attempting to gather Platinum clients for potential litigation, according to public announcements.

Landlord Boston Properties has quietly starting shopping Platinum’s more than 23,000 square feet of midtown Manhattan office space in anticipation that the firm will soon leave the space and break its lease, according to a person familiar with the situation who requested anonymity because the information is private.

To see the article in its entirety at Reuters click here.

Platinum Fund Gone to Liquidators – Will They Go After The Bodner and Huberfeld Foundations???

Hedge Fund Linked to prison guards’ union goes to Liquidators

Here’s yet another reason the city corrections officers’ union should be concerned about the $20 million it invested in troubled hedge fund Platinum Partners.

On Tuesday, a Cayman Islands judge ordered that the international unit of Platinum’s flagship fund be handed over to court-appointed “liquidators” amid serious new concerns about its ability to repay investors, The Post has learned.

Judge Andrew Jones of the Cayman Islands, where Platinum’s flagship fund is based, appointed liquidators from corporate restructuring firm RHSW Caribbean to unwind the flagship fund’s “international” unit after an investor complained that it asked for its money back last year and got zilch.

The RHSW liquidators are expected to ultimately seek control of Platinum’s “master” fund, where the Corrections Officers’ Benevolent Association $20 million was invested, sources said. The union pot includes pension and operating funds.

A spokesman for Platinum declined comment.

Platinum’s woes seemingly started in June when ex-COBA President Norman Seabook was arrested along with Platinum co-founder Murray Huberfeld.

Manhattan federal prosecutors say Seabrook gave Huberfeld COBA’s money to invest in exchange for cut of any profits. Huberfeld’s first payment to Seabrook came in the form of $60,000 stuffed in a black Ferragamo “murse,” or man purse, prosecutors said.

Weeks later, the New York FBI, acting on behalf of Brooklyn federal prosecutors, raided Platinum’s New York offices. That prompted the hedge fund, which claims to manage about $1.35 billion, to announce plans to shutter its funds and return investors’ money.

But the Cayman Island’s court filing suggests Platinum was having trouble repaying investors well before the FBI and Manhattan federal prosecutors swooped in.

New Zealand’s Parris Investments Ltd, an investment entity, told the court it asked for its money back in October and was supposed to be paid in December, according to court documents reviewed by The Post.

Instead, Platinum kept pushing back payment on the investment, estimated to be worth $1 million, Parris told the judge. In early February, Platinum told Parris the money would imminent. A few weeks later, it pushed the deadline back to the April-June period, Parris said.

Parris filed its complaint in July.

Acting COBA President Elias Husamudeen has sought to reassure the union’s 9,000 members, who work on Rikers Island and other city prisons, that their investment is safe.

But persistent questions about the status of COBA’s $20 million have led to repeated clashes between COBA members and the executive board, some of whom approved the investment.

To read the article in its entirety click here.