All Year Management Bondholders, Allegations of Misappropriations of Funds

Bondholders accuse Yoel Goldman’s All Year Management of breaching securities law in suit

A view of Denizen Bushwick at 54 Noll Street (Credit: Denizen Bushwick and Pixabay)

Yoel Goldman’s Israeli bondholders are alleging he misappropriated company funds, which they say caused their bonds to lose value, according to a lawsuit filed in Israel.

The suit accuses Goldman of putting $3.7 million worth of funds that should have gone to his company All Year Management into different company accounts that he controls.

The Israel Securities Agency — Israel’s equivalent of the Securities and Exchange Committee — had required All Year to correct financial statements with the Tel Aviv Stock Exchange earlier this month over this. The firm filed a notice concerning a “material error” in its second and third quarter financial statements linked to $3.7 million that was moved to Goldman’s personal account from the company’s account by mistake.

The value of All Year’s bonds fell sharply after Goldman acknowledged this, according to the lawsuit.

All Year did not respond to requests for comment. Commercial Observer first reported news of the suit.

The company’s bonds were downgraded on the TASE at the end of 2018 following steep declines in their value.

Other American firms have recently had issues on the TASE as well. Allen Gross’ GFI Capital Resources made hundreds of changes to its year-end report from 2017, including dropping its 2015 net operating income from $28 million to $8 million, and Boaz Gilad’s Brookland Capital announced in November that it would not meet its upcoming debt obligations. The firm’s Israeli bondholders moved to appoint someone else to oversee its BVI holding company soon after.

To read the article in its entirety click here.

 

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Yoel Goldman and All Year – Allegations of Securities’ Law Breaches in Israel

Here’s Why Yoel Goldman’s All Year Has Run Into a Buzzsaw on the Israeli Bond Market

 

Why has Yoel Goldman’s All Year Management taken such a beating on the Tel Aviv Stock Exchange?

Over the last two months, the largely veiled Brooklyn-based developer has seen the bonds that he issued in Israel downgraded; investors have begun shorting All Year; and the company has come under the spotlight from Israeli regulators.

It all started after the company revealed a $3.7 million error in November 2018, triggering a weeks-long decline in their bonds on the Tel Aviv Stock Exchange (TASE), and heightened scrutiny from investors and regulators. As of last Friday, All Year’s four bond series had fallen between 6 and 23 percent since the beginning of 2019.

In the wake of that revelation more questions were raised, among them All Year’s practice of reporting income from developments that have not been fully leased yet, which have spooked Israeli bondholders, who have bankrolled much of Goldman’s empire, according to discussions with several investors and other stakeholders familiar with the Israeli market.

On Jan. 15, a group of bondholders filed a class-action lawsuit against All Year in a Tel Aviv court, arguing that the company had breached securities laws by failing to disclose certain details about the $3.7 million transfer, and claiming damages of at least NIS $2.5 million, or $680,000, according to the complaint.

All Year’s troubles come amid a tumultuous period on the Tel Aviv bond market that began in November, and all of the American companies who raised money in Israel were affected. Companies like GFI Real Estate, Starwood Capital, Spencer Equity and Delshah Capital have been trading at double-digit yields since December, and an index that tracks primarily American companies on the TASE fell by 3 percent since the beginning of 2019.

“All Year was one of the triggers that sent the market down, because that’s what made people realize that the corporate governance was lacking,” said one finance lawyer who works with foreign bond companies in Israel.

In the beginning….

Four years ago, Goldman, then a rental landlord and budding developer, made his first pitch to the Israeli bond market. He came to the Tel Aviv with a portfolio of mostly Brooklyn rental properties worth roughly $450 million in assets, according to public documents from All Year.

Goldman’s offer was perfectly timed to the height of the real estate frenzy in Brooklyn. Prices in the borough had risen astronomically in a decade and were continuing to climb at an astonishing pace. Everyone wanted to get in on the ‘next Williamsburg’ before it became the ‘new Williamsburg.’

Goldman was well-positioned to capitalize on the market because of his history in the borough, and when the option to issue debt in Israel opened up, he seized it. Since his first bond offer in 2015, Goldman’s All Year has nearly quintupled, with assets totaling $2.2 billion, according to the company’s latest financial statements, and he has become one of the more high-profile developers in Brooklyn. His projects include The William Vale hotel and The Azure at 436 Albee Square, which he developed with partners, 1040 Dean in Crown Heights and a massive, two-phase rental complex in Bushwick named Denizen, at 54 Noll Street and 123 Melrose Street, which is still under development.

A large portion of that development activity is funded by debt raised in Israel. Since 2015, Goldman has raised roughly $650 million in five bond series, issued by a corporate entity called All Year Holdings, which is incorporated in the British Virgin Islands, and owns a portfolio of over 150 properties. Two of All Year’s bonds are secured by properties in Brooklyn, and all of them are backed by the corporate entity.

“When he came to Israel he was a small player,” one investment executive said about Goldman. “The Israeli bonds made him an empire.”

Then All Year’s uninterrupted gold streak floundered.

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Platinum Receivership Information

 

SECURITIES & EXCHANGE COMMISSION V. PLATINUM MANAGEMENT (NY) LLC, ET AL.

Platinum Receivership


AUGUST 15, 2018 WEBINAR VIDEO – Investor & Creditor Forum

July 23, 2018

VIA WEB POSTING

TO:
FROM:
RE:
Platinum Partners Investors and Creditors
Melanie L. Cyganowski, as Receiver
Investor & Creditor Forum

I am pleased to announce that I will hold a virtual forum for Platinum Partners Investors and Creditors on August 15, 2018 from 12:00 P.M. to 1:00 P.M. Eastern. During the forum, I plan to provide an update on the Receivership, including the steps I have taken since the last forum and our plans moving forward. There will also be time for questions.

Instructions for registering and participating in the forum by computer or telephone are provided below. If you would like to submit questions in advance, or have any questions regarding the forum, please direct them to platinumreceiver@otterbourg.com. Those participating by computer will be able to submit questions during the event using the computer service, but those participating by phone will be on mute and will need to send questions through the platinumreceiver@otterbourg.com email address. Finally, please note that we will utilize a court reporter, as well as video, to record the session. Thank you and I look forward to speaking with you soon.
Sincerely,

Melanie L. Cyganowski
Receiver

You are invited to a Platinum Receivership webinar.
When: August 15, 2018 12:00 PM (Eastern Time – US and Canada)

Topic: Investor & Creditor Forum

BY COMPUTER:

Please click the link below to join the webinar:
https://zoom.us/j/995380643

Please note: You must first download “Zoom” webinar software. Simply google “zoom.us” to download this free software.

OR IPHONE ONE-TAP:

+16699006833,,995380643# -OR- +16468769923,,995380643#

OR TELEPHONE:

Dial(for higher quality, dial a number based on your current location):
US: +1 669 900 6833 -OR- +1 646 876 9923

Webinar ID: 995 380 643

International numbers available: https://zoom.us/u/eBFnaDFpk

NOTICE OF ELECTRONIC SYSTEMS SECURITY INCIDENT

The Receiver is in the process of directly notifying certain individuals whose personal information may have been exposed as a result of a recent security incident involving a single email account on a cloud-based service used by Platinum. Specifically, Platinum recently identified suspicious computer-related activity and as a result, the Receiver immediately engaged LMG Security, a leading independent cybersecurity firm, which has been working to further secure Platinum’s systems, as well as conducting a comprehensive forensic review to determine the scope of the incident, including the specific data which may have been impacted.

Based on the investigation thus far, there was limited unauthorized access to a single email account on a cloud-based service used by Platinum from March 19, 2018 to May 19, 2018. Platinum is not aware of any impact on Platinum’s bank accounts or other assets as a result of this incident, nor is Platinum aware of any attempt to misuse any individual personal information which may have been exposed as a result of this incident.

In addition to its forensic analysis, LMG Security and Platinum took steps to minimize and prevent any additional unauthorized access to Platinum’s electronic systems or data. LMG Security’s findings have been reported to law enforcement and the Receiver’s team and professionals continue to work with the appropriate authorities.

While there is no evidence to suggest that there has been any attempt to misuse any of the personal information which may have been contained in the impacted data, those individuals who may have been directly affected by this incident have, or will receive, individual letters apprising them of the incident and informing them of the services which the Receiver is providing to them in an abundance of caution. Specifically, the Receiver, working with the cyber response team at Garden City Group, has established a call center to respond to inquiries by those individuals receiving letters from the Receiver, and is offering complimentary identify theft protection services through ID Experts®. This service includes 12 months of credit monitoring, a $1,000,000 insurance reimbursement policy, and fully managed id theft recovery services. With this protection, MyIDCare will help affected individuals resolve issues if their identity is compromised.

If you would like further information regarding the foregoing, please call (888) 866-5172.


JUNE 6, 2018 WEBINAR VIDEO – Investor & Creditor Forum

May 15, 2018

VIA WEB POSTING

TO:
FROM:
RE:
Platinum Partners Investors and Creditors
Melanie L. Cyganowski, as Receiver
Investor & Creditor Forum

I am pleased to announce that I will hold a virtual forum for Platinum Partners Investors and Creditors on June 6, 2018 from 12:00 P.M. to 1:00 P.M. Eastern. During the forum, I plan to provide an update on the Receivership, including the steps I have taken since the last forum and our plans moving forward. There will also be time for questions.

Instructions for registering and participating in the forum by computer or telephone are provided below. If you would like to submit questions in advance, or have any questions regarding the forum, please direct them to platinumreceiver@otterbourg.com. Those participating by computer will be able to submit questions during the event using the computer service, but those participating by phone will be on mute and will need to send questions through the platinumreceiver@otterbourg.com email address. Finally, please note that we will utilize a court reporter, as well as video, to record the session. Thank you and I look forward to speaking with you soon.
Sincerely,

Melanie L. Cyganowski
Receiver

You are invited to a Platinum Receivership webinar.
When: June 6, 2018 12:00 PM (Eastern Time – US and Canada)

Topic: Investor & Creditor Forum

BY COMPUTER:

Please click the link below to join the webinar:
https://zoom.us/j/995380643

Please note: You must first download “Zoom” webinar software. Simply google “zoom.us” to download this free software.

OR IPHONE ONE-TAP:

+16699006833,,995380643# -OR- +16468769923,,995380643#

OR TELEPHONE:

Dial(for higher quality, dial a number based on your current location):
US: +1 669 900 6833 -OR- +1 646 876 9923

Webinar ID: 995 380 643

International numbers available: https://zoom.us/u/eBFnaDFpk

DECEMBER 20, 2017 WEBINAR VIDEO – Investor & Creditor Forum

MELANIE L. CYGANOWSKI, RECEIVER c/o Otterbourg P.C. 230 Park Avenue, 30th Floor New York, NY 10169 E-mail: platinumreceiver@otterbourg.com Website: www.PlatinumReceivership.com

MARCH 1, 2018 WEBINAR VIDEO – Investor & Creditor Forum

Letter to Redress Bond – A Platinum Idea – Mark Nordlicht and More

MarkNordlicht

THE PLATINUM PARTNER AND THE FEE FOR HIS FREEDOM – BUT WHAT ABOUT THE VICTIMS?

Mark Nordlicht has apparently written a letter to the court asking for a reduction in Bond. We cannot publish the letter here because it is available on the PACER site for a fee. We have provided the links since August 6th. You will likely need to pay a fee to view the documents.
369
08/06/2018
Letter in Further Opposition to Defendant Mark Nordlicht’s Application to Travel as to Mark Nordlicht
370
08/07/2018
Letter in Response to Government’s Opposition as to Mark Nordlicht
372
08/08/2018
Letter by the government, dated August 8, 2018, requesting that the Court schedule a status conference regarding the defendant Mark Nordlicht’s bond and his travel to Israel as to Mark Nordlicht
08/09/2018
SCHEDULING ORDER as to Mark Nordlicht re 372 Letter. Status Conference set for 8/10/2018 at 9:45 AM in Courtroom 8D South. Ordered by Judge Brian M. Cogan on 8/9/2018. (Text entry; no document attached.)
373
08/09/2018
Letter Request to Appear Telephonically at August 10th Status Hearing as to Mark Nordlicht
08/09/2018
ORDER as to Mark Nordlicht re 373 Letter requesting to appear by telephone. Application Granted. Defense counsel shall call chambers at 718-613-2230 at the scheduled time. Ordered by Judge Brian M. Cogan on 8/9/2018. (Text entry; no document attached.)
374
08/09/2018
Letter Response to Government’s August 9th Request for Status Hearing as to Mark Nordlicht
08/10/2018
Minute Entry for Status Conference as to Mark Nordlicht held on 8/10/2018 before Judge Brian M. Cogan. AUSAs Lauren Elbert and Patrick Hein. Defense Counsel: Lisabeth Fryer and Ronald Sullivan by telephone. Counsel waives their client’s appearance for reasons stated on the record. (Court Reporter Sophie Nolan.) (Text entry; no document attached.)
378
08/16/2018
Letter Notice of Hearing on Government’s Motion to Readdress Bond as to Mark Nordlicht
08/16/2018
SCHEDULING ORDER as to Mark Nordlicht re 378 Letter. Hearing on Government’s Motion to Readdress Bond set for 8/23/2018 at 4:30 PM in Courtroom 8D South. Ordered by Judge Brian M. Cogan on 8/16/2018. (Text entry; no document attached.)