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.
All Year has been a particularly active developer in Brooklyn in recent years. The firm developed Denizen, a 911-unit complex with more than 100,000 square feet of retail space at the former Rheingold Brewery site in Bushwick. It’s also working on a project in Greenpoint at 22 and 26 Clay Street that would span 244,000 square feet with 325 units.