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

Lawsuit says Yoel Goldman transferred $3.7M worth of funds from All Year account to different account that he controls

TRD New York /
Jan.January 22, 2019 01:48 PM

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.

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.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Mack Real Estate Group's Richard Mack and JPMorgan's Jamie Dimon with a rendering of 123 Melrose Street (Credit: Getty Images and ODA Architecture)

Yoel Goldman sews up long-term funds for Rheingold Brewery Project

Yoel Goldman sews up long-term funds for Rheingold Brewery Project
Photo illustration of Judge Eric Komitee (iStock)

Rent law challenge dismissed; battle may go to higher court

Rent law challenge dismissed; battle may go to higher court
Real estate crowdfunding guru Grant Cardone misled investors, lawsuit charges

Real estate crowdfunding guru Grant Cardone misled investors, lawsuit charges

Real estate crowdfunding guru Grant Cardone misled investors, lawsuit charges
(iStock)

ACLU accuses Missouri courts of violating federal eviction ban

ACLU accuses Missouri courts of violating federal eviction ban
445 Fifth Avenue and Harbor Group's Jordan Slone (Google Maps)

Harbor Group sued after defaulting on $40M loan at Midtown retail space

Harbor Group sued after defaulting on $40M loan at Midtown retail space
A rendering of 121 Morgan Avenue in Bushwick and Benefit Street Partners’ managing director Micah Goodman (Photos via EXR; Benefit Street Partners)

Brooklyn developer duo hit with foreclosure lawsuit

Brooklyn developer duo hit with foreclosure lawsuit
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...