Boruch Drillman’s troubles have gone from bad to worse.
Awaiting sentencing in a $165 million mortgage fraud scandal and facing eviction from his waterfront Bal Harbour home, the investor has been ruled to owe $2.1 million in another dispute.
A company tied to Arie Harel alleged Drillman failed to pay off a $1.5 million promissory note in April 2023. After the default, Harel’s company extended the loan 75 days. In exchange, Drillman’s company pledged its interests in two Florida companies, Alliance Rapid Testing Lab and Number One Lab, giving Harel’s firm a lien on the companies.
But Drillman defaulted again. Alliance DX sued Drillman in July 2023 for the principal plus interest. And almost a year and half later, a Miami-Dade County judge issued the judgment against him.
Harel did not have an easy time pursuing Drillman. Alliance DX sought sanctions against Drillman’s attorney, pointing to “interruptions, speaking objections, and witness coaching” during Drillman’s deposition.
At the deposition, Drillman kept pressing for smoke breaks.
“If you don’t allow me to smoke, I am going to need more breaks because I am an addicted smoker but there are going to be more breaks that I will be requesting simply because I’m going to need to take a cigarette,” said Drillman. “I have a smoking addiction.”
Drillman was the first to plead guilty in a sprawling investigation by the Department of Justice into commercial mortgage fraud. He and his co-conspirators allegedly used fake documents to inflate property values and secure larger loans from lenders and Fannie Mae than they otherwise would have received.
But Drillman’s plea deal with the Department of Justice did not end his legal problems. An Ohio court recommended in May that Drillman and his ownership group at a Columbus, Ohio, apartment complex pay $20 million for violating the state’s asbestos laws, according to the Columbus Dispatch.
He is also facing an eviction for chain smoking cigarettes at a $10,500-a-month condo in Bal Harbour. Drillman’s neighbor alleged the tobacco smell filled an entire hallway.
Drillman did not return a request for comment.
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