A lawsuit filed final weekend by Advs. Roy Blecher, Man Zeevi and Moshe Pekarevits from Krispin Rubinstein Blecher & Co. reveals an intriguingly dramatic crime, that includes a minimum of 5 Israeli legal professionals.
The lawsuit describes a case involving large-scale fraud, refined and systematic embezzlement and theft, by which Advs. Man Yuval and Uri Arad allegedly took benefit of their shopper, who was himself making an attempt to flee from the European authorized authorities, in a case by which he was suspected of allegedly swindling buyers.
Based on the shopper, whereas he was on the run, his legal professionals stole large sums of cash from him, within the type of bitcoin. 2,300 bitcoins price about €105 million have been allegedly stolen. This case entails three different legal professionals who labored with Advs. Yuval and Arad and a dealer named Miki Hefetz, who was allegedly a accomplice within the conspiracy.
The plaintiff is Jack Henry Wygodski, a rich Israeli and Belgian citizen, who has remained beneath the radar of the Israeli media.
Wygodski entered into an settlement with Hefetz and Advs. Yuval and Arad, in line with which he would switch to them bitcoins that may be transformed by them into euros, after which they’d switch to him the funds acquired from the conversion, after deducting their fee.
The lawsuit states that in mild of the belief he had in Hefetz and in Advs. Yuval and Arad, and believing that they’d act appropriately and in good religion in keeping with the settlement between the events, Wygodski despatched them in a number of transfers roughly 600 Bitcoins, and later transferred an extra 1,700 Bitcoins.
The claims says that Hefetz and Advs. Yuval and Arad misled him and offered him with false and deceitful representations, in line with which they’d convert his Bitcoins and maintain the funds acquired from the conversion in belief, till they’d be transferred to him, when requested. In actuality, it’s claimed that, they handled the plaintiff’s Bitcoins and the funds acquired following their conversion, as their very own, allegedly stealing them from the plaintiff.
Following the settlement, the legal professionals transferred the Bitcoins to accounts in Cyprus and Singapore with the purported goal of later changing them into euros for Wygodski’s profit. In March 2021, legal professionals Advs. Yuval and Arad signed the “Assertion of Trustees” earlier than a notary, Adv. Haim Aharon, who was the founder and proprietor of the Yuval-Aharon regulation workplace, by which they acknowledged that they maintain in belief the Bitcoins and Wygodski’s funds, and that the funds have been deposited within the checking account of Sabari-Yuval-Arad on the UBS financial institution in Switzerland and in an account in Cyprus.
Arrest warrant in Germany
However at a sure level occasions began to get difficult. A few month later, in April 2021, a businessman named Avi Itzcovich was arrested in Bulgaria, on the request of the German authorities, on the suspicion that Itzkovich, Wygodski, and others have been half homeowners of buying and selling platforms for investments in binary choices and digital currencies, which allegedly defrauded German buyers on these platforms.
Wygodski, got here beneath stress because of the arrest of his enterprise accomplice and resulting from the truth that an arrest warrant was additionally issued towards him by the authorities in Germany. Based on the lawsuit, “Given the sense of stress and helplessness the plaintiff felt resulting from Itzcovich’s arrest, he rapidly turned to Advs. Yuval and Arad to seek the advice of on how he ought to act.” Based on the declare Advs. Yuval and Arad flew to Bulgaria and met with the plaintiff a number of occasions in Might and June 2021 in Sandanski. Adv. Man Yuval took a bodyguard to those conferences.
Based on Wygodski, Advs Yuval and Arad warned and threatened him that if he didn’t act as suggested, he would possibly serve an extended sentence in German prisons. Adv. Yuval instructed the plaintiff to sever ties along with his family and friends, took his passport and Israeli ID card to destroy them. Advs. Yuval and Arad instructed him to sever all contact with Adv. Moshe Strugano, who had represented him in all his non-public issues for a decade, claiming that Adv. Strugano would rob him of all his cash.
The plot thickens. Based on the lawsuit, Advs. Yuval and Arad devised an escape plan for Wygodski, which concerned smuggling him into Latin America, the place they declare they’ve in depth connections, and requested that every one telephone calls between Wygodski and them ought to be performed secretly, utilizing disposable cell phones, by which devoted software program can be put in to thwart spy ware that might hear into or report conversations. In addition they instructed him, in line with the declare, to instantly disconnect from his e-mail server and delete all his folders and paperwork situated within the cloud.
Digital pockets in belief
Based on the lawsuit, Wygodski would switch to Hefetz and Advs. Yuval and Arad his digital wallets with the all of the Bitcoins in his possession and the pockets’s passwords. Hefetz and Advs. Yuval and Arad justified this by saying that the switch of his digital wallets to them was required to stop the Germany authorities from seizing the wallets as proof.
The dealer and legal professionals promised that they’d faithfully maintain his digital wallets and passwords and the Bitcoins inside them, and that they’d convert a number of the cash into euros. In addition they promised that after the plaintiff settled in Latin America, beneath a false id, offered by the legal professionals, Hefetz, Advs. Yuval and Arad would switch to the plaintiff the Bitcoins held by them in belief and all of the funds from the conversion.
Not like the switch of the 600 Bitcoins which was nicely documented, the switch of 1,700 further Bitcoins had no documentation. Based on the plaintiff, this was as a result of he trusted them and since he was beneath monumental stress because of the arrest warrant issued towards him in Germany, and he thus acted in accordance with their plan.
Advs. Yuval and Arad used a 3rd social gathering to switch faux passports to Wygodski, with which he left Bulgaria and entered Greece. Shortly after he traveled from Greece to Portugal with the identical faux passport. In Portugal, Wygodski lived in an condominium paid by Advs. Yuval and Arad. Finally, Advs. Yuval and Arad wished to maneuver Wygodski to Latin America.
When Wygodski left Bulgaria and started his escape to Greece after which to Portugal, Advs. Yuval and Arad refused to have direct contact with him, claiming that they have been afraid that the authorized authorities in Germany would monitor them down. When Wygodski was in Greece and Portugal, the legal professionals often despatched an unidentified messenger to him, to offer him with a cell phone in order that he might discuss to them. After the dialog, the messenger would take the cell phone from Wygodski and disappear.
Based on the lawsuit, after a number of months of dwelling underground and in monetary misery, as a result of he had no entry to his funds, Wygodski requested Advs. Yuval and Arad to switch him the funds acquired from changing the Bitcoins to euros, and the Bitcoins that had been entrusted to them.
The lawsuit says, “All of the plaintiff’s inquiries have been ignored. Advs. Yuval and Arad refused his requests and started to keep away from the plaintiff’s inquiries to them, whereas threatening him that if he tried to contact them with the intention to ask for his cash and Bitcoins again, they’d contact the authorities in Germany and hand over his belongings and cash to them.”
The lawsuit additional reveals that after Wygodski suspected that he had fallen sufferer to fraud, he contacted Adv. Strugano in December 2021, shared with him his issues a few lengthy jail time period in Germany, as Advs. Yuval and Arad had threatened him, and requested to search out out the authorized standing of his enterprise accomplice Avi Itzcovich.
Adv. Strugano reassured Wygodski, informed him that in his opinion the case in Germany was weak and may very well be concluded with a plea deal. He stated that the declare by Advs. Yuval and Arad that he might anticipate to serve an extended jail sentence in Germany was baseless, and that there was no level in persevering with his escape, and it might be higher if he turned himself in to the authorities in Germany.
After Wygodski agreed to show himself over to the German authorities, Adv. Strugano assumed illustration of Wygodski in extradition proceedings, and along with one other German lawyer who was employed, they contacted the prosecutor’s workplace in Germany and turned the plaintiff over to the authorities there in February 2022 .
Right now, Wygodski is being held in custody in a correctional facility in Germany, and his German lawyer is negotiating with the prosecuting authorities to type a plea cut price deal, by which a lot of the fees towards the plaintiff can be dropped, and the buyers can be financially compensated.
“False and ugly smear marketing campaign”
The drama doesn’t finish there. Based on the lawsuit, resulting from Adv. Strugano’s need to thwart Adv. Yuval and Arad’s allegedly felony plan to get their arms on Wygodski’s cash, they went out of their method to discredit Adv. Strugano within the eyes of Wygodski. “After the plaintiff severed his ties with Advs. Yuval and Arad, they devised a malicious plan to hurt Adv. Strugano as nicely and started a false and ugly slander marketing campaign towards him, throughout which they revealed fictitious articles by which Adv. Strugano was accused of allegedly serving to the plaintiff escape from the authorities and who was an confederate of the plaintiff in conducting frauds in foreign currency trading performed worldwide.”
The lawsuit additionally claims that Advs. Yuval and Arad employed the companies of cyber corporations, by which they arrange web sites the place false and deceptive details about Adv. Strugano was posted, which included his title, image, and private particulars. In addition they opened fictitious social media community accounts within the title Adv. Strugano.
Wygodski is at the moment in custody in Germany on suspicion of defrauding buyers. He’s requesting, by Advs. Blecher and Zeevi, to get again the €100 million that he claims was stolen from him throughout his try and evade the investigation for the fraud by which he himself is suspected.
“Fictional intimidation lawsuit”
“Globes” was unable to acquire a response from the defendants Advs. Man Yuval and Uri Arad. Their agency stated that they have been overseas indefinitely, and that there was no method to contact them whereas they have been overseas. Nonetheless, after a short while, Adv. Man Yuval known as again and requested to present his response to the article, and even agreed to fulfill in Tel Aviv. When requested how he might meet in Tel Aviv, whereas his agency stated that he was overseas indefinitely, and that there is no such thing as a method to get in contact with him – Adv Yuval replied: “Most likely a misunderstanding, solely Uri is overseas.”
On the case, Adv. Yuval stated, “It is a fictional intimidation lawsuit, filed by Jack Wygodski, a criminal and worldwide felony who swindled hundreds of harmless victims out of lots of of hundreds of thousands of euros.
“Wygodski is at the moment accused in Germany of operating a felony group and complicated large-scale transcontinental fraud. Wygodzki is in custody till the tip of the proceedings, and felony and civil lawsuits are being introduced towards him and his companions in crime, most of whom are Israelis around the globe.
“He approached us with the intention to obtain monetary companies and offered himself as a world businessman. After a number of months it grew to become clear to us that he belongs to a felony group, and that his funds are funds that have been stolen in a foreign exchange rip-off.
“Once we reported, on the request of the Germany authorities, who’re working towards him, about his large amount of cash saved in a checking account in Singapore, which he tried to cover from the hundreds of victims he defrauded, he made out we have been his enemies and persecuted us in each attainable approach, with the intention to forestall us from cooperating with the authorities.
“For this goal, Wygodski even despatched criminals to our house in the course of the night time, and to our agency throughout workplace hours, with the intention to discourage us from cooperating within the felony and civil proceedings towards him in Germany. These criminals have been filmed and photographed and even arrested by the police, after we filed complaints.
“After the intimidation by the criminals failed, Wygodski moved to the following stage, which is an try and discredit us or delegitimize us, with a lawsuit that’s solely an act of fraud, which after all will likely be rejected. We is not going to be deterred and can proceed to cooperate with the authorities in Germany in order that he pays for his actions in direction of the hundreds of victims”.
Defendant Miki Hefetz stated in response: “I have never acquired the lawsuit but. It is all nonsense, it is all made up. Do not imagine every part you hear.”
All these concerned within the aforementioned case haven’t been convicted of committing the crimes attributed to them and have the appropriate to be presumed harmless.
Printed by Globes, Israel enterprise information – en.globes.co.il – on October 7, 2022.
© Copyright of Globes Writer Itonut (1983) Ltd., 2022.