LAWSUITS FILED


IDB vs. Nachshon Draiman - 2007 Israel Discount Bank Fraud Lawsuit $45 million – filed Jan. 2007 in Jerusalem, Israel.

The allegation is that the developers of the hotel Nachshon and Elitzur Draiman committed illegal acts that brought the debt of the hotel to be about $45 million dollars, most of it to Israel Discount Bank (The hotel Jerusalem Pearl is located outside the Jaffa Gate - the old city of Jerusalem)

The court appointed trustees of the Jerusalem Pearl Hotel claim in the municipal court in Jerusalem, to charge the developers in damages of over $20 million dollars - according to the lawsuit filed by the court appointed trustees, the lawyers Yair Green, Yaron Feinshtein and Nitzan Shemueli, claim that the developers of the hotel, the brothers Nachshon Draiman and Elitzur Draiman, committed illegal acts that brought the debt of the hotel to over $45 million dollars, most of it to Israel Discount Bank.

The trustees claim that they are in the process of selling the property, at the asking price of $20 million dollars, and after the sale there will be a debt of about $25 million dollars.

The difference of about $25 million dollars they hold against the brothers Nachshon Draiman and Elitzur Draiman, they developed the hotel with a foreign company that is incorporated in Illinois. (Jerusalem Enterprises)

The Hotel which has 88 rooms and 22 suites, was operated by the Dan Hotels chain, and according to the trustees, the previous owners Nachshon Draiman and Elitzur Draiman owe the Dan Hotel Chain about $250,000.

According to them Nachshon Draiman and Elitzur Draiman committed transfers of funds between various accounts, gave various guarantees in a form of checks that one of the accounts the check was drawn on was closed, presented exhibits and fictitious and false documents as to substantiate their investment in the hotel - which is false and fraud, transferred funds overseas from the funds belonging to the hotel project without explanation or reasoning and inflated the amount of cost of construction (about $2,500 per square meter) amounts that are way greater than any reasonable estimates that would cost to build the hotel.

Additional claim is that Nachshon Draiman and Elitzur Draiman presented false and deceptive documentation to the Israeli government division of development and investment, in order to obtain loans with government guarantees and government grants. (January 15, 2007)

Possible criminal charges may be initiated.

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