Arkia Buyer Ezra Ungar Claims Poverty Amid US Fraud Probe
Ezra Ungar, the Haredi businessman negotiating to acquire control of Israeli airline Arkia for an estimated NIS 150 million (approximately $40 million), has told New York authorities he cannot afford to pay a $500,000 fine. In a sworn affidavit, Ungar stated he possesses no real estate, insufficient assets, cash, or credit to meet the payment. Reports also indicate his role in the Arkia deal has been misrepresented; sources suggest he is acting as a broker for other Haredi investors rather than the primary buyer.
Ungar's financial declaration emerged following a settlement with New York Attorney General Letitia James. Her office investigated Ungar for selling apartments in a Williamsburg project before obtaining necessary permits, collecting approximately $6.7 million in down payments from 17 buyers. Instead of depositing these funds into a trust account as required by law, Ungar allegedly used the money for construction and other expenses, leaving buyers without their apartments or funds for years.
Under the settlement, buyers can reclaim their down payments with interest from a new developer, Abraham Brach, or use the funds to purchase the apartments from him. Brach's company is providing the necessary financing for all obligations, including buyer compensation. Attorney General James stated, "When New Yorkers entrust their savings as a down payment on a home, that money is not a private piggy bank that developers can loot." Ungar's settlement includes fines totaling $824,000, but due to his claimed inability to pay, nearly the entire amount has been frozen, requiring him to pay only $50,000 currently. Authorities reserve the right to demand the full fine and pursue further action if he provided false financial information. He is also banned from marketing apartments and securities in New York for six years.
The new details contrast sharply with previous portrayals of Ungar, 36, as a successful real estate developer. Ungar's business background includes selling baked goods, real estate brokerage, and fundraising from investors. His reported intention to purchase Arkia from the Nakash brothers and cease the airline's operations on Shabbat and holidays has met opposition from employees, who hold about 22% of the company's shares and warn of financial losses. The Nakash brothers own 72% of Arkia, with employees holding most of the remaining shares. A previous attempt to sell control to American businessman Elliott Broidy collapsed earlier this year.
