Haredi Entrepreneur in Arkia Deal Claims No Funds for NYC Fine

Haredi entrepreneur Ezra Unger, who is negotiating to acquire control of Arkia Airlines in a deal reportedly worth NIS 150 million, declared in a sworn affidavit that he possesses no assets, cash, or credit access to pay a $500,000 fine. Sources familiar with the matter suggest Unger is acting as a conduit for other investors from the Haredi community in the Arkia transaction. Unger's statement emerged as part of a settlement with New York Attorney General Letitia James. He was found to have sold 17 apartments in a Williamsburg project, collecting approximately $6.7 million in down payments from buyers without depositing them into a trust account. James stated these funds were used for construction, leaving buyers without apartments or their money for years. As part of the settlement, which includes developer Avraham Berach to provide financing and compensation to buyers, Unger will pay only $50,000 of the $824,000 total fine, citing financial inability. He is also barred from marketing apartments and securities in New York for six years. Unger's intention to purchase the stake of the Nakash brothers, who hold 72% of Arkia's shares, and cease the airline's operations on Shabbat and holidays has met strong opposition from the workers' committee, which holds 22% of the shares. Arkia operates about 2,500 flights on Saturdays and holidays annually, totaling approximately 70 days of operation, and employees have vowed to fight the sale if the cessation of flights is included in the agreement.