Israeli Lawyer and Partner Ordered to Pay $190,000 in Miami Real Estate Scam
An Israeli court has ruled that lawyer David Angel and his business partner David Tausovitch defrauded a pair of Israeli investors in a Miami real estate "flip" scheme, ordering them to repay $190,000 plus interest and legal fees. The investors, acting through their son, transferred $220,000 in late 2019 to a US attorney's trust account for investment in properties bought low, renovated, and sold for profit.
Angel, who promoted the scheme in a YouTube video claiming his company had over 33 years of experience and promising annual returns of 10% to 35%, was found to have misrepresented his role and the company's history. He claimed to be the owner and active CEO, but later testified he was not an owner and only drafted agreements. The court found Angel's claims in the promotional video, including the company's age and his ownership, to be deliberate falsehoods.
The investors chose a profit-sharing option, expecting high returns. The agreement stipulated that properties would be registered in the investors' names, but a condominium purchased in Miami in January 2020 for $148,300 was registered under the company's name. Angel later informed the investors that approximately $50,000 remained in trust after renovation costs, promising to transfer the balance after the situation stabilized, and denied renting out properties for flip deals.
However, Tausovitch admitted that funds were transferred from the trust account to the companies' accounts and that the property was secretly rented out during the COVID-19 pandemic, generating $5,400 in rent, a lease agreement for which was never provided. The court noted that Angel's assurances that funds remained in trust were either knowingly false or made without due diligence.
Despite a subsequent promissory note promising repayment of $30,000 and $195,000, only the first payment was made partially and late, with the remaining amount never paid. The court rejected the defendants' claims that the note was a binding settlement agreement, as it was not signed by the investors and was described by its drafter as a unilateral commitment. The property was eventually sold in November 2022 for $250,000.
The court awarded the investors $190,000, to be paid jointly and severally by the companies, Angel, and Tausovitch, plus interest and linkage to the November 2022 exchange rate, along with 70,000 shekels for emotional distress, 40,000 shekels in expenses, and 45,000 shekels in legal fees. The companies were also ordered to separately pay the full rental income of $5,400, as it derived from the investors' funds.
