Israeli Court Upholds Rare Travel Ban on US Citizen Over Civil Lawsuit
Translated & summarized from Bizportal by baba
An Israeli court has upheld a rare travel ban against US citizen Guy Yosef, who is being sued by Mizrahi Bank-Tefahot for NIS 8.6 million over alleged debt guarantees for a diamond company. The bank claims Yosef sold a Brooklyn property for $1.4 million without transferring the proceeds, violating a debt settlement. The court found a serious risk of asset flight, justifying the ban despite Yosef's claims of being a long-term US resident visiting a sick father. Yosef was ordered to pay NIS 20,000 in expenses.
The story in 6 lines · by baba
- An Israeli court upheld a rare travel ban on US citizen Guy Yosef in a NIS 8.6 million civil lawsuit.
- Mizrahi Bank claims Yosef sold a Brooklyn property for $1.4 million without transferring proceeds.
- The court cited a serious risk of asset flight as justification for the travel ban.
- Yosef argued the ban unfairly impacted his visit to his sick father in Israel.
- The judge noted Yosef's statements suggesting he viewed the sale proceeds as his own.
- Yosef was ordered to pay NIS 20,000 in legal expenses.
An Israeli District Court judge has upheld a rare travel ban imposed on a US citizen residing abroad, stemming from a civil lawsuit filed against him. Judge Yaakov Shaked of the Tel Aviv District Court rejected an appeal by Guy Yosef, a US citizen, against a decision by Registrar Adit Katzav. The lawsuit was initiated by Mizrahi Bank-Tefahot, which is suing Yosef for NIS 8.6 million, alleging he guaranteed the debts of the diamond company "Ovadia Diamonds."
According to the bank, after the company defaulted on its obligations, a debt settlement was reached in 2019 between the bank and Yosef and his family. This included the pledging of Yosef's assets and a commitment to pay NIS 2 million, plus $1 million from the sale of a property in Brooklyn, New York. The bank claims Yosef sold the Brooklyn property for $1.4 million without informing them or transferring the proceeds, raising fears he would leave Israel permanently and hinder the execution of a potential judgment.
Yosef appealed the travel ban, arguing he has been a US resident for decades, has no intention of fleeing justice, and that the ban severely impacts his visit to his sick father. He stated he had already paid NIS 2 million and that legal proceedings were ongoing. The registrar initially issued the ban ex parte, but maintained it after finding Yosef had indeed sold the property without transferring the funds to the bank, creating a risk of asset flight.
Judge Shaked noted that travel bans are extreme measures impacting the constitutional right to freedom of movement, and should only be issued when there's a genuine and serious concern that a party's departure would obstruct judicial proceedings or prevent judgment enforcement. He found that Yosef's alleged violation of the debt settlement, specifically selling the property for $1.4 million and not transferring the funds to the bank, constituted a fundamental breach of the agreement and suggested the bank's claim was not frivolous.
The judge further elaborated that Yosef's failure to account for the $675,000 he received for the property, his lack of assets in Israel, and his statements suggesting he viewed the sale proceeds as his own, not the bank's, indicated a concrete risk of asset flight. Shaked concluded that given the funds Yosef had already received, he could meet the bail conditions set by the registrar. Yosef was ordered to pay NIS 20,000 in expenses.