European Real Estate Dispute Escalates: Court Asked to Fine or Jail Businessman

A business and legal battle between businessman Ari Stemetzky and his former real estate partner, Avihai Efrat, has intensified, leading to a contempt of court petition. Efrat is asking the Tel Aviv District Court to compel Stemetzky and his company, Amos U'banot Investments and Properties Ltd., to comply with a judicial order and transfer 450,000 euros to him, or face fines or imprisonment.

The dispute stems from a 16-year partnership in real estate projects in the Czech Republic and Slovakia, where Stemetzky held an 85% stake and Efrat 15%. Stemetzky provided capital while Efrat managed the projects on the ground. In July 2026, Efrat filed a lawsuit alleging that Stemetzky and his company, during negotiations for a business separation, secretly took over the projects, management companies, and bank accounts, dispossessing him of his rights.

Following a hearing in September 2026 before Senior Judge Hagai Brenner, the parties reached an interim agreement that was approved by the court on September 14. This agreement acknowledged Efrat's claims, imposed restrictions on asset transfers in Slovakia and the Czech Republic, and stipulated the distribution of remaining project surpluses. Specifically, 1 million euros were to remain in the Czech project company (BENUGA) for completion, approximately 3.5 million euros held in trust were to be released, Stemetzky was to receive 5.55 million euros for loans he provided, and Efrat was to receive 450,000 euros.

In the new petition, Efrat claims Stemetzky and his company violated this agreement. He states that the 3.5 million euros from trust funds were released with his consent and deposited into BENUGA's account on September 17, but the 450,000 euros owed to him have not been paid. Efrat alleges this is "self-justice in its purest form," accusing Stemetzky's side of taking funds into their company's coffers and then refusing to fulfill their obligations.

Stemetzky's defense, represented by attorney Noam Zamir, argues that Efrat concealed a criminal complaint he filed with Czech police, suggesting that the ongoing criminal proceedings necessitate a review of the financial transfers. Stemetzky's attorneys also stated they have not yet withdrawn funds for loan repayment and that all claims should be resolved through mediation, not "frivolous proceedings and threats." Efrat, however, dismisses these as delaying tactics, asserting that Stemetzky is retaliating for the criminal investigation and that no legal impediment prevents the payment.

Stemetzky's representatives issued a statement claiming Efrat hid the criminal complaint against BENUGA from the court and that Stemetzky is entitled to receive a significantly larger sum. They also stated that it is not known if Czech police have opened an investigation against Stemetzky, contrary to the plaintiffs' claims, and accused Efrat of managing the proceedings through the media and filing baseless lawsuits.