Israeli Court Extradites Hasidic Businessman Michael Payne to US Over $28 Million Fraud Case
Michael Payne, a 47-year-old American businessman and member of the Gur Hasidic community, was extradited from Israel to the United States to face charges of bank and communication fraud involving approximately $28 million. Payne was arrested in Israel in July 2023 following a request from US authorities and was handed over to US officials after a lengthy legal process. He arrived in New York on Thursday and was transferred to St. Louis, Missouri, where he will face his initial federal court hearing.
The extradition case was coordinated by the Israeli Police Intelligence Division and Interpol, with legal proceedings overseen by Judge Ohad Gordon at the Jerusalem District Court. In April 2024, Gordon declared Payne extraditable but criticized his conduct during the process, noting repeated delays, disputes over legal representation, and failure to provide promised documents. Despite the ruling, Payne remained in Israel for over two years before being sent to the US.
The US indictment, filed in August 2020, accuses Payne of repeatedly submitting false documents to banks and lenders between 2016 and 2019 to secure loans and refinance real estate projects managed by his company, T.E.H. Management, and related entities. He allegedly inflated occupancy rates, falsified income and budget data, and obtained loans totaling millions for properties in St. Louis, Kansas City, and Tulsa. A 2019 loan attempt for $5.2 million was rejected. In March 2020, the federal government suspended subsidies for Payne’s housing complexes following tenant complaints about poor living conditions.
Each charge carries a maximum sentence of 30 years in prison, and prosecutors seek to seize at least $23 million, claimed as proceeds from the crimes. The extradition was approved on May 14 by Amichai Eliyahu, acting Minister of Justice. US Federal Prosecutor Thomas Albus praised the extradition, emphasizing the importance of bringing Payne to justice. The FBI’s St. Louis office reaffirmed its commitment to pursuing fugitives regardless of their location. Payne denies all allegations against him.
