Intermediary Ordered to Pay Seller Over 1.4 Million Shekels in Fraud Case
Translated & summarized from Bizportal by baba
Leah Shtark was awarded over 1.4 million shekels plus interest and expenses from Fahr Zacharia, an intermediary who defrauded her in an apartment sale. Shtark claimed Zacharia took the 1.6 million shekel sale proceeds for himself, failing to transfer the majority to her. The court found Zacharia exploited Shtark's dependency and ruled against him based on bank evidence and his inconsistent testimony. This ruling follows a previous finding of liability against Zacharia for similar actions in another sale involving Shtark.
The story in 5 lines · by baba
- Fahr Zacharia ordered to pay Leah Shtark 1.43 million shekels for defrauding her in an apartment sale.
- Shtark claimed Zacharia took the majority of the 1.6 million shekel sale proceeds for himself.
- A 600,000 shekel check was deposited into Zacharia's personal bank account, with a potentially forged endorsement.
- The judge found Zacharia exploited Shtark's dependency and acted without authorization.
- Zacharia had previously been found liable for similar fraud in another sale involving Shtark.
A seller, Leah Shtark, has been awarded 1,432,498 shekels plus interest and 70,000 shekels in expenses and legal fees from Fahr Zacharia, an intermediary she accused of defrauding her in a 1.6 million shekel apartment sale in Rehovot. Initially, she sued the buyers, their lawyer, and Zacharia for 2.6 million shekels. However, on the court's recommendation, Shtark agreed to drop the suit against the buyers and their lawyer after the evidence stage, proceeding only against Zacharia.
Shtark alleged that Zacharia, whom she had known for years and trusted implicitly, exploited her dependence, presenting himself as an assistant in the sale but ultimately taking the money for himself. She stated she did not authorize anyone to collect funds on her behalf, nor did she approve transfers to third parties or agree to payment by negotiable checks. She testified that she was only informed of the sale price and that her mother, from whom she received the apartment as a gift, could live there for life, without understanding the legal implications of the transaction.
The central piece of evidence was a 600,000 shekel check, part of the sale proceeds, deposited into Zacharia's bank account. Shtark claimed her endorsement on the check was forged. A bank official's affidavit corroborated the deposit to Zacharia's account. Judge Zvi Weitzman of the Central District Court in Lod noted that Zacharia failed to explain why such a large sum entered his personal account, under what authorization, or where the money went afterward, and did not present an alternative version. Zacharia had also failed to appear for earlier hearings until a bench warrant was issued.
In his defense, Zacharia initially claimed no involvement in the transaction or the funds, but later stated, "If I did indeed receive 600,000 shekels, it means I was involved." The judge found Zacharia's testimony unreliable, stating his memory seemed to "turn on and off according to his will and the apparent momentary interest." The court found that Zacharia exploited Shtark's dependency, creating a mechanism for the funds to be transferred to him, establishing liability under tort law and the Unjust Enrichment Law. The judge noted this was not Zacharia's first offense, as he had previously been found liable for misappropriating funds from another apartment sale by Shtark, which led her to realize she had been misled in this transaction as well. The judge deducted 167,502 shekels paid by the lawyer for betterment levies, municipal taxes, and land transfer taxes from the sale proceeds, ruling that Zacharia received the remainder without passing it to the owner.