Israeli Real Estate Tycoons Dayan Brothers Investigated in Major Fraud Probe by Lahav 433
Israeli businessmen Yaffa and Yitzhak Dayan, owners of the Dayan Group, one of Israel's largest private real estate conglomerates valued at approximately 2.5 billion euros in 2022, are under investigation by the Lahav 433 national economic crime unit. The probe centers on allegations that they were involved in transactions acquiring assets linked to businessman Dudi Apple at below-market prices to shield them from creditors during bankruptcy proceedings. These assets were later sold at market value, generating significant profits. Authorities are examining whether these deals were part of a scheme to conceal Apple's rights in projects and real estate worth tens of millions of shekels, while benefiting indirectly from the income generated. There is also suspicion that income from these assets was not fully reported to bankruptcy officials and tax authorities.
Alongside the Dayan brothers, businessman Dudi Apple and attorney Michael Kleiner were also questioned and released under restrictive conditions after 48 hours. Another suspect currently abroad is expected to be interrogated. The Dayan family, originally immigrants from Iran who arrived in Israel in 1950, quietly built their business empire from modest beginnings. The eldest brother, Moshe (Miki) Dayan, started with a used car business in the US before returning to Israel in 1987 to open a Mercedes service center with his brother Yaakov. The family expanded into car trading and fuel additives, later growing significantly in real estate, hospitality, and energy sectors.
Yaffa Dayan leads urban renewal projects in Givat Shmuel and Petah Tikva, and the group acquired the Zohar Tower, previously controlled by Dudi Apple, renewing business ties now under scrutiny. In 2017, the Dayan Group purchased the Crown Plaza hotel chain from Africa Israel for about 950 million shekels and expanded its hotel portfolio in Israel. Internationally, the family increased its presence in Germany through Golden Capital, acquiring shares in ADO, a major Berlin real estate company, and later profiting from its sale to Adler.
In energy, the Dayans invested around 200 million shekels to acquire a stake in Delek Drilling during financial difficulties faced by the Delek Group. Despite a temporary injunction, the deal was finalized, leaving the Dayans with about 5% ownership, which appreciated significantly.
The Dayan family has maintained a low public profile despite their vast business activities. Their lawyers stated that the investigation concerns events from over a decade ago, has been ongoing for years without evidence of wrongdoing, and that the Dayans are law-abiding respected businessmen. The investigation is still active and no charges have been filed yet.
