Investors Sue Israeli-Greek Tourism Venture Owners for 4.5 Million Shekels Over Alleged Fraud
Twelve investors have filed a lawsuit against Daniela and Nadav Nevo, owners of Danuki Investments, a tourism project operator in Israel and Greece, demanding the return of 4.5 million shekels. The investors accuse the Nevos of fraudulent conduct and misleading public securities offerings without proper prospectuses, despite a prior fine of 85,000 shekels imposed by the Israeli Securities Authority in July 2024 for illegal public securities marketing. The lawsuit details several projects promoted for investment, including a vacation apartment project in Greece, luxury glamping tents and cabins in Mitzpe Ramon, a similar project in Kibbutz Yiftach, and a luxury guest villa in Moshav Nurit.
According to the complaint, the Nevos raised approximately 4 million shekels through social media campaigns and celebrity endorsements involving Guy Gior and Liran Kohener, promising investors shares and returns within 18 months. However, the plaintiffs claim these projects are either inactive, nonexistent, embroiled in legal disputes, lack proper licenses, or operated by entities that do not exist. Specifically, the Greek project is described as unclear beyond promotional photos and restaurant visits, the Mitzpe Ramon glamping site lacks a business license and faces eviction lawsuits, and the Nurit villa was subject to a cease-work order since June 2023, a fact allegedly concealed from investors.
The investors characterize themselves as honest individuals, some serving in combat reserve duty, who were deceived by false representations. They argue that securities laws exist to protect the public from such information asymmetry and that the Nevos failed to provide legally required disclosures. Nadav Nevo responded that the lawsuit reflects claims from a small group of investors and attributes project difficulties to the COVID-19 pandemic, the "Iron Swords" military operation, and ongoing security challenges impacting tourism. He stated all invested funds were used for project development, denied wrongdoing, and noted that the company now operates with legal counsel following the prior regulatory fine. A formal defense will be submitted in due course.
The court in Tel Aviv will now consider the investors' request to annul the investment contracts and order the return of their funds. This case highlights ongoing regulatory and legal scrutiny of crowdfunding and public investment offers in Israel's tourism sector amid challenging economic and security conditions.
