Michael Kleiner Denies All Allegations in Dayan Brothers Real Estate Fraud Case

Michael Kleiner has issued his first public response denying all allegations against him in the ongoing investigation involving the Dayan brothers and real estate developer Dudi Apple. The case centers on suspicions that Apple, who entered bankruptcy proceedings in 2012 due to debts estimated in the tens of millions of shekels, orchestrated a scheme to conceal future profits from urban renewal projects during the insolvency process. Authorities allege Apple arranged for the trustee appointed to his case to collaborate with the Dayan brothers, who acquired his company, in a deal that funneled profits to Apple's son through undeclared assets.

According to senior police sources, starting in 2016 Apple began advancing several large-scale urban renewal projects in Petah Tikva and Givat Shmuel via a company registered under Kleiner's name. Shortly after, this company, which held no official assets at the time, was transferred without compensation to the Dayan brothers. Police believe these projects involve hundreds to thousands of apartments and that Apple knowingly benefited from substantial profits hidden from the court during bankruptcy.

Kleiner stated he has always acted lawfully and cooperated with enforcement authorities. He emphasized his innocence, noting he was previously questioned on the same matters in 2023 and expects the investigation to conclude appropriately. He declined to engage in public debate over the timing of the renewed inquiry. The investigation is ongoing, with the police continuing to probe the alleged asset concealment and fraud.

The case highlights complex financial maneuvers in Israel's real estate sector and raises questions about transparency in bankruptcy proceedings involving urban renewal projects.