Seiden Law has been appointed as US counsel to Trustee Adv. Lior Dagan, the court-appointed Trustee in an Israeli insolvency proceeding against Michael Ben-Ari aka Michael David Greenfield (“Greenfield”). Mr. Dagan was appointed by the Israeli courts to lead the global efforts to recover the monies allegedly stolen by Greenfield. Greenfield, who has recently been dubbed by Israeli media as “the Israeli Madoff,” is under criminal investigation by the Israeli Securities Authority following an alleged 15-year long Ponzi scheme in which Greenfield, through his investment vehicle EGFE Israel Ltd., ensnared hundreds of American and Israeli victims and caused losses that may exceed $150 million.
As counsel to Mr. Dagan, Seiden Law has filed a Chapter 15 case in US Bankruptcy Court in Manhattan, seeking recognition of the Israeli insolvency proceeding in the US. According to the Chapter 15 filing, Greenfield moved to Israel from the U.S. thirty years ago and began to solicit investment money in Israel from investors in a “guaranteed” return investment scheme. The Chapter 15 filing explains that after being released under house arrest in Israel, Greenfield immediately absconded, reportedly using a false passport, and has concealed his current whereabouts. The case has been referred to the FBI’s New York office.
On August 6, 2021, Bankruptcy Judge Hon. Shelley Chapman granted a powerful court order granting broad powers to Mr. Dagan, to recover assets in the United States that are identified as fruits of the alleged criminal enterprise. Seiden Law now moves forward with Mr. Dagan to identify and recover stolen funds, using the full powers provided by the U.S. courts.