Firm brings massive Ponzi scheme to court on behalf of Israeli trustee

Oct 28, 2021

The Honorable Shelley C. Chapman, of the United States Bankruptcy Court in Manhattan, issued a sweeping court order this past week, granting recognition of the Israeli insolvency proceeding against Michael David Greenfield, a.k.a. Michael Ben-Ari (“Greenfield”). Judge Chapman issued the Order upon the petition of Seiden Law on behalf of Adv. Lior Dagan, the Trustee appointed by the Israeli court.

Greenfield, who has recently been dubbed “the Israeli Madoff,” is under criminal investigation by the Israeli Securities Authority following an alleged 15-year long Ponzi scheme that ensnared hundreds of American and Israeli victims and caused losses that may exceed $150 million. The U.S. Bankruptcy Court’s latest order effectively makes permanent the powers the Court granted to Adv. Dagan on an emergency basis in August 2021, to investigate and recover assets in the United States that are fruits of the alleged criminal enterprise. It also grants Adv. Dagan further administrative authority by recognizing him as Greenfield’s Foreign Representative under U.S. bankruptcy law, with the power to manage Greenfield’s estate and affairs in the United States.

Greenfield, who is currently a fugitive after he jumped bail and absconded from Israel using a fake passport, moved to Israel from the US thirty years ago and began to solicit investment money in Israel from investors in a “guaranteed” return investment scheme. Seiden Law represents Adv. Dagan, who has been appointed by the Israeli court and leads global efforts to recover the allegedly stolen money. Seiden Law is a globally recognized law firm leader in fighting for clients to recover stolen money and aggressively resolve business disputes. If you or someone you know is a victim of this alleged Ponzi scheme or any other large-scale fraud, please contact Seiden Law.


Olivia Johann
Business Development Lead
(646) 766-1704
[email protected]