A construction scandal comes to an end
A construction scandal comes to an end

Boaz Yona, the ringleader in the Heftziba scandal, was convicted Monday on all charges against him. Customers said, however, the nine convictions against the former Heftziba CEO, including fraud, embezzlement and money laundering, are small consolation for thousands who were left homeless and bankrupt after the collapse of the real estate development company.

“There is no forgiveness and no atonement for Yona,” said Ami Amzaleg, one of many who were defrauded out of their life savings by Heftziba. “I would never agree to pray with a criminal like him. One year ago on Yom Kippur we sat on the floor of our apartment and cried, and now we are doing the same thing.”

Yona had fled Israel shortly after the investigation into the construction company began in August of 2007 and was captured in Milan, Italy shortly thereafter and extradited to Israel. On Monday he facedJerusalem District Court judge Moshe Ravid on  the nine charges drafted under a plea-bargain agreement, which included conspiracy to commit fraud, fraudulently receiving funds in severe circumstances, keeping false company records and using forged documents.

Heftziba, a giant among Israeli construction companies, was involved in several building projects in Judea and Samaria when the scandal broke. Many customers who had already paid the company for their apartments eventually occupied their half-finished dwellings. Some of the customers faced stiff resistance from the extreme leftist organization Peace Now, which lost a suit it filed against a Heftziba project in Modi’in Illit.

According to prosecutors, Yona deceived customers with a collection of forged company records that exaggerated the company’s sales and profitability figures, and misled regulators and investors by publicly releasing false and misleading company reports. Prosecutors also believe that Yona is guilty of money laundering and violating securities regulations.

Many Heftziba customers left with no money and no home have yet to be compensated for their losses. While the court prepared for compensation proceedings following the ruling, several of Yona’s angry victims approached the newly convicted businessman and loudly vented some of the anger they felt at their financial and domestic ruin.

Yona replied to the shouts with an apology.