Lawsuit: 'Gatekeepers' Allowed Registration of Fictitious Mortgage on Netanya Apartment
A brother and sister living in Germany claim that a network of impostors mortgaged their Netanya apartment to a non-bank lender by forging their IDs. They are now seeking to annul the lien.
In a lawsuit recently filed in the Lod District Court, the owners of an apartment in Netanya allege serious fraud that led to the mortgaging of their property in favor of a non-bank lender, facilitated by a network of impostors who forged their identification documents. The lawsuit was filed against several banks and the Land Registration Office, claiming that as "gatekeepers," they were negligent in failing to prevent the scam and must provide compensation.
The plaintiffs, a brother and sister who are Israeli citizens living in Germany, discovered that their apartment had been mortgaged to a limited company specializing in non-bank credit after it granted a mysterious network of impostors a two-million-shekel loan. The lawsuit, filed by attorney Michael Ben-Zvi, states that the scam began about two years ago when their apartment was broken into and their ID cards were stolen. These were allegedly used to create fictitious identification documents.
According to the siblings, a fake account was opened at Bank Leumi, a life insurance policy was purchased from the Phoenix company, and a mortgage loan was granted to the impostors. The plaintiffs emphasize that they were not in Israel at the time and possess no Israeli driver's licenses, making it clear that these actions were not carried out on their behalf. They are now demanding the cancellation of the lien registered last March, describing the incident as a "systemic failure" where defendants ignored clear warning signs.
"Magen Afikim" stated: "The company rejects the claims raised against it. This is a legal proceeding in its early stages, and factual and legal claims will be clarified before the competent court. We believe it is inappropriate to draw conclusions before the lawsuit is heard on its merits."
The Ministry of Justice responded: "The Authority for Registration and Settlement of Land Rights acts in accordance with the law. In the absence of any suspicion of forgery directed at the Authority, no claim arose regarding illegal actions by the Land Registrar. The fraud was committed outside the registration office using external parties. The documents submitted appeared to be in order."
The Phoenix company stated: "The lawsuit has been received; we will study its details and respond in court as customary."
