Three Israelis are suing a real estate developer from Rockland County for allegedly reneging on millions of dollars in investments, and in one case, on a $4 million verdict issued by a rabbinical court.
Levi Kelman of Monsey was sued March 14 in federal court, Newark, New Jersey, and April 12 in federal court, White Plains.
Kelman is CEO of Blue Onyx Cos., a Paterson, New Jersey company that does not just buy and sell properties, according to its website, but builds communities.
Daniel Rubli and Dalia Berman, of Israel, claim Kelman said he could find undervalued properties, quickly renovate them and flip them for a profit, according to the Newark complaint.
“Kelman had a reputation for taking care of members of the religious Jewish community,” the complaint states, and was introduced as someone with whom investors could make a substantial profit.
Rubli and Berman invested $400,000 in 2011, according to their lawsuit. By the end of last year ”“ after several purchases, refinancing, and sales ”“ they claim they had a stake in nine properties and nearly $5.3 million in funds.
Kelman has made some payments, the complaint states, but has retained most of the profits. Rubli and Berman accused him of fraud and are demanding $6 million.
Kelman did not respond to an email asking for his side of the story.
Benzion Rabinowitz, a British citizen who lives in Jerusalem, tells a similar story in the White Plains lawsuit.
He claims to have invested several million dollars in 24 properties, from 2010 to 2014. Most of the properties are in Paterson, New Jersey; one is in Spring Valley, Rockland County.
Rabinowitz said Kelman failed to provide him with information about finances and operations and did not distribute profits, even after properties were sold.
In 2018, they agreed on a settlement. Kelman would pay Rabinowitz $5.2 million, over two years. But Kelman allegedly failed to make the payments.
Last year they arbitrated the dispute before Maysharim, a rabbinical court in Lakewood, New Jersey.
Three Maysharim judges ruled on Jan. 3 that Kelman must immediately pay Rabinowitz $4 million.
Kelman has not made any payments, Rabinowitz claims. He is asking federal court to confirm the rabbinical court verdict and direct a $4 million judgment.
Rabinowitz is represented by Manhattan attorney Efrem Schwalb. Rubli and Berman are represented by Teaneck, New Jersey attorney Allen P. Sragow.
