SEC v. Yossi Engel, No. LR-26052, Central District of California (July 19, 2024) — Press Release
raw: Yossi Engel
Yossi Engel, No. 2:23-cv-00213-PA (July 19, 2024)
summary
The SEC obtained a final judgment against Yossi Engel for orchestrating a $47 million affinity fraud targeting the Orthodox Jewish community.
paragraph
Yossi Engel was charged with misappropriating investor funds intended for security equipment and Israeli real estate development for personal use and Ponzi-like payments. He was ordered to pay $5,099,826.00 in disgorgement plus $381,731.80 in prejudgment interest. This obligation was satisfied by a parallel criminal restitution order requiring him to pay $11,758,030.58.
narrative
The SEC obtained a final judgment against Yossi Engel for perpetrating a $47 million affinity fraud targeting at least 29 members of the Orthodox Jewish community between December 2018 and January 2020. Operating through iWitness Tech, LLC, Engel falsely claimed investor funds would be used to purchase security cameras and develop property in Israel. Instead, he misappropriated the money for personal benefit and to fund Ponzi-like payments to earlier investors. Engel consented to a permanent injunction against violating the Securities Act of 1933 and the Securities Exchange Act of 1934. While ordered to pay over $5 million in disgorgement and interest, this amount was deemed satisfied by a $11,758,030.58 restitution order from a parallel criminal action. The SEC investigation was conducted with assistance from the Israel Securities Authority.
Classified affinity-fraud(confidence 100%). EDGAR detection: forms Form D· recall 58% / precision 2%. detection rule →
Parties
Securities and Exchange CommissionYossi Engel
Keywords
engelyossi engelsecurities exchangesecuritiesexchange commissionmembers orthodoxyossisecexchangejuly securitiesfinal againstperpetrating millionmillion affinityaffinity fraudorthodox jewish
Extracted insights
Dollar amounts 5
- $47.00M $47 Million $10M–$100M
- $47.00M $47 million $10M–$100M
- $11.76M $11,758,030 $10M–$100M
- $5.10M $5,099,826 $1M–$10M
- $382K $381,731 $100K–$1M
Entities 10
- person Daniel Blau
- person disgorgement figure
- person earlier investors
- person investor money
- person israel securities authority
- person marc blau
- agency sec’s investigation
- agency sec’s litigation
- agency Securities and Exchange Commission
- person yossi engel
Triples 13
- Securities and Exchange Commission Obtains Final Judgment Against Yossi Engel
- Yossi Engel Perpetrate Affinity Fraud Members of the Orthodox Jewish Community
- Yossi Engel Misappropriate Funds Investor Money
- Yossi Engel Make Ponzi-like Payments Earlier Investors
- Engel Consent to Final Judgment Violating 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
- Engel Pay Disgorgement $5,099,826.00
- Engel Pay Prejudgment Interest $381,731.80
- Disgorgement Figure Deemed Satisfied Restitution Order Entered in the Parallel Criminal Action United States v. Yossi Engel
- SEC’s Litigation Be Led By Daniel Blau
- SEC’s Litigation Be Supervised By Douglas M. Miller of the Los Angeles Regional Office
- SEC’s Investigation Be Conducted By Tamar Braz and Dora Zaldivar
- SEC’s Investigation Be Supervised By Marc Blau
- SEC Acknowledge Assistance Of Israel Securities Authority
Extracted body text (2,235c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26052 / July 19, 2024 Securities and Exchange Commission v. Yossi Engel, No. 2:23-cv-00213-PA (C.D. Ca. Jan. 12, 2023) SEC Obtains Final Judgment Against a Los Angeles Individual for Perpetrating a $47 Million Affinity Fraud Targeting Members of the Orthodox Jewish Community On July 15, 2024, the Securities and Exchange Commission obtained a final judgment against Yossi Engel, whom the SEC charged for perpetrating a $47 million affinity fraud from December 2018 to January 2020, targeting at least 29 members of the Orthodox Jewish community. The complaint alleged that Engel, through his company, iWitness Tech, LLC, initially induced members of the Orthodox community to invest by falsely telling them that he would use their funds to purchase and install security camera equipment. In the second iteration of his scheme, Engel allegedly promised to use investor funds to purchase a property in Israel that he would then develop and sell. The complaint alleges both claims were false and that rather than use investor money to purchase cameras or develop property, Engel misappropriated the funds by spending investor money for his personal benefit and making Ponzi-like payments to earlier investors in an attempt to keep the scheme going. Engel consented to a final judgment permanently enjoining him from violating 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Engel was ordered to pay disgorgement in the amount of $5,099,826.00, representing his net profits gained from the conduct alleged in the Complaint, together with prejudgment interest in the amount of $381,731.80. However, the disgorgement figure was deemed satisfied by the restitution order entered in the parallel criminal action United States v. Yossi Engel, Crim. No. CR 23-00213 MEMF (C.D. Cal.), requiring Engel to pay $11,758,030.58. The SEC’s litigation was led by Daniel Blau and supervised by Douglas M. Miller of the Los Angeles Regional Office. The SEC’s investigation was conducted by Tamar Braz and Dora Zaldivar and supervised by Marc Blau. The SEC acknowledges the assistance of the Israel Securities Authority.
OCR text (2,235c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26052 / July 19, 2024 Securities and Exchange Commission v. Yossi Engel, No. 2:23-cv-00213-PA (C.D. Ca. Jan. 12, 2023) SEC Obtains Final Judgment Against a Los Angeles Individual for Perpetrating a $47 Million Affinity Fraud Targeting Members of the Orthodox Jewish Community On July 15, 2024, the Securities and Exchange Commission obtained a final judgment against Yossi Engel, whom the SEC charged for perpetrating a $47 million affinity fraud from December 2018 to January 2020, targeting at least 29 members of the Orthodox Jewish community. The complaint alleged that Engel, through his company, iWitness Tech, LLC, initially induced members of the Orthodox community to invest by falsely telling them that he would use their funds to purchase and install security camera equipment. In the second iteration of his scheme, Engel allegedly promised to use investor funds to purchase a property in Israel that he would then develop and sell. The complaint alleges both claims were false and that rather than use investor money to purchase cameras or develop property, Engel misappropriated the funds by spending investor money for his personal benefit and making Ponzi-like payments to earlier investors in an attempt to keep the scheme going. Engel consented to a final judgment permanently enjoining him from violating 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Engel was ordered to pay disgorgement in the amount of $5,099,826.00, representing his net profits gained from the conduct alleged in the Complaint, together with prejudgment interest in the amount of $381,731.80. However, the disgorgement figure was deemed satisfied by the restitution order entered in the parallel criminal action United States v. Yossi Engel, Crim. No. CR 23-00213 MEMF (C.D. Cal.), requiring Engel to pay $11,758,030.58. The SEC’s litigation was led by Daniel Blau and supervised by Douglas M. Miller of the Los Angeles Regional Office. The SEC’s investigation was conducted by Tamar Braz and Dora Zaldivar and supervised by Marc Blau. The SEC acknowledges the assistance of the Israel Securities Authority.