Debt Collectors Seize Bankrupt Boaz Yona’s Assets
The debt collection administrations have begun proceedings against former builder Boaz Yona, who hasn’t been paying compensation to home-buyers who were left without a roof over their heads or money in their pockets when his construction company Heftsiba collapsed. Yona was convicted in November 2008 on a numerous number of offenses, of that which included fraud, and theft, of that which left many apartment buyers without money and the home they paid for.
Yona meanwhile requested a leave from prison, a motion on which the authorities are not smiling. The authorities may also try to block his eligibility for an early release from prison for good behavior after serving two-thirds of his sentence. Heftsiba’s former chief executive and owner is serving a reduced seven-year sentence for his crimes, as part of a plea bargain.
Under the plea bargain, he agreed to pay victims NIS 4 million – an amount the court doubled in Yona’s final sentencing. The first NIS 4 million was deposited with the court before the plea bargain, and has already been paid out to dozens of families that constitute the core of Yona’s victims. But the former top executive has refused to pay the additional NIS 4 million he was ordered to pay within 60 days of his sentencing, and has appealed the sentence. The debt, meanwhile, has risen to more than NIS 4.2 million due to interest and fines.
About two weeks ago, Yona asked the Tel Aviv District Court to order the prison authorities to elaborate the reason he had been refused leave. His lawyer has sought to have the debt payments delayed, reduce the late fees and spread out the payments. The debt collection authorities rejected his request to delay the payments, but agreed to consider spreading them out.
A senior official says bank accounts and property belonging to Yona would be seized, although the chances of collecting the debt this way are slim because Yona is bankrupt. Nevertheless, the authorities will keep careful tabs on Yona’s debt repayment and prison leaves, as well as his appearance before the committee to decide on an early release for good behavior. This would prevent him from benefiting from prisoner’s rights until Heftsiba victims have been reimbursed.
Yona’s lawyer Yair Golan said earlier this week that Yona’s appeal of the additional NIS 4 million has yet to be heard. He added that the court was aware at the time of the sentencing that Yona was bankrupt, and that the debt could not be collected. Golan rejected the argument that Yona’s leave from prison would disturb his victims, saying there was no material reason to revoke a basic right of a prisoner whose behavior has been exemplary.
Mallory is employed by a debt collection agency. Also, she composes articles on business and finance, and collections. .
