Israel court orders foreclosure of Jaffa's Scientology bldg

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Israel court orders foreclosure of Jaffa's Scientology bldg

Post by Sponge » Tue Sep 20, 2011 4:43 am

Israel court orders foreclosure of Jaffa's Scientology building
Foreclosure follows petition by N.N. Salati Engineering and Projects Management,
which Last week filed a NIS 7.6 million suit against Gur Finkelstein and the Scientology movement.

Haaretz 20th Sept 2011
http://english.themarker.com/israel-cou ... g-1.385466
and at Jew Press International http://www.jewpi.com/israel-court-order ... -building/
The Scientology building in Jaffa is being foreclosed, the Tel Aviv District Court ruled on Monday. The historic Alhambra cinema building belongs to the international Scientology movement through trustee Gur Finkelstein, who is suspected of attempted murder.

The foreclosure followed a petition by N.N. Salati Engineering and Projects Management. Last week, N.N. Salati filed a NIS 7.6 million suit against Finkelstein and the Scientology movement. According to the suit, the defendants commissioned the company to build a four-floor, 6,000 square meter building at the site and to renovate the 1936 cinema building last year, but paid it for only part of the work.


N.N. Salati says that in September 2010, it signed a contract to renovate the building for NIS 13.5 million, excluding VAT, but was paid only NIS 11.6 million. In addition, a fire broke out in the building that October, and N.N. Salati signed a NIS 5 million contract to repair the damage. In this case, too, it was paid only NIS 2.2 million. It also says it is owed NIS 2.25 million for constructing the four-floor building.

Finkelstein was arrested in April on charges including attempted murder and assault, and was indicted in May. Police believe he has ties to a gang plotting to kill a Jaffa sheikh and blame right-wing movements for the crime.

The suit and foreclosure order reveal that Finkelstein is the theater's trustee, and that the land registry (Tabu ) includes a note stating that the asset is actually owned by the international Scientology movement. N.N. Salati says it has not been able to collect its money due to both Finkelstein's detention and the international movement's attempts to evade it.
1 NIS = 0.27 US $

Previous threads on the happenings surrounding the Jaffa Org.........
May-July 2011: Mobsters, Israel, Scientology, Bombs
viewtopic.php?f=11&t=35364
Oct 2010: new Israel Ideal Org building set on fire. Arson suspected
viewtopic.php?f=11&t=32971

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Re: Israel court orders foreclosure of Jaffa's Scientology b

Post by Ardiva » Tue Sep 20, 2011 4:46 am

Sounds good to me..;-)

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Re: Israel court orders foreclosure of Jaffa's Scientology b

Post by brownjedi » Wed Sep 21, 2011 1:01 am

It would appear that foreclosures at COS buildings are at an all time high

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Re: Israel court orders foreclosure of Jaffa's Scientology b

Post by Sponge » Wed Sep 21, 2011 1:35 am

brownjedi wrote:It would appear that foreclosures at COS buildings are at an all time high
It's going to be interesting to see how this gets spinned. DM has to be able to get up in front of a large(ish) mostly European audience at the IAS event at Saint Hill in october and claim that scientology is expanding like mad.
The conversations at the dining tables must be enlightening as they compare notes about the reality of each other's idle orgs. That is if they can, for one moment, stop competitively lying to themselves and each other.

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Re: Israel court orders foreclosure of Jaffa's Scientology b

Post by Sponge » Wed Sep 21, 2011 4:13 am

Couple of pieces of info via WWP:
http://forums.whyweprotest.net/threads/ ... st-1891348
Bozuri, posting on WWP, wrote: OK, some more info from the Hebrew sites. Scientology hired a lawyer to represent it in the case, his name is Aviram Goldstein from this law firm: http://www.ig-law.co.il/ They appear to be legit and mainly deal with taxes and real estate.

On top of that there is one report saying that Gur Finkelstein was actually registered as the owner of the building for the future Ideal Org. Another article says that he was only the entrepreneur. The forclosure order is just temporary. The order was issued against Finkelstein himself and the International Corporation of Scientology.

Unfortunately the order is not online, neither is the filing.
Bozuri, posting on WWP, wrote: Mystery solved - the Ideal Org building was bought by the internatinal scientology fund [or something like that] which in turn created a trusteeship with Finkelstein as the trustee. I know that Scientology has been denying that Finkelstein is a Scientologist, but somehow I doubt they'd appoint a trustee who is not one of their own.

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Re: Israel court orders foreclosure of Jaffa's Scientology b

Post by Sponge » Thu Dec 29, 2011 3:14 pm

In one of the stories inside the Village Voice scientology stats update today, a strange turn has occured in the foreclosure case

29th Dec 2011
http://blogs.villagevoice.com/runninsca ... gy_goe.php

Story #2: Another win for Scientology, this time in Israel

We wrote last month about Naif Salati, the Arab Muslim contractor who is suing Scientology over its big "Ideal Org" project in Jaffa, Israel. Salati was hired by Gur Finkelstein, an attorney who represented himself as the sole owner of the run down Alhambra cinema in Jaffa, but who turned out to be a front for Scientology as it had the building restored to its 1930s glory. Finkelstein asked Salati to engage in a kickback scheme, and then ended up facing arson and murder charges in a wild series of events.

Salati, meanwhile, finally learned that it was Scientology who had hired him to renovate the building, but asked for a temporary foreclosure order on the property while he is still owed money, and sued Scientology.

We learned this week, however, that a pre-trial judge has vacated Salati's foreclosure order and awarded Scientology a foreclosure order on the assets of Salati Engineering in the amount of 6.5 million shekels. (This is not an order to pay; it's a claim on monies that may become at issue later in a trial.)

This reversal, the judge said, was warranted because Salati had engaged with Finkelstein in the kickback scheme, defrauding Scientology. The judge also ordered Scientology's entity in this case, Scientology International Reserve Trust, to post additional guarantees in the amount of 300,000 shekels.

Salati's attorney, Eitan Erez, is appealing the ruling, saying that the pre-trial judge made many mistakes. For example, Scientology claims that Salati didn't finish the job, leaving the building a mess. But Eitan has submitted a video we showed here at Runnin' Scared that came from Scientology's October meeting of the International Association of Scientologists. In that video, church leader David Miscavige can be seen boasting about what an amazing renovation job was done on the building, and that it is ready for business.

Thursday's Stats: Upstat or Downstat? Once again, Scientology's stalwart legal corps scores another victory and another upstat for the church. As we said in our previous story about him, Erez is a man who won't back down easily, and we expect him to pursue his appeal vigorously. We'll keep you updated.
Previous related material:
Scientology in Israel: Arson, Attempted Murder, Foreclosure, General Paranoia -- And a Visit by the Voice!
viewtopic.php?p=415046#p415046

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Re: Israel court orders foreclosure of Jaffa's Scientology b

Post by Sponge » Fri Dec 30, 2011 3:06 am

....more on the above....

A translation of the appeal dox....

TA 18382-09-11, NN Salati Engineering and Project Management Lted and brothers v. Finkelstein (detained) and others

Judge: Hagai Brenner

Applicant and Respondent
v.
Respondent and Applicant
Scientology International Reserve Trust

1. Before me there are two claims of the parties to cancel the foreclosure orders that were imposed on the assets of both parties.

2. The Claimant (Applciant) is N.N. Salati which is a construction company.

3. The respondent is Scientology International Reserve Trust, which is the monetary trust of the International Scientology Organisation, Organisation which unites the believers in the doctrine of Scientology (the "Trust").

4. In the heart of the conflict is the renovation of the Alhambra theather in Jaffa that was conducted by Salati. The works were done based on the contact signed between the parties on 19.9.2010 between Salati and Attorney Gur Finkelstein, which served as a trustee of the Trust. It is noteworhty that the building is registered in the land registry in the name of attorney Finkelstein, however, based on the trusteeship agreement between Finkelstein and the Trust, the ownership on the building belongs to the Trust . Attorney Finkelstein was arrested by the Israeli police in April 2011 on the suspicion that he ordered the arson on the building and an assassination attempt. He has been charged based on these allegations and is currently detained until the end of legal proceedings against him.

5. Salati claims that it is entitled to 7 609 133 for the works that it conducted in the building, for which it was only partially paid. This sum is comprised of additions to the contract and from the debt incurred for the repairs conducted after the arson.

6. The Trust requests to impose foreclosure on Salati's property, as it argues Salati owes it no less than 12 000 000 shekels, however for the purposes of jurisdiction, it only requests the sum of 8 000 000. The 8 000 000 are comprised of "blowing" the contract to reflect the kickback sheme between Finkelstein and Salati in order to defraud the Trust and for the works that were paid for but never implemented.

[Boring legal stuff.]

Para. 18

The parties agree that when the tender for the Jaffa Org was held, the offer of Salati Engineering was 12 200 000 shekel + VAT. There is no disagreement that Gur Finkelstein asked Salati to add 25% to this offer, without any justification, when the contract was signed. It was also agreed by Finkelstein and Salati that that latter would transfer the 25% in cash to Finkelstein. Consequently, the final agreement that was singed was for 14 724 000 shekel plus VAT. The same happened with the second contract that was singed between Finkelstein and Salati for the sum of 4 000 000. Naif Salati himself admitted that he transferred to Finkelstein sums of money.

19. Naif Salati claimed in his defence that he did not know that Finkelstein worked as a trustee of the Trust. We hold that this argument should be rejected because the claimant, i.e. Salati, admitted that Finkelstein told him that he was representing the trust. Accordingly, Salati should have know that the transfer of money to Finkelstein is fraud towards the Scientology Trust. On top of that, Salati's argument is not credible, since there is no legitimate reason for the person who ordered the job to "blow" the sum of the contract, only in order to get his own money back. Furthermore, this kickback sheme creates additional income for the contractor which is not registered in his books, because Naif Salati paid Finkelstein in cash, without any receipts. In such circumstances, Naif should have understood that these deeds were meant to defraud the Scientology Trust. Even if it will be proven that the Trust was negligent in supervising Attorney Finkelstein, it does not release Salati from his responsibility in participating in the fraudulent activities.

20 + 21. The Trust argues damages in the amount of 2 972 170 shekels for the payments that were made to Salati above the sum that was approved by the building inspector of the Trust. Salati responded by stating that it was paid more than the inspector approved, but less than what it deserved in practise. The parties agree that Salati was paid 14 778 370 shekels, despite of the fact that the Trust building inspector only approved the payment of 11 806 200. However, Salati claims that this sum of 14 778 370 contains the payment for the elevators that it paid for by itself and that cost 604 911 shekels. Monika Aslanis that was deposed on behalf of the Trust, confirmed that 604 911 was paid to Salati for the elevators. However, this only helps Salati's argument to a small extend, because it doesn't explain the entire difference between 14 778 370 and 11 806 200, but only makes the difference smaller by 604 911.

22. Consequently, the Scientology Trust's argument whereby it overpaid Salati the sum of 2 450 695 stands.

23. The result is that the Trust established that Salati owes it 6 450 695 shekels (4 000 000 for the fraud + 2 450 695 for over payments beyond what was approved by the inspector).

24. Now we'll turn to Salatis' monetary claims against the Trust.

25. As previously stated, the foreclosure on the Jaffa Org on behalf of Salati was limited to the amount of receipts that were approved by the Trust for the overall sum of 2 512 755, based on receipts 33, 34 and 35. Accordingly, even if I were to assume that the Trust owes Salati this sum, in the overall balance, the Salati still owes the Trust 3 937 940 shekels. This would suffice to keep the foreclosure in favour of the Trust on Salati's property and to cancel the foreclosure in favour of Salati on the property of the Trust.

26. However, it turned out that receipts 33, 34, 35 were not approved for payment by the inspector of the Trust, Gil Winels [can be spelt differently in English. Vinels, Vinles, Winles and so on].

27. The first receipt for the sum of 126 440, was never approved for payment. What was approved was the offer of payment [not sure how to say in English. When one party offers a price and the other accepts]. However, what matters is the bill submitted for final payment after the job is finished, as opposed to the offer which is given before the actual job is done. It is not clear when the actual job was completed. In any event, it's not enough to serve as the basis for the foreclosure in favour of Salati.

28. Receipts 34 and 36 were signed by the architect Yair Matalon that was hired to work on this project by the Trust. However, I was not shown any evidence that he was given the authority to approve the payment of any bills. The mere fact that he signed on the receipt does not constitute sufficient evidence for foreclosure. The authority to approve the payment was given to Vinels, and him only.

29. I'm not stating that Salati is not entitled to the payment of sums listed in receipts 33, 34, 36, I'm just stating that without the signature of Vinels, Salati has not succeeded to show credible evidence that would suffice to order a temporary foreclosure. The fact that Aslanis confirmed in her evidence that she approached inspector Vinels and asked him to confirm the payment for the works that Salati did in the three last months of him working on the project, is not enough. What matters is what was approved de facto/in reality by the authorised party as listed in the contract and not what was asked from this authorised party. In addition, it is not clear from Ms. Aslanis' answers to which debt she was referring to in her answer, and whether she transferred to Vinels the receipts with a recommendation to approve them, or she just transmitted them to him as a technical act, in order for Vinels to check and decide based on his expertise whether to approve them.

30. It is rather possible that during the hearing of evidence in the course of the trial on the merits, after inspector Vinels and architect Matalon testify, that Salati would be able to establish the debt owed to it by the Trust, however at this stage of the proceedings, she was not able to do so.

31. Consequently - the temporary foreclosure that was imposed on the Trust in favour of Salati cannot stand. [is hereby cancelled].

32. I have also concluded that in the event I will not order foreclosure on Salati's property, the Trust would have difficulties in collecting money from him, in the event that the trial would conclude in Trust's favour. Naif Salati himself confirmed that Salati N.N. is currently is not working on any projects. In addition, Salati N.N. does not own any properties that could be sold in order to pay the debt to the trust, in the event they win the trial.

32. Consequently, while paying attention to the fact that the Trust does not own any other property in Israel apart from the building [Org in Jaffa], and given the fact that we're dealing with a foreign incorporation, while it's corporate structure is unclear to the court at this stage it is appropriate to stenghten the guarantees that were a pre-condition for the imposition of foreclosure on the property of Salati. At the time, the temporary foreclosure was granted under the condition that the Trust posts 200 000 shekels worth of guarantees. It my view, currently, the Trust should post additional guarantees in the amount of 300 000 shekels, and to attach guarantees of two individuals whose gross monthly salary is no less than 15,000 shekels. The overall sum of guarantees would stand at 300 000 shekels. It is possible to convert personal guarantees to bank guarantees. The guarantees need to be posted within 14 days.

33. Accordingly, I hereby order that the foreclosure on Salati's property would stand in the amount of 6 450 695 shekels.

34. Foreclosure imposed on the Trust's building [Jaff Org] are hereby cancelled. This part of the decision will be issued witin 10 days.

35. Salati would pay the Trust legal expenses at the amount of 5000 shekels.

36. The Secretariat would send this decision to the parties.


==============
Thanks to Bozuri on WWP for the above....
ref: http://forums.whyweprotest.net/threads/ ... st-1998370
also with a summary...
Bozuri, posting on WWP wrote:Just a quick summary of appeal:

- SIRT is not incorporated in Israel and has no legal personna to appear before court;

- SIRT, while being nothing more than a trust, is not allowed to own a building, until it is propery registered in Israel ;

- No documents were presented before the court that reveal the nature of SIRT's trust or corporation;

- SIRT has no legal address in Israel, it only uses the address of its counsel;

- Scientology calls itself a Church and a religion abroad, accordingly law concerning relgious groups should apply to her;

- Neil Levin, that signed the guarantee on behalf of Scientology has not presented any documents that he is indeed the authorized person on behalf of the church to do so;

- Even if Naif Salati is found responsible for participating in fraud, he is not responsible for the entire debt, as Finkelstein was the driving force behind the fraud;

- Scientology's argument whereby Salati did not finish the works is incorrect, as demonstrated by Miscavige's speech and footage from the Org (new evidence).

- Third party rights in favour of Scientology were registered in the land registry three months after Finkelstein got arrested, in July 2011, when Salati was already expelled from the property. Hence, Salati could not have known beforehand that he was defrauding Scientology, as he thought the sole owner of the property was Finkelstein.

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Re: Israel court orders foreclosure of Jaffa's Scientology b

Post by Sponge » Mon Feb 27, 2012 10:20 am

This village voice article (previously posted in another thread) contains two stories. Scroll down for the second one which is about the Jaffa Idle org legal situation:

Scientology and Nation of Islam Exposed in Florida School Takeover; In Israel, Miscavige Shown to be a Liar by Own Attorneys
by Tony Ortega, Village Voice. 27th Feb 2012
http://blogs.villagevoice.com/runninsca ... _and_5.php
Meanwhile, in Israel, a new court document has Scientology arguing that its leader spoke lies to thousands of assembled church members.

[...]

Salati's attorney, seeing our item in December, filed with the court a copy of that video segment, saying that it proved that Salati had finished his work, contrary to what the church was saying in court.

However, now Scientology's attorneys have filed their answer, and they say the video isn't proof that Salati had finished his work. How do they know that? They admit that the images in the video were faked, and that the faked footage was used for the purpose of "donors."
"We are not dealing with a documentary as to whether the works in the building were completed or not completed. The clip was filmed for the purposes of being shown to the audience of donors and members and it is only natural that the shortcomings of the applicant's work were not shown," the court document reads (our translation is from the Hebrew). "In the course of the filming, areas of the building that were not completed were not filmed and the clip focuses on the areas which show the building in a flattering light. In addition, filters and lighting that improved the appearance of the building were used."

So, Scientology's attorneys now admit that the footage was faked, and that the building was not completed, nor was it open for business. But let's look again at what Miscavige said about it in October...

After taking us through several gleaming rooms, he concludes, as we see hundreds of staff members standing in front of the building...

"With more than 200 staff now manning our ramparts in this Holy Land, our new Church of Scientology of Israel."

Well, for the purposes of his lawsuit, that's no longer quite so true


[...more in article link...]
There's a recap in that article or you can scroll up this thread for previous detail.

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Re: Israel court orders foreclosure of Jaffa's Scientology b

Post by Don Carlo » Mon Feb 27, 2012 4:34 pm

(Where SIRT fits into CoS's organizational chart)

C H U R C H ------O F ------S C I E N T O L O G Y ------I N T E R N A T I O N A L--- ( C S I )
--------------------------------------------------|
INTEGRATED AUXILIARIES OF CSI THAT ARE TRUSTS & REAL ESTATE CORPORATIONS
___________________________________________________________________________________
-|-----------|------------|------------------|---------------------|-----------------------------------------------|
BMS T1---SPBI T3-----CSRT T5----------FST U1--------------SIRT V1 which contains SORS Ltd-----Inactive Trusts W1

KEY
Blue text = Staffed by Sea Org "All church organizations above the level of Class V are staffed by Sea Organization members." http://www.bonafidescientology.org/Chap ... page09.htm

FOOTNOTE FOR SIRT
V1. Scientology International Reserves Trust is a British integrated auxiliary of Church of Scientology International (CSI), from http://www.xenu-directory.net/documents ... 3-sirt.pdf . Full link =

Code: Select all

http://www.xenu-directory.net/documents/corporate/irs/1993-1023-sirt.pdf
SIRT absorbed International Scientology Films Trust and International SOR Trust. http://www.xenu-directory.net/documents ... ions-1.pdf . Full link =

Code: Select all

http://www.xenu-directory.net/documents/corporate/irs/1993-1023-csi-questions-1.pdf
, page 6 . SIRT has SOR Services Ltd. as a subsidiary, page 14, http://www.xenufrance.net/SUMMARY%20DES ... ATIONS.pdf . Full link =

Code: Select all

http://www.xenufrance.net/SUMMARY%20DESCRIPTION%20OF%20SCIENTOLOGY%20MEMBERSHIP%20ORGANIZATIONS.pdf
SOR is said to stand for "Sea Org Reserves."

This is part of CoS Organization Charts (first post is the chart; second post are the key and footnotes) at viewtopic.php?f=9&t=31561

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Re: Israel court orders foreclosure of Jaffa's Scientology b

Post by Sponge » Fri Mar 09, 2012 11:45 pm

Scientology: Told to Chill in Texas, and Another Embarrassing Admission in Israel
by Tony Ortega, Village Voice. 9th March 2012
http://blogs.villagevoice.com/runninsca ... gy_tol.php
[...]

We reported that Scientology's own attorneys, in a subsequent court filing, admitted that the video footage was actually faked for the benefit of "donors." We pointed out the stunning fact that Scientology's own attorneys were saying in a court document that Miscavige had pulled a fast one and had shown fake footage for fundraising purposes.

Well, now a newspaper in Israel, Yediot Tel Aviv, has published a story about this incident, under the headline "The Glamorous Video, Photoshop, and the Donors." (Heh.)

And we're thrilled to see that reporter Yoav Malka managed to get a response from Michael Deker of Yehuda Rave and Associates, the attorneys working for the church:

  • "Since we are dealing with a film that is meant to get donors, significant defects were concealed on purpose. Naturally, if the clip is for the donors, I will not show them the holes in the floor, urine and feces of Salati's workers left on the roof, and I will not show the electric cords that we had to remove because of the severe negligence of Salati."
[/color]

Well, the attorney can trash Salati all he wants, but every time he talks about concealing the truth for donors, a body thetan gets its wings.

We don't know if Salati will win his court case -- he's appealing a dismissal of his temporary foreclosure order by a district court -- but as long as he keeps getting admissions out of Scientology that David Miscavige is putting on dog and pony shows for the fundraising fun of it, well, we hope this case never ends.

[...more in article link...]

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