Articles ZEK Secures Major Trial Victory in High-Stakes Fraud Case June 4, 2025 The Supreme Court holds that Judgment Debtor perpetrated a fraud by filing fake deeds following a loan default New York, NY — ZEK, a full-service New York-headquartered law firm, achieved a significant courtroom victory on behalf of its client, Valley National Bank ("VNB"), with a decisive trial verdict confirming that a guarantor engaged in a fraudulent scheme to shield assets from collection of his companies' debts. In Valley National Bank v. Sami Itshaik, et al., led by litigation partner Bruce S. Goodman, a member of ZEK’s Israel Practice Group, and supported by Yevgeniy Kats, the firm successfully convinced the Supreme Court of the State of New York, Kings County, that defendant, Sami Itshaik, fraudulently attempted to transfer two Brooklyn properties out of VNB's reach. Over several years, VNB extended $4.7 million in loans to four companies Defendant owned, with his personal guaranty. Central to VNB’s lending decision was Defendant's repeated representations that he individually owned two Brooklyn properties. However, following his companies' default—triggering his personal guaranty—Defendant filed backdated “correction deeds,” claiming that the properties had been transferred to family trusts nearly two decades earlier, in 2003. These filings, made only months after the defaults, contradicted years of representations and were never previously disclosed to VNB. Despite obtaining judgments exceeding $5 million against Defendant, VNB faced resistance when seeking to enforce them against the properties. Defendant claimed he did not own them—the trusts did. Following a trial in April 2025, the Supreme Court found in VNB's favor, concluding that the correction deeds were fraudulent under New York’s Debtor and Creditor Law § 273. In a comprehensive written decision, the Court found Defendant had “caused the creation of fake correction deeds… with the intent to avoid payment of the loans,” and declared the deeds “void and of no effect as to the debts owed to Valley National Bank.” The Court credited the testimony of VNB’s witnesses as “credible,” and flatly rejected the defendant’s account as “not credible.” “This ruling sends a clear message,” said Mr. Goodman. “New York’s fraudulent transfer statute is a powerful tool for lenders seeking to hold guarantors accountable when they try to evade their legal obligations through deceitful asset transfers.” This case underscores ZEK’s commitment to aggressive, strategic advocacy in complex financial disputes—and its ability to deliver results when the stakes are high. Related Services: Litigation, Banking Litigation, Fraud Litigation
ZEK Secures Major Trial Victory in High-Stakes Fraud Case June 4, 2025 The Supreme Court holds that Judgment Debtor perpetrated a fraud by filing fake deeds following a loan default New York, NY — ZEK, a full-service New York-headquartered law firm, achieved a significant courtroom victory on behalf of its client, Valley National Bank ("VNB"), with a decisive trial verdict confirming that a guarantor engaged in a fraudulent scheme to shield assets from collection of his companies' debts. In Valley National Bank v. Sami Itshaik, et al., led by litigation partner Bruce S. Goodman, a member of ZEK’s Israel Practice Group, and supported by Yevgeniy Kats, the firm successfully convinced the Supreme Court of the State of New York, Kings County, that defendant, Sami Itshaik, fraudulently attempted to transfer two Brooklyn properties out of VNB's reach. Over several years, VNB extended $4.7 million in loans to four companies Defendant owned, with his personal guaranty. Central to VNB’s lending decision was Defendant's repeated representations that he individually owned two Brooklyn properties. However, following his companies' default—triggering his personal guaranty—Defendant filed backdated “correction deeds,” claiming that the properties had been transferred to family trusts nearly two decades earlier, in 2003. These filings, made only months after the defaults, contradicted years of representations and were never previously disclosed to VNB. Despite obtaining judgments exceeding $5 million against Defendant, VNB faced resistance when seeking to enforce them against the properties. Defendant claimed he did not own them—the trusts did. Following a trial in April 2025, the Supreme Court found in VNB's favor, concluding that the correction deeds were fraudulent under New York’s Debtor and Creditor Law § 273. In a comprehensive written decision, the Court found Defendant had “caused the creation of fake correction deeds… with the intent to avoid payment of the loans,” and declared the deeds “void and of no effect as to the debts owed to Valley National Bank.” The Court credited the testimony of VNB’s witnesses as “credible,” and flatly rejected the defendant’s account as “not credible.” “This ruling sends a clear message,” said Mr. Goodman. “New York’s fraudulent transfer statute is a powerful tool for lenders seeking to hold guarantors accountable when they try to evade their legal obligations through deceitful asset transfers.” This case underscores ZEK’s commitment to aggressive, strategic advocacy in complex financial disputes—and its ability to deliver results when the stakes are high. Related Services: Litigation, Banking Litigation, Fraud Litigation