The dispute in the Nakash brothers’ business empire over the Group’s Israel CEO Avi Hormaro has taken a dramatic twist. After reports that brothers Avi, Joe and Rafi are expected to dissolve their partnership after 50 years due to their ongoing disagreements over Hormaro, a complaint was filed in the US last week against him, claiming that he took tens of millions of dollars in rights for himself. The complaint was filed with the FBI offices in Miami, Florida, where many of the group’s companies are incorporated. “Globes” has learned.
The complaint, into which the FBI is expected to conduct a preliminary investigation, deals with the events at the heart of the proceedings that have been underway against Hormaro in the Tel Aviv District Court over the past year. It concerns a request for a derivative suit, filed by Avi Nakash’s trust on behalf of the companies managed by Hormaro, including the Yamit and Orchid hotels.
Avi Nakash claims in a lawsuit in Israel that Hormaro took rights worth “tens (if not hundreds) of millions of shekels” from the group’s companies, undertook transactions without approval, and acted in a conflict of interest. Recently, Judge Michal Agmon Gonen approved an increase of amount of the lawsuit to NIS 65 million. The lawsuit is supported by the opinion of Yehuda Barlev CPA, which is also at the heart of the complaint to the FBI.
In June 2024, Yonathan Nakash, Avi’s son who serves as a trustee in his father’s fund, filed a police complaint against Hormaro, alleging that he had fraudulently amassed assets worth tens of millions. In November 2024, the police announced that they had decided to close the complaint on the grounds of lack of public interest, and an appeal was subsequently filed against the closure.
Hormaro says in response to Avi Nakash’s claims that all of his actions were carried out legally and with the approval of the Nakash brothers. His lawyer said that these were “baseless, unfounded claims” and that Hormaro’s conduct has been “professional and impeccable.”
Joe and Rafi Nakash are backing Hormaro, and signed a settlement agreement with him in July 2024. According to the agreement, Hormaro transferred NIS 5 million to the group in addition to some of his rights in the group’s companies, and retained other rights. Hormaro currently continues to serve in his position with the support of Joe and Rafi Nakash.
The dispute surrounding Hormaro’s employment led to a mediation process conducted by the brothers in Miami. Following the failure of mediation, the group will soon enter the process of dissolving the partnership between the brothers regarding the businesses in Israel.
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The Nakash Group holds assets worth hundreds of millions of dollars in Israel and abroad. Among other things, the group owns Arkia Airlines and about 20 hotels in Israel and Europe. The brothers are also partners in the real estate and finance group Ampa, which controls the Eilat Port and which is currently planning an IPO on the Tel Aviv Stock Exchange (TASE) at a valuation of NIS 3-3.5 billion.
Adv. Ron Berkman, Hormaro’s attorney, said, “Avi Nakash’s current complaint is nothing more than another publicity balloon that has also been deflated in a short time. It became clear to Avi Nakash that the request for a derivative claim he filed is so unfounded that it is expected to be dismissed outright. In the past, he has already filed other frivolous complaints, and even then he ran to the media to tell his stories.
“Avi Hormaro continues in his position as manager of the Nakash Group in Israel after it became clear to Avi Nakash’s brothers that there is no basis to their brother’s allegations against Hormaro. Despite this, and in order to try to bring a ‘peaceful resolution’ to the group, a settlement was arranged that creates a reorganization of the holdings and rights and the elimination of all past claims and bad feeling. Avi Nakash is trying to thwart the agreement illegally in order to impose his positions, and his way of doing this is by continuing to persecute and harm the companies’ operations manager, Mr. Avi Hormaro.”
Published by Globes, Israel business news – en.globes.co.il – on April 7, 2025.
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