Daniel Lorentz’s Decima company has taken control of Cohan Properties, a U.S. real estate firm that raised approximately $412 million (roughly 1.5 billion shekels) from Israeli investors earlier this year. The takeover follows allegations that the company’s controlling shareholder unlawfully diverted funds, triggering what sources describe as a significant crisis for the Israeli investors who backed the venture.
Cohan Properties had made headlines shortly after its fundraising round when reports emerged that the controlling shareholder had taken company money without authorization. The seizure of control by Lorentz’s Decima represents an attempt to stabilize the troubled company and protect remaining assets. However, the move is unlikely to ease concerns among Israeli investors who committed substantial sums to what was presented as a promising American real estate opportunity.
A Track Record of Losses
Lorentz’s involvement in Cohan Properties is notable given his recent history with Israeli securities regulators. In a previous enforcement action, Israel’s Securities Authority (ISA) sanctioned Lorentz after his investment vehicle, Decima, suffered millions of shekels in losses through failed short-selling positions in Tesla stock. Those losses were borne by Decima’s Israeli investors, raising questions about oversight and risk management at the firm.
Short selling—betting that a stock’s price will fall—is an inherently risky strategy that can produce outsized losses if the market moves in the opposite direction. In Decima’s case, the Tesla positions apparently went badly wrong, resulting in regulatory action against Lorentz. The ISA’s enforcement demonstrated concern about how investor funds were being managed and the disclosure of risks associated with such aggressive trading strategies.
Background: Israeli Investment in American Real Estate
Israeli investors have long been active in American real estate markets, viewing U.S. property as a stable, dollar-denominated asset class. Companies like Cohan Properties have successfully marketed themselves to Israeli institutional and individual investors seeking exposure to American commercial and residential property sectors. The $412 million raised by Cohan Properties in early 2026 represented significant Israeli capital flowing into the U.S. real estate sector.
The Israeli Securities Authority, established in the 1990s and headquartered in Tel Aviv, regulates securities markets and investment firms operating within Israel’s jurisdiction. When Israeli investors place money with local investment vehicles that then deploy those funds internationally, the ISA retains authority to investigate misconduct and impose sanctions on fund managers and company officers. The regulatory framework is designed to protect Israeli citizens’ savings from fraud and mismanagement.
Questions About Oversight
The takeover by Decima raises immediate questions about how Cohan Properties’ internal governance failed to prevent alleged misappropriation by the controlling shareholder. Israeli investors will likely demand clarity about what safeguards—if any—were in place to monitor fund usage and protect against unauthorized transfers. The circumstances suggest either a breakdown in oversight mechanisms or an absence of meaningful checks on the controlling shareholder’s authority.
Questions also persist about due diligence conducted before the fundraising round. Did Israeli investors and their advisors fully understand the governance structure and the extent of the controlling shareholder’s unilateral authority? Were there independent board members or investor protections built into the deal structure? These questions will be particularly urgent for large institutional investors who committed significant capital.
What Comes Next
Decima’s takeover suggests an attempt to stabilize Cohan Properties and potentially recover misappropriated funds, but the path forward remains unclear. Whether Lorentz can successfully manage the troubled company and restore investor confidence will largely depend on his ability to account for missing funds and demonstrate renewed operational discipline. Given Lorentz’s regulatory history, some investors may question whether his stewardship provides sufficient assurance.
Israeli investors who committed to Cohan Properties will be watching closely for updates on the alleged misappropriation investigation and any recovery efforts. The case underscores the risks of deploying capital through overseas investment vehicles and the challenges of enforcing governance standards across jurisdictions. It may also prompt the Israeli Securities Authority to revisit its oversight of Israeli firms managing foreign investment, particularly given Lorentz’s prior sanctions history.
Source: Globes — Translated and expanded by Israel Daily Journal
