A 35-year-old former Fairfax District resident has been charged with wire fraud for an alleged scheme in which he defrauded investors out of millions of dollars by promising them stakes in a security camera business and real estate ventures in Israel.

Many of the victims are members of the Orthodox Jewish community, federal authorities said.

The defendant, Yossi Engel, fled to Israel in March 2021 but temporarily returned to Los Angeles last month. He was arrested at Los Angeles International Airport on March 8 as he was attempting to leave the country, authorities said. He remains in custody pending a detention hearing on March 16. An arraignment hearing for Engel is scheduled on April 13.

Engel is accused of making false statements and using forged documents to persuade victims to invest or loan money to him for iWitness Tech Inc., a purported Hancock Park-based security camera company in the 300 block of North La Brea Avenue. Engel also allegedly used false information to generate investments in properties he falsely claimed to own in Israel.

Prosecutors said Engel allegedly used connections to defraud victims from the Orthodox Jewish communities in Los Angeles and New York. The alleged crimes occurred from September 2018 through January 2021.

Engel allegedly asked for short-term loans for iWitness’ business expenses, telling investors he planned to use the money to purchase and install security cameras for customers. He also allegedly promised high rates of return ranging from $15,000 to $1.3 million. The two-week to six-month loans would purportedly provide investors with 10% to 60% annualized interest, according to an affidavit filed with the criminal complaint. Engel allegedly showed investors copies of fake invoices for work supposedly conducted by iWitness.

Prosecutors said Engel misrepresented the amount of business iWitness conducted, stating it was far greater than it was. At times, iWitness employees waited to be assigned for work while Engel slept, the affidavit read.

Engel also allegedly claimed that he owned and was developing real estate in Israel, telling victims that he needed money for redevelopment work, and falsely promising he would sell the properties and share profits with investors. Engel showed victims a video depicting himself socializing with the mayor of Bnei Brak, Israel, and claimed to have met with the mayor about real estate projects in the city, according to the affidavit. Prosecutors said Engel did not have a close relationship with the mayor and did not discuss real estate ventures with him.

Engel is accused of using money generated in the scheme to fund personal expenses such as flights on private jets and visits to casinos. He also allegedly used money from new investors to pay older investors, a common practice in Ponzi schemes.

The FBI estimates investors lost approximately $5 million. Engel faces 20 years in federal prison if convicted in the criminal case. The United States Securities and Exchange Commission is also suing Engel, alleging he used his ties in the Orthodox Jewish community to perpetuate a multimillion-dollar million affinity fraud. That lawsuit is pending and the FBI investigation remains open.