A group of Palestinian Americans is suing Joseph Abruzzo, the clerk of the circuit court and comptroller for Palm Beach County, Florida. They argue that his decision to invest over $700 million of county funds in Israel bonds is reckless and supports Israel’s military actions in Gaza against Hamas.
Abruzzo has allocated about 15% of the county’s funds to Israel bonds, making Palm Beach County the largest purchaser of these bonds since the conflict began on October 7.
The plaintiffs claim that Abruzzo’s investment strategy violates state and county laws that require public funds to be managed prudently and without ideological bias. They allege that Abruzzo ignored financial warnings about Israel’s ability to repay its debts, driven by his political support for Israel.
Abruzzo, however, stands by his decision, stating that the investments are legal and have brought $172 million in interest to the county. He dismissed the lawsuit as “frivolous” and insists that the county’s portfolio is well-diversified and secure.
The lawsuit, filed on May 15, references a Jewish Telegraphic Agency article that raised concerns from finance experts about the risks of concentrating taxpayer money in one type of investment. While Israel bonds were traditionally sold to Jews in the Diaspora, their high yields have recently attracted a wider range of investors, including many local and state officials.
The plaintiffs, three anonymous Palestinian-American residents of Palm Beach County, fear harassment and reprisals. One of them reported losing 37 family members in Gaza and suffering from PTSD, anxiety, and depression, feeling distressed that his tax dollars might be supporting the conflict.
This lawsuit highlights how the American court system is being used by both sides of the Israel-Palestine conflict to further their causes, amid a trend of increasing purchases of Israel bonds by U.S. entities.