The Israel Securities Authority on Monday revealed that it recommended the Tel
Aviv District Attorney indict IDB controlling shareholder Nochi Dankner, as well
as securities traders Itay Strum and Adi Sheleg, for alleged share
The investigation opened in November over events that took
place during a February 2012 IDB share offering, when Dankner and the others
allegedly worked to artificially inflate the share price.
In July, the
ISA turned the case over to the Tel Aviv District Attorney at the State
Following an examination of the evidence, the district
attorney on Monday allowed the ISA to reveal publicly its belief that the
evidence suggests the suspects committed corporate fraud and breach of trust and
Though the ISA believes there is enough evidence for an
indictment, it is now up to the Tel Aviv District Attorney’s Office to decide
whether it agrees.
In response to the report, Dankner’s office stated:
“As is customary and accepted, we are awaiting the district attorney’s decision,
and believe it will be decided that no flaw will be cast on Nochi Dankner’s
The investigation alleges that IDB shares rose to unusual
heights on days that Strum and Sheleg bought shares at inflated prices,
allegedly at Dankner’s behest and with his funding.
The possibility of an
indictment adds another worry to Dankner’s laundry list of troubles.
tycoon has been dodging bullets to try to maintain control of his company, as
disgruntled bondholders push forth in their efforts to oust him.
accordance with court orders, he has sold Clal Insurance and posted nearly a
halfbillion shekels to a trustee account as a down payment on an impending deal
with Alexander Granovsky, a Jewish Ukranian investor.
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