The Economics Department of the State Prosecutor’s Office on Monday filed an
indictment in the Tel Aviv District Court against investment manager Eran
Mizrahi of Savyon, accusing him of defrauding investors of NIS 45 million and
laundering NIS 250m. He was indicted on 96 counts, including stealing from
clients, aggravated fraud, writing checks with no coverage, aggravated forgery
of a document, use of a forged document and transactions in banned property as
defined by the Prohibition of Money Laundering Law (5760-2000).
indictment states that Mizrahi received from the victims, through aggravated
fraud, on the basis of false representations and claims that he made to them,
NIS 45m. He allegedly forged documents and used them to reassure the victims and
to obtain permission to continue to hold their money without them demanding it
back. He allegedly stole the money he was authorized to hold, using it for
personal purposes in contravention of the purposes for which he was given it. He
allegedly used banned property and provided false details to prevent the banks
from reporting to the authorities about the real activity in the
The indictment states that, between 2007 and May 2012, Mizrahi
made false presentations and claims to many persons, with the intent to defraud
them and steal large amounts of money. During the period stated in the
indictment, Mizrahi owned Eran Mizrahi Financial Investments Ltd.
October 6, he changed the company’s name to Citadel Investments & Finances
Ltd. and presented himself to many people as the owner of a successful
investment company that specialized in foreign-currency investments and advising
clients in the foreign- currency market through top Swiss banks.
allegedly falsely represented that he created regular high yields for his
clients through a conservative investment profile, while falsely promising that
their money would be invested in foreign-currency investment instruments at a
Swiss bank, including occasional special investment instruments.
practice, during the period relevant to the indictment, Mizrahi did not invest
his clients’ money in foreign currency, as agreed and falsely declared, but
pocketed it. He fraudulently won the victims’ trust, presenting himself as an
expert in foreigncurrency investments who achieved high yields. To show off his
success, he drove luxury cars, lived in a luxury apartment and invited some
clients to restaurants, paying for everything with the money he fraudulently
obtained from his victims.
The aggravated circumstances of Mizrahi’s acts
arise from the large number of victims he defrauded during the period, the fact
that some of the victims were relatives or close friends, the large amounts of
money he obtained through fraud and which he stole and the use of false
documents for the purpose of defrauding the victims, all while exploiting their
confidence in him, according to the indictment.
Mizrahi defrauded, among
others, 68-year-old pensioner Ita Gelbert, who suffers from Parkinson’s disease,
wiping out her NIS 590,000 in savings, the indictment said. In another case,
Mizrahi “defrauded his aunt, Sophia Azeri, by using a false representation to
persuade her to sell her apartment and transfer NIS 600,000 to him,” it said.
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