Police car 370.
(photo credit: reuters)
Eran Mizrahi, a major investment fund manager also known as “the Israeli
Madoff,” was sentenced to 12 years in prison on Thursday for a NIS 57 million
fraud and Ponzi scheme.
Mizrahi was also fined NIS 300,000 and must pay
NIS 258,000 to victims.
The state had requested a longer sentence of 15
years and a larger fine, but reportedly, only a lawyer for Mizrahi indicated a
desire to appeal the punishment to the Supreme Court.
From 2007 to May
2012, Mizrahi ran a scheme in which he received investors’ funds, spent or
invested the funds in an illegal manner and lied to investors telling them the
results were much better than they were in order to get more funds from his
He eventually lost enough of the funds to be unable to operate
and to get arrested under suspicion for committing financial
During the course of the case, victims testified about the havoc
that Mizrahi’s scheme, in which most of the embezzled funds were eventually lost
completely, wreaked on their lives.
Mizrahi was convicted in April on 84
counts of embezzlement under aggravated circumstances, 101 counts of aggravated
forgery, money-laundering and theft.