Israel Securities Authority chairman Shmuel Hauser today sent the IDB Holding Corp. Ltd. investigation file to the Tel Aviv District Prosecutor (Taxes and Economics), following the completion of the Securities Authority's investigation.
The open investigation of the suspects, IDB chairman Nochi Dankner, Itay Strum, and Adi Sheleg, began at Hauser's order in December 2012, following the confidential investigation by the Security Authority's Investigations, Intelligence and Market Surveillance Department. The department investigated suspicions of securities fraud, reporting violations, fraudulent receiving, fraud and breach of trust at a company, money laundering, obstruction of justice, and witness tampering.
The Securities Authority investigated the events surrounding IDB Holding's offering in February 2012, in which Dankner used Strum, the co-owner of ISP Financial Services Ltd. with Sheleg, to fraudulently influence IDB's share price in order to improve the chances of success of the offering and its price.
Dankner allegedly sought to secure financing for ISP for this purpose, and subsequently participated in the fraud scheme, both personally and via other persons whom he directed to ISP in the trading days in which the fraud transpired. The objective was to buy IDB shares from ISP in order to inject capital to further the scheme, which totaled tens of millions of shekels.
Dankner was released with conditions, his passport was confiscated, and he has to obtain court permission for any foreign travel. He also deposited millions of shekels in guarantees.