Keren Or: The court sentenced Hilik Tapiro – the capital market – to 5 years in prison

The Tel Aviv District Court today sentenced Yechiel Tapiro and Adv. Amir Birman, who are accused in the Keren Or case. The two were convicted of investor fraud, illegal investment, false representations and use of funds for uses that did not match the goals presented to investors. The judge sentenced Kabov to 5 years in prison, while Birman was sentenced to 3 years in prison

According to the verdict, between 2012-2014, the defendants raised about NIS 80 million, from about 500 investors as part of a joint venture aimed at raising funds and investing in financing TMA 38. The company made various and varied uses of funds that significantly exceeded the presentations presented to investors. The company used about half of the investors’ money to meet its obligations to previous customers until it reached a balance and sufficient income from its investments;
To private companies owned by the controlling shareholders; For the purchase of apartments in the name of the controlling shareholders; Loans to associates, without agreement and low interest; Investing funds in a hedge fund owned by one of the controlling shareholders; Payment of attorneys’ fees for representing the company and one of the controlling shareholders.

Accordingly, in the first charge, the defendants were convicted of offering and selling to the public securities without a prospectus. In the second and third charges, the defendants were convicted of hundreds of offenses of receiving anything fraudulently under aggravated circumstances. The company was convicted in a plea bargain in the three charges attributed to it in the indictment.

The Securities Authority wrote in response to the decision that “the authority considers the severe punishment against criminals in the capital market an important tool to strengthen deterrence. The Intelligence and Trade Control Department continues to conduct complex investigations, including in the field of attracting investors without prospect “The Securities Law and the Penal Code. Along with the activities of the supervision and enforcement units, the Authority is working to increase awareness among the public of the dangers involved in unsupervised investment projects.”