Former Israel Police Commissioner Rafi Peled was today convicted by the Tel Aviv District Court on two counts of fraud and breach of corporate trust when he managed Peled-Givony Ltd., a cluster of public companies.
"Peled breached the trust of public companies when he was their chairman with his private relationship with Tal Jaegerman, allowing him to do as he pleased at the companies," said Judge Chaled Kabub in his verdict. He added, however, that Peled personally pocketed no money.
Peled's co-defendants, Jaegerman, Arie Givony, and David Wahabi, who with Peled jointly controlled Peled-Givony, were also convicted of fraud, misleading investors, and theft by management, a more serious charge which Peled was not convicted of.
The Peled-Givony affair was uncovered in 2002, following the collapse of a cluster of public companies, which were acquired by a group of investors headed by Peled, Givony, Wahabi, and Jaegerman. The bankrupt companies left NIS 800 million in debts. The Israel Securities Authority opened an investigation and raided Peled-Givony’s offices on suspicion of misleading investors. The Securities Authority charged that the financial reports of subsidiaries, including Feuchtwanger Industries, were no published in order to conceal the removal of millions of shekels from them and their transfer to Peled, Givony, and other investors.
Published by Globes [online], Israel business news - www.globes-online.com - on December 26, 2012
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