Months in jail and heavy files have been imposed in the securities fraud case at Melisron Ltd. (TASE: MLSR), a subsidiary of Ofer Investments Ltd., owned by Leora Ofer. Tel Aviv District Court Judge Chaled Kabub sentenced Ofer Investments CFO Golan Madar to twelve months in jail, nine months probation, and a fine of NIS 100,000 for securities fraud related to the expansion of Melisron's bond in 2009.
Eli Haelion, a bonds trader at Poalim Sahar, who was also convicted in the case, was sentenced to three months in jail, six months probation, and a fine of NIS 25,000 or four months in jail.
Ofer Investments and subsidiary Ofer Development and Investments Ltd., which were convicted of securities fraud, received the maximum penalties under the circumstances: both companies were fined NIS 1.01 million.
"The courts have made their position clear in the past few years on white collar crime," said Judge Kabub in the verdict. "Today, after Amendment 113 of the Penalties Law has come into effect, and in view of the severity of penalties for offenses in the capital market, with the intention of enforcing proper norms on all players in the market, the court is obliged to act in accordance with the legislature's order and impose penalties that fit the severity of the offenses and their circumstances, taking into account the damage these offenses caused the capital market, the public's confidence in it, and its ability to serve as a base for Israel's economic development."
According to the indictment, in November 2009, ahead of the issue of Melisron's Series D bond, Melisron and Ofer Investments CEO Avi Levy and Madar, bought bonds on the market in order to raise their price. The objective was to make the issue price more attractive than the market price and to improve the chances of the issue's success. Haelion was indicted for illegal trading.
In November 2013, Levy was acquitted of all charges in the case. Melisron was also acquitted of all the charges against it. They had been indicted for securities fraud and violations of reporting rules. However, Madar and Haelion, as well as Ofer Investments and Ofer Development and Investments were convicted of securities fraud and violations of reporting rules in the case of the expansion of Melisron's bond in 2009.
Published by Globes [online], Israel business news - www.globes-online.com - on January 26, 2014
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