The portfolio manager Harry Sapir, an Arad director, has also been arrested. The three are suspected of fraud, securities offences, and perverting the course of justice.
Shlomo Eisenberg, Binyamin Jesselson, and Harry Sapir were arrested today (Wednesday) by the Securities Authority, following recent deals in Eisenberg’s Arad shares. All three were released on bail by the Tel Aviv District Court.
Eisenberg is chairman of Arad and holds the controlling interest in the company; Jesselson is a shareholder in the company; and Sapir is a securities portfolio manager, and a director and member of the audit committee at Arad. The allegations against the three men are misleading statements in a prospectus, fraudulent obtaining in aggravated circumstances, fraud and breach of trust in a corporation, perverting the course of justice, and misleading an investigation. "Globes" reported the existence of the investigation over a month ago.
The affair revolves around the sale of shares in Isras Investments, a company 30% owned by Eisenberg and his associates, to Arad, at an inflated price. Eisenberg, Jesselson, and Sapir were allegedly involved in a fraudulent scheme to obtain approval of the deal by the necessary majority of Arad shareholders.