Chairman of the Board of Directors and principal shareholder in public company Tzafrir Engineering, Yaakov Tzafrir, has been arrested by Security Authorities detectives on suspicion of securities fraud.
Securities Authority spokesperson Adv. Michal (Nevo) Barak, who serves as deputy director of the Securities’ Investigations Department, charged today (Wednesday) in the Tel Aviv Magistrates Court that the Tzafrir Engineering company published a prospectus in September 1995 to issue the company’s securities. Securities were offered to the public by way of tender to bid.
Allegedly, from the first day of trading, surpluses were created during the leader stage of trading of Tzafrir’s shares. According to the Securities Authority, beginning at that same time and for a long period of time thereafter, Yaakov Tzafrir, using his own personal securities account among other things, acquired all surplus Tzafrir shares, both at "Best" and at "Rate".
Tzafrir carried out the acquisitions without a change in rate. It is suspected that he did so with the intention of preventing Tzafrir Engineering’s share rate from falling on the stock exchange.
The suspect has agreed to deposit NIS 750,000 in bond and remain under total house arrest until January 16.