In the Tel Aviv Magistrates Court today, Former Discount Investment CEO Dov Tadmor was sentenced to 18 months jail, twelve months of which is suspended, and a fine of NIS 700,000. Tadmor was convicted of offences under the Securities Law. The conviction related to the concealment of financial reports of companies connected to Discount Investment to mislead investors.
Discount Investment’s legal adviser and its former financial controller each received 12 months suspended prison sentences, and fines of NIS 450, 000. Discount Investment itself was fined NIS 800,000.
The accused were convicted of failing to submit financial statements of three affiliated companies, Iscar, Blades Technologies, and Tefron, to the Tel Aviv Stock Exchange and to the Registrar of Companies. The statements of the first two companies were withheld at the wish of the controlling shareholder in the companies, the Wertheimer family, while the Tefron statements were withheld in order to conceal the company’s problematic financial condition.
Following the passing of the sentence, Tadmor said, “I have never misled investors, and never intended to do so. No investor was misled and no damage was caused to anyone. During the years that I was at Discount Investment, the good of the investors was always before me.”
Tadmor said he regretted the court’s decision, that he believed it was wrong, and that he intended to appeal against it.
Published by Globes [online] - www.globes.co.il - on 13 May 2002