Aviation security company ICTS International NV (Nasdaq: ICTS) announced on Friday that on May 25, 2003, the company’s chairman and a director were detained and released on bail by Israeli police in connection with a criminal investigation led by the Israel Securities Authority.
ICTS International chairman Ezra Harel was detained and subsequently released “in connection with a criminal investigation under Israeli law involving an unrelated company in which Mr. Harel was a former director and controlling shareholder”, ICTS said.
Menachem Atzmon, a director of ICTS International, was also detained and subsequently released on bail in the same matter, the company stated, adding that Atzmon may be deemed a former controlling shareholder of the unrelated company.
ICTS said the substance of the Israeli Securities Authority's questioning of Harel and Atzmon was not known, since a gag order was in effect in connection with the investigation.
ICTS president Lior Zouker stated that "ICTS has no indication that the investigation involves ICTS."
ICTS shares fell 3.6% on Nasdaq Friday and closed at $4.77.
Published by Globes [online] - www.globes.co.il - on 1 June, 2003