Eisenberg was convicted of securities violations and fraud in the Arad-Isras affair. Harry Sapir received a suspended sentence.
Former Arad Investment chairman Shlomo Eisenberg has been sentenced to 18 months in prison and a NIS 1 million fine.
Arad director Harry Sapir was given a six-month suspended sentence and a NIS 200,000 fine.
Eisenberg said in response, “I am being forced to bear the results of a controversial interpretation of corporate law, which was not previously enforced. I therefore intend to appeal to the Supreme Court to consider this novel ruling.”
Eisenberg was convicted of using illegal means to obtain a majority at a 1997 Arad shareholders meeting for approving a party at interest transaction between Arad and a subsidiary of Isras Investment (TASE: ISRS), which Eisenberg controls. Sapir was convicted of aggravated fraud and including misleading information in a prospectus.
Published by Globes [online] - www.globes.co.il - on February 10, 2004