search
Front > News

HUB Security suspects former CEO of embezzlement

Eyal Moshe Credit: Ruby Leibowitz
Eyal Moshe Credit: Ruby Leibowitz
20 Apr, 2023 13:06
שלח תגובה במיילShiri Habib-Valdhorn

Suspicions were aroused after Uzi Moscovich succeeded founder Eyal Moshe as CEO.

Less than two months since Israeli company HUB Cyber Security (TASE: HUB) began delisting from Nasdaq, it has been announced that the company is investigating if founder and former CEO Eyal Moshe embezzled the company's money. The company has hired a private investigator who has presented the company with information from his investigation and at this stage the company is continuing its examination in in order to substantiate its findings and check whether all the expenses made in recent years were indeed for the needs of the company.

HUB Cyber Security reached Wall Street after enduring quite a few hardships. The company started trading on the Tel Aviv Stock Exchange (TASE) after a reverse merger with ALD and one year after that announced a SPAC merger at a company valuation of $1.28 billion, four times its market cap of the TASE.

The company hoped that the US market would know how to better price its cybersecurity activities and feared that trading on the TASE would weigh on its share, and so it sought court approval to delist from the TASE as soon as it started trading on Nasdaq.

HUB Cyber Security currently has a market cap of $143 million, which is lower than its market cap when it delisted from the TASE. This is due to its difficulties in completing the fund raised as part of its Nasdaq listing because investors who committed to the offering did not transfer the funds and the company is in talks with them on this.

Shortly before completing the SPAC merger, HUB Cyber Security unexpectedly announced management changes. CEO and founder Eyal Moshe became president of US operations and chairman Uzi Moscovich, former head of the IDF cyber, defense communications division, replaced him as CEO.

As far as is known, there were no suspicions of embezzlement before the IPO and before the management changes, but after Moscovich took over as CEO and examined the company's revenue and expenditure, suspicions were aroused that are now being investigated.

Published by Globes, Israel business news - en.globes.co.il - on April 20, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

Eyal Moshe Credit: Ruby Leibowitz
Eyal Moshe Credit: Ruby Leibowitz
groundcover founders credit: Yossi Yarom Israeli observability co groundcover raises $35m

groundcover has developed a “Bring Your Own Cloud” (BYOC) observability solution, redefining the architecture of a modern observability platform.

Tel Aviv Stock Exchange credit: Shutterstock MagioreStock Foreign investment in TASE hits five-year high

Foreign investors have been flocking to the Tel Aviv Stock Exchange in recent weeks, the TASE research department tells "Globes."

Elbit Systems tank turret systems credit: Elbit Systems Elbit Systems wins $100m tank turret systems deal

The Israel defense electronics company will supply its advanced UT30 MK2 unmanned turret systems to General Dynamics European Land Systems (GDELS) to be supplied to a NATO European country.

Tomer Weingarten Photo: PR Trump targets SentinelOne exec in act of revenge

The US administration has suspended the security clearance of the company's chef intelligence and public policy officer Chris Krebs and everyone associated with him.

Tel Aviv Stock Exchange share prices rising credit: Tali Bogdanovsky TASE opens sharply higher after Trump U-turn on tariffs

The pause is being interpreted as a climb down after US President Donald Trump admitted he had made the move to calm the markets.

Ashot Ashkelon credit: Ministry of Defense Up 250%, Ashot Ashkelon wins another Defense Ministry order

The Israeli defense company's share price has risen 250% in the past three years since FIMI Opportunity Funds acquired control.

Liad Agmon credit: Eyal Izhar Insight Partners Liad Agmon steps down as managing partner

Serial entrepreneur Agmon has served as a partner at Insight Partners Israel alongside Daniel Aronovitz who set up the Israel office.

Shekels credit: Shutterstock Vladerina32 Shekel slide resumes amid escalating tariff war

The Bank of Israel is not expected to intervene in the forex market despite the sharp depreciation of the shekel.

Nir Zuk credit: Inbal Marmari Palo Alto Networks mulls buying AI security co for $700m

Sources inform "Globes" that on Palo Alto's radar is Protect AI.

President Donald Trump hosts Prime Minister Benjamin Netanyahu credit: Reuters Kevin Mohatt Israeli officials confident on US tariff concessions

Senior Israeli figures believe that concessions could be tied to progress on strategic regional political issues that are important to President Trump.

Phoenix Investment House CEO Avner Hadad credit: Tommy Harpaz "The market has priced in all the bad things"

Phoenix Investment House CEO Avner Hadad says US markets could continue to fall, but that we are close to interesting territory for patient investors.

Tel Aviv credit: Shutterstock Tel Aviv slips in World's Wealthiest Cities ranking

Tel Aviv's position as one of the world's wealthiest cities took a big knock over the past year as it slipped from 42nd to 48th in investment advisors Henley & Co.'s "World's Wealthiest Cities" Top 50 ranking.

Leviathan platform credit: Albatross C'ttee seen recommending no cut in gas exports

The Dayan committee on the future of the gas sector estimates that Israel's natural gas reserves will run out in 2045.

Accountant General Yali Rothenberg credit: Rafi Kutz Israel's fiscal deficit continues to narrow

The deficit narrowed in the twelve months to the end of March 2025, for the sixth consecutive month, Ministry of Finance accountant general Yali Rothenberg reported today.

Arkia credit: Arkia Arkia cuts Tel Aviv - New York April fares

Arkia has cut fares at the last minute, a time when prices usually soar even higher, according to the pricing method used in the industry.

Bank of Israel Governor Prof. Amir Yaron credit: Dani Shem Tov Knesset Spokesperson BoI Governor: US tariffs could push up inflation in Israel

Prof. Amir Yaron tells "Globes" that there is a risk that the new tariffs will cause inflation to rise in the US, with a knock-on effect for Israel.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018