Former IDB Group chairman Nochi Dankner appeared in the Tel Aviv District Court this morning in his criminal trial on charges of share pegging. Dankner filed his statement of defense.
As he has done since the start of the investigation, Dankner denies all the charges against him. He acknowledges the ties of friendship between him and the other defendant in the case, Itay Strum, but claims that he did not instruct Strum to commit fraud in trading in IDB securities, and that he believed Strum's actions to have been lawful and legitimate. At the same time, Danker points an accusing finger at the state's witness, Strum's associate at the time of the alleged crimes, Adi Sheleg, alleging that Sheleg and his wife traded fraudulently in IDB Holding shares for personal gain, causing losses to Strum's brokerage, ISP Financial Services Ltd, in the process. Strum also filed his statement of defense today. In it Strum seeks to clear both himslef and Dankner, and he too puts the blame on Sheleg.
The indictment accuses Dankner of using Strum to manipulate the share price of IDB Holding in order to improve the chances of success of a securities offering held in February 2012, paying Strum NIS 8 million.
According to Dankner, Strum's transactions in IDB Holding shares were at the latter's own initiative, and at the time they took place, the success of the company's offering was already assured, so that there was no motive for manipulating the share price. The payment of NIS 8 million is explained in the statement of defense as a loan such as Dankner was wont to give to family members and friends.
Sheleg's lawyers said in response today that the attempt to undermine their client's credibility was predictable, and that they recommended Dankner and Strum to focus their efforts on dealing with the evidence.
Published by Globes [online], Israel business news - www.globes-online.com - on September 29, 2014
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