Nochi Dankner's attempts to avoid indictment have failed. The State Prosecutor's Office today notified the lawyers representing Dankner and Itay Strum that it would file an indictment in the coming days against their clients for manipulation of IDB Holding Corp. Ltd. (TASE:IDBH) shares. IDB will also be indicted.
Allegations that IDB Holdings shares were manipulated were first made in January 2014. One day after Dankner lost control of the IDB concern, the Tel Aviv District Prosecutor's Office (Taxation and Economics) summoned him for a pre-prosecution hearing in the share manipulation case, in which he was suspected, together with Strum, of intentionally influencing the share price of IDB Holdings in order to better the chances that the company's offering would succeed.
Strum, who controls an investment company managing customer portfolios for the top 0.1%, and IDB were also notified that they would be indicted in the affair, subject to a hearing. Adi Sheleg, the third suspect in the case, signed an agreement with the prosecutors to turn state's evidence and testify against Strum and Dankner.
Dankner is suspected of securities fraud, including a misleading item in a prospectus, violation of the duty to report, and an action involving forbidden property.
Strum is suspected of securities fraud, including a misleading item in a prospectus, violation of the duty to report, an action involving forbidden property under the Money Laundering Law, and obstruction of justice.
IDB is suspected of securities fraud, including a misleading item in a prospectus, violation of the duty to report, and an action involving forbidden property under the Money Laundering Law.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2014
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