CPA Moshe (Muki) Abramowitz, who served as the chairman of Harel's financial arm, has announced his resignation. Ben Hamburger, who was appointed chairman of Harel Investment House three months ago, will be promoted again, as Abramowitz's replacement.

Harel's financial arm, and in particular the Harel Investment House, has been undergoing changes of late. About three months ago the investment house CEO Gil Hod resigned, and Ben Hamburger was appointed in his stead. A few weeks later the huge embezzlement by Harel Investment House VP Guy Vaisman was uncovered. Israel Securities Authority chairman Moshe Tery has also announced that he is considering recommending suspension of Harel PIA CEO and his deputy following an indictment filed against them in the Bank Leumi benefits affair.

In announcing his resignation, in the letter he sent to the investment house board of directors, Abramowitz said: "Following the embezzlement in the investment house, I have asked the chairman of the group, Yair Hamburger, to accept my resignation as chairman of the investment house and subsidiaries. The embezzlement has shaken the entire system, and I feel it appropriate to resign from my position to enable new influences to act, and transform this crisis into a business opportunity."

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Abramowitz has worked in the Harel Group for 32 years, and will continue to act as deputy CEO of the Harel Group, in development of the group's business overseas and of the credit area.

Meanwhile, the Harel group announced its acquisition of Recanati Inbar Investments, buying out the holdings of the company's main shareholders, Shimon Alkabetz and Dan Gonen, and investment in Recanati Inbar for a total of 60 percent of the company's shares.

Chairman of the Harel Group Yair Hamburger said that one of the main advantages in the transaction is that Recanati Inbar management will join the Harel group. Recanati Inbar CEO and shareholder Shimon Alkabetz will become CEO of Harel Investment House, and deputy CEO of Harel Insurance Investments and Finances.

Alkabetz told TheMarker yesterday: "This is a serious challenge, to build Harel Investment House after the unfortunate affair involving Guy Vaisman. Nevertheless, Harel's position in the insurance world is undisputed, and the group has a strategic goal of establishing an equal position in the financial world."

Alkabetz added that current auditing in the investment house is insufficient, and along with business development, emphasis will be placed on operation, auditing and administration, with the understanding that this is crucial for a company that seeks to move forward.

Recanati Inbar Investment is involved in portfolio and mutual fund management. The company has been in operation since November 2003, and began managing funds in June of 2006. Recanati Inbar manages assets worth NIS 600 million, and its equity, according to 2006 financial reports, totals about NIS 3.5 million. Upon completion of the Harel Group transaction, the firm's name will be changed to Harel Recanati Investment House, and it will act as a "boutique" investment house alongside Harel Investment House.