Fallen Israeli Tycoon Dankner Set to Be Indicted for Securities Fraud

Nochi Dankner lost control of his business empire late last year and now is forbidden from leaving the country.

Yasmin Gueta
Jasmin Gueta
Nochi Dankner
Nochi DanknerCredit: Ilan Assayag
Yasmin Gueta
Jasmin Gueta

The state prosecution rejected all of Nochi Dankner’s arguments and intends to indict the former chairman of IDB, Israel’s largest conglomerate, for stock fraud and a raft of economic crimes.

The prosecution’s tax and economics department called Dankner’s attorneys Tuesday to inform them that their client’s arguments during an April hearing had been totally rejected.

Dankner, who lost control of his business empire late last year, is suspected of stock fraud, filing misleading information in a prospectus, failing to meet reporting regulations and using funds illegally.

Similar notice was given to the lawyers of Itai Strum, a partner in ISP Financial Trading and IDB Holding who passed on his right to a pre-indictment hearing.

Dankner was interrogated by the Israel Securities Authority starting in November 2012 on suspicion of securities fraud in a 312-million-shekel ($91 million) stock sale that IDB had carried out that February. He was released after posting a 5-million-shekel bond but was forbidden from leaving the country.

Dankner, securities trader Adi Yehuda and Strum were accused of trading IDB shares before the stock offer in an attempt to improperly increase the company’s share price. By lifting the price, IDB would raise more money in the public offering. The pre-sale trades were called a “friend placement” because Dankner’s associates were the main buyers.

In July 2013, the ISA recommended that Dankner be indicted. The case was passed on to state prosecutors in Tel Aviv. In January this year, the prosecution said Dankner would be indicted pending the outcome of a hearing.



Automatic approval of subscriber comments.

$1 for the first month

Already signed up? LOG IN

Protesters demonstrating in front of the consulate general of Israel in New York last year.

Huge Gap Between Young, Old Americans' View on Israel-Palestine

Rep. Henry Cuellar attends a campaign event on Wednesday, in San Antonio, Texas.

AIPAC-backed Dem Declares Victory Against Progressive Challenger in Texas Runoff

Iranian President Ebrahim Raisi and Atomic Energy Organization of Iran chief Mohammad Eslami at an event for Nuclear Technology Day in Tehran, last month.

Prospects for Reviving Iran Nuclear Deal 'Tenuous' at Best, U.S. Envoy Says

A family grieves outside the SSGT Willie de Leon Civic Center following the mass shooting at Robb Elementary School in Uvalde, Texas on Wednesday.

Israeli PM Offers Condolences After Texas Gunman Kills 21 at Elementary School

U.S. President Joe Biden, this week.

Biden Decides to Keep Iran's Revolutionary Guards on Terror List, Says Report

ADL CEO Jonathan Greenblatt.

Progressive Jews Urge ADL Chief to Apologize for Calling Out Democratic Activist