Israel: Yechiel Tapiro and Amir Birman were convicted of stealing NIS 125 million
Tel Aviv District Court Judge Khaled Kabov convicted Yechiel Tapiro and Adv. Amir Birman of theft by a licensee in the amount of NIS 45 million, receiving anything fraudulently in aggravated circumstances of investors’ money in the amount of NIS 80 million, in administrative offenses In the corporation, and in the offenses of recruiting investors without a prospectus in the “Keren Or” case.
The court ruled that between 2014 and 2012, Tapiro and Birman, through TB Advanced in Finance Ltd. (in liquidation), which raised investors under the name “Keren Or”, raised about NIS 80 million from about 600 investors. The raising was done without the lawful publication of a prospectus, while ensuring a high and known return in advance and while presenting false representations regarding the characteristics of the investment.
Tapiro and Birman pledged that the funds would be invested in TMA 38 projects and non-bank credit, but in practice a significant portion of the funds was used to repay investors, finance operating expenses, for the personal needs of Tapiro and Birman and for other uses that did not match the presentation given to investors.
Towards 2014, Tapiro and Birman dissolved the partnership between them. Tapiro, who remains the company’s sole owner and manager, continued to commit the offenses until April 2014, a date when the Securities and Exchange Commission demanded that it stop raising funds.
The court ruled that Tapiro “proudly won over the company’s fundraising system and was involved in its activities ‘until the last shekel'”.
He also noted that Tapiro’s actions were aggravated by the fact that he continued with extensive publications and increased the pool of potential customers – “despite the fact that he failed to meet his obligations to investors in the first period without continuing to raise funds from new investors, for no reason satiated and stopped thinking about his investors.”
As you may recall, T.B. Advanced in Finance Ltd. (in liquidation) was convicted in a plea bargain on April 24, 18 for theft, fraud and offenses of offering securities without a prospectus.
The court imposed a fine of NIS 70,000 on the company while ruling that the will of The legislature to aggravate the punishment of corporations as well as the aggravating trend in the case law, along with the consideration that this is a company in liquidation and that the fine to be paid will be deducted from the pockets of the investors, the victims of the offense.
The case was handled by attorneys Yael Anatot, Shiri Gafni, Vered Moshkovsky and Noam Rotem from the Securities Department of the Tax and Economics Prosecutor’s Office. The case was investigated by the Securities Authority’s Investigations, Intelligence and Trade Control Department.
July 27, 2020, Published on News1