In the shadow of the high-profile investigation by the Securities and Exchange Commission at the Yount Credit company, incidents of irregularities continue to surface at the non-bank credit company as well Backing up holdings . The current report of Behif, like its predecessor, concerns actions attributed to the manager of the credit portfolio at the northern branch of Behif, Eyal Rosen.
This time it is about two loans, amounting to NIS 2.2 million, which were given to Rosen’s associates, including his father, without the appropriate approvals being given. This announcement comes about two weeks after it became known that Rosen himself took out loans from the company, in the amount of NIS 2.5 million, also without the management’s knowledge and without obtaining the necessary approvals.
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As part of the tests conducted in the company, it became clear that in September and October of last year, two loans were advanced to third parties related to Rozen. One was placed with a company controlled by his father, Nir Rosen, in the amount of NIS 1.1 million and with a monthly interest rate of 0.4%, a loan whose repayment date is September 28 of this year.
In addition, a loan in the amount of NIS 1.1 million with a monthly interest rate of 0.9% was made to a third party, in the backing of which it is noted that he “has additional connections with Rosen as well as with another customer of the company”. This loan was placed against a check whose payment is scheduled for October 14 of this year.
The branch manager was immediately suspended from any position in the company
Backing up holdings, we noted that the company sought to clarify the issue with the borrowers, who did not deny their debt. It was also noted that the loans are not included in the debt that the company assesses at risk, which was estimated at the end of last month at NIS 38 million.
As mentioned, about two weeks ago, Baihif reported that it learned from Marozen himself that in September of last year he was granted two loans totaling approximately NIS 2.5 million from two clients of the branch under his management, without the knowledge of the company’s management, without obtaining approvals and without reporting to the relevant authorities as required. According to the report, the loans were used by Rosen for his personal needs, among other things, according to him, to purchase shares of the company.
In fact, these were loans given back-to-back. Rosen explained that the financing of the funds he received was carried out through the provision of two loans by backing to those customers, against the deposit of checks, in the manner in which in practice Rosen was the one who received the loan funds. In the backup, we stated that the company did not have the checks given against the loans to the customers, and the company is working to clarify the matter. Backing Holdings immediately suspended Rosen from any position in the company, and indicated that the continuation of the contract with him would be examined.
The stock lost 85% in three months
Backing is controlled by Yonatan Cohen (owner of the Infin underwriting company), who owns 62.8% of its share capital. The company’s stock reflects a market value of NIS 32 million as a backup, after losing 85% in three months due to the irregularities discovered in it and first reported at the end of June.
At the same time, Baihiv reported that it was appointing an external auditor “to examine the company’s activities, and in particular the northern branch, in light of concerns about poor conduct in connection with the company’s procedures, as well as a slowdown in the rate of payment of checks in the northern branch and an increase in requests for payment deployments in this branch.”