Anat Guetta, Chairman of the Securities Authority (Photo by Inbal Marmari)
The Administrative Enforcement Committee, headed by Justice Zeev Hamer, imposed significant fines on the controlling shareholder Badri-El, the company and its CFO thought, after the accountant reached an agreement with the authority earlier.
The committee determined that the controlling shareholder and CEO of the company, Gabi Edri, and the accountants in 2017-2018, are responsible for negligent reporting violations in connection with the prohibited withdrawal of advances by the controlling shareholder from the second quarter of 2017 to the first quarter of 2018.
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At the end of the day, the committee imposed a financial sanction of NIS 300,000 on the controlling shareholder, Gabi Edri, in addition to a conditional sanction of the same amount. .
A fine of NIS 75,000 was imposed on Issachar Haddad, the company thought during the withdrawal period. In addition, Haddad was prevented from holding office as a senior official in a supervised body for a period of six months. In addition, a fine of NIS 50,000 was imposed on Haim Roth, the company thought at the time of the discovery of the withdrawals, as well as the denial of office as a senior official in a supervised body for a period of five months.
The Company’s auditor in 2017, who was included in the administrative proceeding, contacted the Authority in an early enforcement enforcement arrangement. As part of the procedure, the auditor was fined NIS 70,000 for two violations of the inclusion of a misleading detail in the review report, which was attached to the financial statements, which concerned non-disclosure regarding the withdrawals of the controlling shareholder.
The administrative inquiry into this case was carried out by the Authority’s Intelligence, Investigations and Trade Control Department. The case was handled by Adv. Tal Amir, from the Securities Authority’s Administrative Enforcement Department.
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