A backup group has identified about 40 clients who are feared to be connected to the embezzlement case amounting to tens of millions of shekels of the company’s funds, according to a report submitted to the court today (Sunday) by the temporary trustees, attorney Raanan Klier and accountant Yitzhak Idan. it’s aboutA preliminary report about findings from the work they performed in backing holdings about two weeks after the creditors of the company, which has debts of NIS 217 million, deposed the chairman and controlling owner of the foreign banking company Yonathan KaBoth from the position of chairman, claiming that the company preferred to return debts to the banks in the amount of NIS 100 million and not to pay its bondholders first, as should be done.
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As I recall, Backing hired the services of the external auditor Ofer Alkalai in order to examine where almost NIS 40 million in company funds that were managed in the northern branch of Backing went. Since the publication of the report by CPA Alkalai in August, the extent of the embezzlement case has not yet been clarified, even after that several months have passed since it was revealed and since it was published.
“Different cases that raise many bewilderments and questions”
After the publication of the embezzlement affair, Behifing Holdings filed a lawsuit for 38 million shekels against the manager of the northern branch, Eyal Rosen, Yoram Eliav whose role was defined as credit manager at the North branch, Ran Kairi who was the CEO of the companies in the Behifing group, and Julie Shama who was the legal advisor and compliance officer of the companies In a backup group, the company then reported a provision for credit losses following the embezzlement case in the amount of NIS 80 to 100 million, indicating that the scope of the embezzlement is much larger.
Attorney Raanan Clear / Photo: Eyal Tuag
“The Alkalai report describes things that the CPA Alkalai exchanged with a number of ‘customers’ who completely ‘forgot’ that they had received credit, some of whom after the conversation ‘remembered’ the credit they had received, customers who deny the debt, and various other cases that raise many bewilderments and questions. In the meantime, the temporary trustees were also informed that a backup group had identified about 40 clients who, according to their position, are feared to be related to the embezzlement case (a subject that still requires examination and investigation – according to the report submitted to the court). Indeed, there is much that is hidden over the visible, and as the honorable court noted in the decision, the extent of the affair is being revealed every day. “Indeed, since the Elkalai report was signed, the picture only becomes more gloomy,” reads the report submitted by the temporary trustees.
“Already at this early stage, the facts that exist before the temporary trustees seem to show that the embezzlement case, as it is described in the documents before the temporary trustees, is characterized by the fact that it was carried out with assistance, cooperation and through a variety of parties who were customers and/or debtors (in view of the attractiveness of checks she received A backup group for providing loans) of a backup group,” it was explained.
The total debts of the backup group are about NIS 217 million
In the report, the temporary trustees describe the current state of the company. “Backup Group currently operates with reduced personnel after streamlining. In March 2022, on the eve of the disclosure of the embezzlement, 22 employees were employed in Backup Group. Currently, only 9 employees are employed in Backup Group, three with senior positions (CEO, deputy to the CEO who also serves as a chief risk manager as well as a compliance officer who serves as a risk manager), as well as an operation, collection, control and accounts system that includes five employees, as well as one general employee. It should be emphasized that the existing managers and employees are the ones who dealt with the disclosure of the embezzlement case, including working with the previous officials in a backup group And in front of customers who have reasonable grounds to assume that they took part in the embezzlement case to obtain information, and also acted to uphold the rights of a backup group by taking the legal action,” the report states.
As for the financial situation of the company, the total debts of the backup group are about NIS 217 million, of this amount, the backup groups have substantial debts of about NIS 140 million to the bondholders and about NIS 75 million to the various banks. The amount of cash in the hands of a backup group, found in the accounts defined in the agreement with the receivers, as those available to the temporary trustees, is only about NIS 2.4 million. This is while the total debts of customers or debtors towards the backup group are estimated at approximately NIS 300 million (these are the debts of those who took credit from the backup group or gave checks to the backup group), while the amount does not include other amounts that may reach the backup group, including for the embezzlement case, as compensation for its damages .