Israeli Businessman Nochi Dankner Convicted of Securities Fraud

  • Former tycoon found guilty of manipulating company share price
  • Dankner could face five-year jail sentence, Haaretz reports

Nochi Danker, once one of Israel’s most powerful businessmen, with holdings ranging from telecoms to insurance, was convicted of stock manipulation by a Tel Aviv court.

The former controlling shareholder of IDB Holding Corp., Dankner was charged with improperly influencing IDB’s share price days before a planned securities issuance in February 2012, according to an e-mailed statement Monday from the Tel Aviv District Economic Court. The former tycoon could face as much as five years in prison, the Haaretz daily reported.

Dankner, whose family made its fortune in table salt and real estate, had to cede control of IDB, one of the country’s largest holding companies, in 2014 after struggling with billions of shekels in debt. Through his privately held Ganden Holdings Ltd., Dankner had stakes in IDB Holding, which in turn had a stake in IDB Development Corp.

IDB Development is now owned by Argentine businessman Eduardo Elsztain. The company holds shares in Discount Investment Corp., which owns stakes in Cellcom Ltd., Israel’s largest cellular operator by subscribers, and Shufersal Ltd., the country’s biggest supermarket chain.

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