Channel 10 news reported last night that the State Attorney intends to indict Nochi Dankner for securities fraud. The indictment stems from an offering by IDB Holding Corp. Ltd. (TASE:IDBH) in February 2012, before which there took place a very high volume of trading in the company's shares through two of Dankner's partners. The allegation is that the trading was instigated by Dankner and financed by him, with the aim of raising the market price of IDB's shares just ahead of the offering, and thereby improve its chances of success. IDB in fact raised NIS 321 million in the offering.
Channel 2 reports that the police have recruited a state's witness who will testify against Dankner in the share pegging investigation into IDB, which until recently Dankner controlled. In September, the Israel Securities Authority recommended indicting Dankner, together with other people involved in the affair.
Adv. Eli Zohar, who represents Nochi Dankner, said in response to the Channel 10 report, "The baseless report leaked to the media is a balloon the entire object of which is to try to influence the battle for control of IDB. The State Attorney has made no decision, made no recommendation, and issued no statement."
Published by Globes [online], Israel business news - www.globes-online.com - on December 31, 2013
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