Israeli court sentences former magnate to 2 years in prison

A prominent businessman was convicted of fraudulently influencing the share price of his troubled company.

An Israeli court has sentenced one of the country’s most prominent businessmen to two years in prison for securities fraud.

The Tel Aviv District Court on Monday sentenced former IDB Holding Corp. controlling shareholder Nochi Dankner for his role in carrying out millions of dollars’ worth of fraudulent transactions in an attempt to influence the share price of the troubled company.

He was also slammed with a NIS 800,000 fine.

His partner, Etai Shtrum, who bought the shares in an attempt to influence their price, was sentenced to a year in prison.

IDB took on millions of dollars in debt following a series of bad business deals. The courts wrested control of IDB away from Dankner as a result.

Dankner, a favorite withinIsrael’s business community, was credited by some with helping rescue Israel’s economy at the height of a Palestinian violent uprising. He is also known as a generous philanthropist.

Under his leadership, IDB became Israel’s largest holding company, and Dankner became a celebrity. He has since lost most of his wealth.

Dankner is expected to appeal the verdict.

By: AP and World Israel News Staff