The State Attorney's Office filed an indictment with the Economic Department of the Tel Aviv District Court against Tzachi Azar, Shlomo Isaac, Shai Penso, the companies they own, 'Yount Credit Financial Services Ltd.' and 'Yount Private', and other individuals involved.
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The indictment charges the defendants, each according to their share, with the offenses of fraud and breach of trust in a corporation, receiving something by fraud under aggravated circumstances, and reporting offenses under the Securities Law.
At the same time, as part of a plea agreement, an indictment was filed against former Minister Moshe Kahlon for a securities offense.
According to the indictment, filed by attorneys Yossi Tzadok, Dror Levy and Dana Strom from the Securities Department of the Taxation and Economic Affairs Attorney's Office, the central case concerns an allocation transaction carried out in 2020, in which 2 million shares of the public company, worth NIS 50 million, were allocated to the private company of the controlling shareholders and additional advisors.
According to the allegations, the controlling shareholders, advisors, and the company's compliance officer made false representations to public company institutions that the source of financing for the transaction was external sources related to the controlling shareholders.
In practice, the controlling shareholders, together with the others involved, planned and executed a roundabout deal according to which the source of financing for the purchase of the shares was the public company's own funds, and thus they fraudulently obtained shares worth tens of millions of shekels.
Another affair is attributed primarily to the company's controlling shareholders and the operator of the company's Nazareth branch, and deals with serious financial irregularities at the Nazareth branch, including suspected embezzlement of approximately NIS 5 million. According to the allegations, irregularities were discovered at the end of 2020 and concealed from the company's board of directors and the public. Only in mid-2022 were the findings reported to the board of directors, which acted to appoint an external auditor and publish the information to the public.
Following the disclosure of the provisions, trading in the company's stock was suspended, the stock was removed from the indexes, the company's credit rating was downgraded, and the auditors withdrew their approval of the financial statements for the years 2020-2022.
In addition, Tzachi Azar is credited with personal withdrawals of funds from the public company totaling approximately 400,000 NIS.
At the same time, the Taxation and Economic Prosecution Office filed an indictment as part of a plea agreement against former Minister Moshe Kahlon, who served as Chairman of the Board of Directors of the public company 'Yount Credit' between June 2021 and June 2022.
According to the indictment, after being informed at the beginning of 2022 of material irregularities at the Nazareth branch, Kahlon failed to act to bring the full information to the attention of the company's board of directors and the public, as required by the Securities Law.
According to the agreement, Kahlon will plead guilty to the indictment and the parties will petition for a suspended sentence, a fine of 180,000 NIS, and a restriction on his term as an officer in a public company for 18 months.
The case was investigated by the Investigations, Intelligence and Trade Control Department of the Securities Authority.
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