Nochi Dankner
| Nochi Dankner | |
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| Nationality | Israeli |
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| Occupation | Businessman; former chairman and controlling shareholder of IDB Holding |
| Known for | One of Black Cube's first publicly known clients (2014); convicted of share manipulation (2016) |
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Nochi Dankner is an Israeli businessman, formerly chairman and controlling shareholder of IDB Holding, once described by Globes as "the best-known figure in the Israeli economy and capital market".[1] After losing control of IDB he hired the private intelligence firm Black Cube to investigate the group's new co-controlling shareholder, Moti Ben-Moshe. That was the case that first brought the firm to the attention of the Israeli capital market.[2] In 2016 he was convicted of manipulating IDB's share price, and in 2018 the Supreme Court increased his prison sentence to three years.[3]
Timeline
| # | Date | Event | Ref |
|---|---|---|---|
| 1 | February 2012 | As chairman and controlling shareholder of IDB, pays the financier Itay Strum NIS 8 million to influence IDB Holding's share price during a share offering | [1] |
| 2 | By early 2014 | Loses control of IDB to Moti Ben-Moshe and Eduardo Elsztain | [2][4] |
| 3 | January 2014 | Files a court motion to reverse the loss of IDB, supported by a 13-page affidavit by Black Cube's Avi Yanus | [2] |
| 4 | 4 July 2016 | Convicted by the Tel Aviv District Court of share manipulation | [1] |
| 5 | 5 December 2016 | Sentenced to two years in prison and a further year suspended, and fined NIS 800,000 | [1] |
| 6 | 29 August 2018 | Supreme Court dismisses his appeal and lengthens the sentence to three years | [3] |
| 7 | 2 October 2018 | Ordered to report to prison to begin his sentence | [3] |
Black Cube
Globes reported in February 2014 that Dankner had hired Black Cube and Barlev Investigative Auditing, "reportedly paying them hundreds of thousands of dollars for several weeks of work", to investigate Ben-Moshe, who had become co-controlling shareholder of IDB. The main findings were filed with the court as part of Dankner's motion to cancel the decision to take IDB away from him. The motion included a 13-page affidavit by Avi Yanus, "one of Black Cube's two partners and VP". It raised doubts about Ben-Moshe's statement that he was the sole owner of Extra Holding GmbH, suspicions of financial fraud through a pyramid scheme, and questions about taxes and VAT fraud. Globes wrote that Black Cube "was basically revealed to the Israeli capital market when Dankner filed his motion".[2] In 2017 Globes listed the case as the firm's second high-profile assignment after Vincent Tchenguiz. It said the investigation was carried out jointly with the forensic auditor Yehuda Barlev and, citing Forbes, in a number of countries.[4]
Conviction
On 4 July 2016 the Tel Aviv District Court convicted Dankner of using Strum to influence IDB Holding's share price fraudulently, to improve the chances of an offering the company made in February 2012. On 5 December 2016 Judge Khaled Kabub sentenced him to two years in prison, a further year suspended and a fine of NIS 800,000. The judge said: "Dankner's breach of trust towards the investment community is substantial and weighty. Dankner sought to save his control of IDB, and acted unlawfully." Prosecutors had sought three to five years.[1] In August 2018 Supreme Court Justices Neal Hendel, David Mintz and George Karra upheld the conviction and lengthened the sentence to three years, stressing "the trend towards giving stiffer sentences for economic crimes".[3]
See also
Notes
- ↑ 1.0 1.1 1.2 1.3 1.4 Chen Ma'anit, Nochi Dankner given two years jail, Globes, 5 December 2016.
- ↑ 2.0 2.1 2.2 2.3 Efrat Peretz, Investigating the investigators, Globes, 3 February 2014.
- ↑ 3.0 3.1 3.2 3.3 Chen Ma'anit, Supreme Court lengthens Nochi Dankner's sentence, Globes, 29 August 2018.
- ↑ 4.0 4.1 Hadas Magen, Black Cube - a "Mossad-style" business intelligence co, Globes, 2 April 2017.