The company officers who are being investigated on suspicion of using inside information at Group Psagot for Finance and Investments (TASE: GPST) are chairperson Rani Zim and CEO Yaniv Bender. Yesterday, the investment house reported that Israel Securities Authority investigators had carried out a search at its offices as part of an investigation into suspicions of use of inside information. Psagot also stated that, as far as it was aware, there were no suspicions concerning the investment house itself.
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Shares in Psagot fell by 7.62% yesterday, cutting its market cap to NIS 230 million. The share price is down by a further 1% this morning. Zim owns 61.5% of the company and Bender 10%. Zim acquired control of Psagot from Altshuler Shaham in May 2021 for NIS 405 million.
Adv. Eran Shaham-Shavit, of law firm Balter Guth Aloni Co., who is the attorney representing the company officers at Psagot, stated on their behalf: “To the best of our understanding, the investigation concerns events in the past that have nothing to do with the business of investment house Psagot. All transactions in securities by my clients were carried out lawfully and with specific legal advice. Accordingly, we are sure that, when the investigating authority concludes its examination, it will become clear that my clients have acted lawfully and irreproachably. I would add that the officers cooperated with the investigation, and were released to their homes after questioning with no restrictions placed on them in relation to their roles in the public company.”
Rani Zim and Yaniv Bender are suspects only, have not been convicted of any crime, and are entitled to the presumption of innocence.
Published by Globes, Israel business news – en.globes.co.il – on January 12, 2023.
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