Ella Levy-Weinribo, 07 April 2014
The indictment is against David Edry, Shai Ben-David, Aharon Navon, and Saar Weintraub.
Four years after the Psagot Investment House Ltd. scandal erupted come the indictments: the Tel Aviv District Attorney (taxation and economy) has filed an indictment against David Edry, who was vice president of Psagot’s brokerage manager of the company’s nostro account at the time, Shai Ben-David, former manager of Psagot’s brokerage, Aharon Navon, former manager of Deutsche Bank Israel’s trading room, and Saar Weintraub, who was a broker at Deutsche Bank Israel.
The indictment accuses the defendants of aggravated fraud and illegally influencing security prices. In addition, the indictment accuses Edry of fraud and breach of trust in a corporation. “Globes” previously reported that the district attorney intended to issue the indictments.
According to the first indictment, the defendants acted together to influence government bond prices in advance of the swap auction carried out by the Ministry of Finance in 2007. According to the joint plan, in the days preceding the auction, the defendants executed many deals, in large volumes, in order to influence the price of one of the bonds in the auction. In addition to the joint plan, Edry and Ben-David acted to influence the prices of other bonds in the auction. These activities improved the conversion ratio that the defendants were entitled to in the auction, and brought in significant profits for Psagot and for Deutsche Bank Israel.