Loss of Hundreds of Millions: ‘Largest Financial Fraud In Israeli History’
A sweeping legal action seeking roughly one billion shekels was filed on Tuesday by CPA Effi Sandrov, the court-appointed trustee overseeing the collapse of the pension fund company Slice. The lawsuit targets members of the Goldberg family, headed by Assaf Goldberg, who previously served as the company’s chief executive.
The filing describes a systemic breakdown inside the company, alleging that internal safeguards simply did not function. The trustee points to a complete absence of effective oversight by the board, a breakdown of internal controls, serious lapses by the compliance and regulation officer, and deficient work by the external auditor. Sandrov said, “The entire system failed-from the management that operated like a ‘grocery store’ to the gatekeepers who abandoned their duties.”
According to the lawsuit, approximately 7,500 savers moved an estimated 850 million shekels into personal pension and study funds structured as IRAs. Those funds were then routed into overseas investment vehicles that were not subject to Israeli regulation, with a substantial portion of the money never making its way back to the savers.
Sandrov characterizes the case as unprecedented in scope and severity within Israel’s pension savings industry. “The Slice affair is the largest and most serious breach of trust against pensioners,” the lawsuit states.
Much of the blame, the filing asserts, rests squarely with Assaf Goldberg. The trustee alleges that Goldberg “failed in every possible way in his role,” running the company without the requisite professional background, expertise, or qualifications. The lawsuit further claims that Slice maintained “connections with dubious insurance agents, some of whom have criminal backgrounds,” and that the company repeatedly violated basic principles of proper corporate governance.
The lawsuit paints a picture of an organization operating without meaningful questions or accountability. “There was no one to ask how and why,” the lawsuit states. “If they had asked, they would have discovered that Slice was unprepared, unaware, and had no control over the members’ funds. This created a foolproof recipe for collapse-and the result: hundreds of millions of shekels disappeared, and thousands of savers-some elderly-were left with nothing.”
{Matzav.com}
