Barclays Hotels Updates Prospectus After Disclosure of CEO’s Criminal Indictment

Barclays Hotels, which is developing a hotel, retail, exhibition and conference project on the Dead Sea, has amended its bond prospectus after an investigation by Calcalist revealed that its controlling shareholder and CEO, Ronen Mordechai, known as Motti Green, was indicted in June 2023 and is now facing a criminal trial.

The company had published the prospectus last month as it seeks to raise 400 million shekels in debt through a bond offering. Calcalist reported that Barclays described Green as a key figure in the company but did not mention the indictment or the ongoing proceedings in the original filing, despite Securities Authority rules requiring disclosure in the prospectus cover of any criminal-economic indictment or conviction involving a controlling shareholder or senior officer within the previous three years.

Following the report, Barclays issued a correction on Friday morning and disclosed the case. According to the amendment, the indictment concerns allegations that Green entered Israel using a foreign passport, allegedly intending to influence the authorities’ assessment of his status as a foreign resident for tax purposes.

The company said Green intends to file a request to cancel the indictment. It also said the criminal case is unrelated to Barclays or its business operations and would not affect the company or its ability to meet its obligations.