Court Approves Partial Payout Plan for Victims of Major Investment Fraud

A Tel Aviv District Court judge has approved a partial compensation plan for victims of the Slices Pension fund, which collapsed in what is being called the largest investment fraud in Israel's history. Judge Sigal Yaacobi sanctioned the plan submitted by the authorized trustee, accountant Efi Sandrov, aiming to return at least a portion of the billions of shekels lost by tens of thousands of clients.

Yaacobi criticized the lack of criminal proceedings in the case and forwarded her decision for review by the Attorney General, Gali Baharav-Miara, and State Prosecutor Amit Issar. Slices, owned by the Goldberg and Tokatly families, managed over 4 billion shekels ($1.1 billion) for 92,000 clients before the Israel Securities Authority appointed Sandrov due to severe irregularities and suspected Ponzi scheme operations.

The plan distinguishes between "white funds," where client assets were invested legally, and "red funds," where tracking the money is difficult. White fund investors will have their assets assessed, with priority for withdrawals given to older clients, though the process may take months. Red fund investors will receive their nominal investment amount, minus any loans from Slices, with those who took no loans prioritized.

Sources for the compensation include funds in "transit accounts," management fees, sale of management rights, lawsuits against third parties including Slices executives and insurance companies, and potentially a state loan or Treasury guarantee. Sandrov has not provided an estimate of the repayment percentage for different investor groups.

The judge noted that Sandrov's investigation revealed a "real concern" of a coordinated effort to divert investments from traditional instruments to alternative funds with undisclosed risks and unclear use of funds. She expressed dismay at the "deafening silence" from law enforcement agencies regarding the case.