Israeli Authorities Revoke Licenses of 12 Insurance Agents in "Slice" Fraud Case

Israel's Capital Markets, Insurance and Savings Authority has revoked the licenses of an additional five insurance agents from the "Finbert" agency, bringing the total to 12 agents implicated in the "Slice" case. These agents are accused of transferring over 280 million shekels of client funds to foreign funds managed by the agency or affiliated individuals. The decisions were made by Authority head Amit Gal following a comprehensive investigation in 2024 that uncovered systematic violations.

Courts have upheld the initial revocations of seven agents' licenses, rejecting petitions against the authority's actions. The court emphasized the personal and professional responsibilities of insurance agents, including acting in clients' best interests, exercising due diligence, and providing full disclosure. This ruling reinforces the principle that licensed agents are not merely salespeople but bear personal accountability for managing client money.

The Capital Markets Authority views the court's stance as crucial in countering attempts by violators to delay proceedings and anticipates it will expedite other ongoing cases involving individuals connected to the fraud. The "Slice" case is considered the largest fraud uncovered within a supervised financial institution in Israel, with approximately 850 million shekels in investor funds lost. Through "Finbert" agents, hundreds of millions in pension savings were channeled into individually managed pension funds and foreign investment portfolios.