Portugal Extradites Key Suspect in Gibui Holdings Collapse to Israel
Translated & summarized from Bizportal by baba
Portugal extradited Eyal Rosen, a key suspect in the collapse of Gibui Holdings, to Israel to face charges including fraud and money laundering. The non-bank credit company collapsed in late 2022, with estimated damages of NIS 360 million, following revelations of financial irregularities. Rosen allegedly fled Israel in 2022 before an investigation began. Multiple lawsuits have been filed by trustees, bondholders, and former owners seeking hundreds of millions of shekels.
The story in 6 lines · by baba
- Portugal extradited Eyal Rosen to Israel, a main suspect in the collapse of Gibui Holdings.
- Gibui Holdings collapsed in late 2022, with estimated damages reaching NIS 360 million.
- Rosen is suspected of fraud, theft, and money laundering related to the company's downfall.
- The company's collapse followed suspicions of embezzlement and financial irregularities at its Afula branch.
- Multiple lawsuits totaling hundreds of millions of shekels have been filed by various parties.
- Rosen allegedly fled Israel in 2022 before a public investigation commenced.
Portugal has extradited Eyal Rosen, a primary suspect in the collapse of the non-bank credit company Gibui Holdings, to Israel. Rosen is suspected of theft by an authorized person, obtaining property by fraud under aggravated circumstances, false corporate record-keeping, money laundering, and reporting offenses under the Securities Law. He managed the company's Afula branch, where the collapse originated.
Gibui Holdings, a public company formerly controlled by Ariel and Avital Pardo and later by Yonatan Cohen and Yossi Levi, collapsed in late 2022. The downfall followed suspicions of embezzlement and financial irregularities at its Afula branch. By October 2022, the company entered insolvency proceedings due to debts of NIS 140 million to bondholders and NIS 110 million to banks. The company's trustees estimate the total damage from the collapse at NIS 360 million.
Before its collapse, Gibui Holdings, which handled billions of shekels in non-bank credit annually with a portfolio exceeding NIS 400 million, published financial reports that depicted high-quality, risk-free credit. These reports showed equity of nearly NIS 100 million and a growing credit portfolio. However, the Israel Securities Authority claims these reports were falsified.
Rosen allegedly absconded from Israel in 2022 before a public investigation began. According to investigation findings, he misappropriated company funds through sophisticated fraudulent schemes and subsequently laundered the stolen money. The Securities Authority asserts that Rosen concealed his actions and caused misleading information to be included in the public company's reports to investors.
Israel's State Attorney's Office International Department, along with the Interpol unit of the Israel Police's Special Tasks Division, worked to locate Rosen. After he was found and arrested in Portugal, the International Department pursued his extradition, which Portuguese authorities approved earlier this month.
In August 2023, the company's trustees and bondholder representatives filed a NIS 360 million lawsuit against the Pardo brothers, Cohen, former officeholders, and Deloitte, alleging a failure in oversight that enabled the collapse. Gibui also filed lawsuits against former executives, including Rosen and former CEO Ran Kairi. Cohen and Levi, who purchased the company for NIS 41 million, are suing the Pardo brothers for NIS 75 million, claiming they were misled about the company's true financial state.
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