Key Figure in Gibui Collapse Extradited, Millions Missing

Eyal Rosen, a central figure in the financial irregularities and alleged embezzlement that led to the collapse of the non-bank credit company Gibui Holdings, has been extradited from Portugal to Israel. Rosen, who disappeared abroad over four years ago shortly after the scandal broke, is now facing charges of stealing NIS 9 million from the company. He is expected to be the first to stand trial in the case, which has been compared to the Bank Leumi scandal.

Rosen allegedly exploited his position and relationships with clients to siphon millions, disguising the theft as routine credit operations. The indictment claims he directed his father, Nir Rosen, to facilitate a NIS 1.1 million loan that was immediately transferred to Eyal Rosen's account, later recorded as offset despite flowing to Eyal Rosen and credit manager Yoram Eliyav. The stolen funds were allegedly used to purchase company shares and finance businesses owned by Rosen or third parties acting on his behalf.

An investigation by Globes reveals that over NIS 200 million of the hundreds of millions of shekels that vanished from Gibui have not been recovered, with estimates suggesting the money is lost. So far, trustees have recovered approximately NIS 90 million from a credit portfolio that initially stood at around NIS 300 million. The difficulty in recovering the remaining funds is compounded by the profile of Gibui's debtors, some of whom have been murdered, fled, or are bankrupt. Rami Mura, a major debtor owing over NIS 20 million, was reportedly killed in Nazareth two years ago in a criminal dispute.

Gibui Holdings, which provided short-term business credit through check discounting, collapsed in late 2022 after years of extending credit without adequate due diligence. The company allegedly operated with a policy of "come and take," making it an easy target for those who intended to default. Trustees discovered that the company's credit portfolio included clients with criminal records and pending insolvency proceedings, and that many checks were issued without underlying transactions.

In an effort to recover funds, Gibui's trustees filed a NIS 360 million lawsuit against numerous parties involved in the affair, including former controlling shareholders, underwriters, executives, and the auditing firm Deloitte. The case is currently in mediation. Meanwhile, underwriters Jonathan Cohen and Yossi Levi, who purchased control of Gibui shortly before its collapse, lost over NIS 50 million and have sued the former controlling shareholders, Ariel and Avital Pardo, for allegedly concealing the company's true financial state. The Pardos have since moved on, with Avital Pardo co-founding a fintech company now valued at $1.5 billion.