Key Figure in Gibuy Collapse Extradited to Israel, Over $50 Million Still Missing
Translated & summarized from Globes by baba
Eyal Rosen, a key figure in the 2022 collapse of the non-bank credit company Gibuy, has been extradited to Israel from Portugal to face charges including theft and fraud. The company's downfall resulted in the loss of hundreds of millions of shekels, with over 200 million shekels still unaccounted for. Recovering the remaining funds is challenging due to the nature of the debtors, and lawsuits are ongoing against former stakeholders.
The story in 6 lines · by baba
- Eyal Rosen extradited from Portugal to Israel for alleged role in Gibuy financial collapse.
- Over 200 million shekels remain unrecovered from the collapse of Gibuy.
- Rosen faces charges including theft of 9 million shekels, fraud, and money laundering.
- Debtors in the Gibuy case include murdered individuals and those who have fled or are bankrupt.
- Former controlling shareholders and underwriters are involved in ongoing lawsuits over the collapse.
- Gibuy collapsed due to systemic failures in credit risk management and oversight.
Eyal Rosen, a central figure in the collapse of the non-bank credit company Gibuy, has been extradited to Israel from Portugal after more than four years abroad. Rosen is accused of being involved in financial irregularities and alleged embezzlement that led to Gibuy's downfall. He is expected to be the first to stand trial in the case, facing charges including the theft of 9 million shekels from the company, fraud, money laundering, and securities offenses.
According to the indictment, Rosen allegedly exploited his position and personal relationships with clients to steal millions, disguising the actions as routine credit operations. In one instance, he allegedly instructed his father, Nir Rosen, to take out a 1.1 million shekel loan, which was then transferred to Eyal Rosen's account and later recorded as offset. The indictment claims Rosen used stolen funds to purchase company shares and finance his own businesses.
Gibuy collapsed in 2022 after years of extending credit without proper due diligence, leading to hundreds of millions of shekels in unrecovered funds. An investigation by Globes reveals that over 200 million shekels remain unreturned, with expectations that this money is lost. The company's debtors include individuals who have been murdered, fled the country, or are bankrupt, making recovery efforts extremely difficult.
Trustees appointed to Gibuy have recovered approximately 90 million shekels from a credit portfolio of about 300 million shekels. The company's former controlling shareholders, Ariel and Avital Pardo, and the underwriters Yonatan Cohen and Yossi Levi, who purchased control from the Pardos, are among those facing lawsuits from creditors. Cohen and Levi's company, Infin Capital, lost over 50 million shekels in the collapse and has sued the Pardo brothers for allegedly concealing the company's true financial state.
The collapse of Gibuy, which specialized in check discounting and business credit, exposed systemic failures in oversight and risk management within the non-bank credit sector. Despite legal proceedings and ongoing mediation, the recovery of the majority of the missing funds remains uncertain, and concerns persist about the lack of lessons learned in the industry.