Sleis Scandal: Police Investigation Stalled, Thousands Await Lost Savings
Translated & summarized from Globes by baba
The Sleis financial scandal, involving the loss of approximately NIS 1 billion for 7,500 savers, remains largely unresolved with a stalled police investigation. Despite evidence of illegal activities and a court-appointed trustee tracing funds, criminal probes have yielded little progress, and initial complaints have been closed. A recent court-approved settlement plan will distribute NIS 170 million, prioritizing a small group of savers, while the majority face further delays. The Supreme Court has also intervened, ordering the Finance Minister to provide updates on interim solutions for the victims.
The story in 6 lines · by baba
- The Sleis scandal has cost 7,500 savers about NIS 1 billion, with investigations stalled.
- A court-approved settlement plan will distribute NIS 170 million, prioritizing some savers.
- Judge Sigal Yaacobi criticized law enforcement's insufficient attention to the case.
- The Supreme Court has ordered the Finance Minister to provide interim solutions for victims.
- Approximately NIS 350 million in saver funds remains unaccounted for.
- 12 insurance agent licenses were revoked following a Capital Markets Authority audit.
The Sleis financial scandal, revealed in 2023, has left approximately 7,500 savers with losses totaling around one billion shekels. Three years later, the investigation is stalled, with criminal probes showing little progress and police complaints from savers being closed. An authorized trustee, accountant Efi Sandrov, was appointed to trace the missing funds, which were allegedly moved from personal retirement accounts (IRAs) to Sleis Pension and then to foreign funds deemed illegal for investment by the Capital Markets Authority. Despite evidence of illegal activity by various parties, the Lahav 433 investigation has not advanced, and initial police complaints have been dismissed. District Court Judge Sigal Yaacobi noted that law enforcement has not given the case sufficient attention, expressing concern that the funds were not used for the benefit of the account holders. She has escalated the matter to the State Prosecutor and the Attorney General for review.
Evidence gathered by the trustee suggests a coordinated effort to divert investments from traditional, stable instruments to alternative funds prohibited by law. While the identities of those involved are known to law enforcement, the criminal investigation's lack of progress is a major concern. The Capital Markets Authority, led by Director Amit Gal, conducted an audit revealing severe regulatory violations, leading to the revocation of 12 insurance agent licenses from Finbert, a company that raised funds from savers. The trustee has filed civil lawsuits against insurance agents and the foreign funds holding the missing money.
A preliminary request has been made to compel Sleis's controlling shareholder, Shimon Goldberg, to pay a NIS 71 million administrative fine imposed by the Capital Markets Authority due to his personal commitment to the company's equity. Lobby 99, an advocacy group, is supporting the victims and has filed a petition against the state. Recently, Judge Yaacobi approved the trustee's settlement plan, paving the way for the distribution of NIS 170 million collected so far. This plan outlines a calculation mechanism and funding sources but does not specify individual amounts. A small group of savers who transferred funds after September 6, 2023, when transfers to foreign funds ceased, are expected to receive their full amounts soon, including one saver over 80 who received approximately NIS 400,000. The majority of savers will have to wait longer, with priority given to those nearing or at retirement age.
Of the approximately NIS 1.06 billion transferred to Sleis, NIS 845 million went to foreign funds. While NIS 120 million has been returned to savers, NIS 100 million is expected from asset seizures and settlements, and negotiations are underway for another NIS 25 million. An additional NIS 150 million has been located but not yet recovered, leaving NIS 350 million unaccounted for. A petition filed by Lobby 99 with the Supreme Court (Bagatz) urges the state to provide financial guarantees for the victims. The court has ordered Finance Minister Bezalel Smotrich to update on interim solutions for those who lost their money. "The victims are elderly people whose savings were meant to support them in their most needed years," stated Dr. Einat Solnik, legal counsel for Lobby 99, criticizing the delay in justice and the continued normalcy for those involved while thousands face financial hardship.