Lobby 99 Opposes Proposed Settlement in Pinbart-Slice Pension Fund Scandal
Lobby 99 has filed an objection with the Tel Aviv District Court against a proposed settlement in the Slice pension fund case involving Pinbart insurance agency colleagues. The settlement, which was already opposed by the court-appointed trustee, CPA Effi Sandrov, offers pension savers a choice between recovering about 51% of their investments within 18 months or continuing investment management in Georgia for 5-6 years. Both options require waiving future claims against the settlement parties.
The Slice scandal emerged at the end of 2023 after serious financial mismanagement was uncovered, including the illegal transfer of approximately 850 million shekels from savers’ funds to private "red funds" abroad. Pinbart was among those who raised these funds for foreign investment. Lobby 99’s objection, submitted to Judge Sigal Yakobi, argues the settlement lacks clarity on the parties involved and unjustifiably requests business confidentiality. The identities of the funds are unknown and they have not signed the agreement. Pinbart, identified as the main wrongdoer, is not required to pay anything under the settlement, which fails to hold it or other involved parties accountable.
Lobby 99 further contends that savers opposing the settlement cannot vote against it, as only two unfavorable options are presented without a third alternative. The second option, continuing investments via the funds, is described as highly uncertain and granting the funds unlimited control, forcing savers to reluctantly accept the first option, which offers a low and unacceptable return.
The trustee also informed the court that the settlement raises significant issues, including misleading representations about agreements with the "unknown" funds, which actually require their consent. Lawyers Eitan Erez and Mor Ben Shoshan, representing hundreds of savers including many Pinbart clients, defended the settlement as the result of extensive negotiations and due diligence in Georgia. They emphasized the agreement is voluntary and will be put to a vote by savers, who will receive full information to choose between a quicker partial recovery or longer-term investment with potential higher returns.
Separately, the trustee requested fines totaling 300,000 shekels against three signatories controlling the funds for contempt of court, citing unauthorized withdrawals and adding signatories against court orders. Their lawyer called the request baseless, criticizing the trustee for failing to provide effective solutions for recovering savers’ money. The court is expected to hold urgent hearings on these matters due to ongoing harm to savers’ assets.
