Businessman Convicted of Fraud for Stealing NIS 1 Million from Fellow Inmate

Businessman Nissim Djaladti has been convicted of aggravated fraud by the Tel Aviv District Court for deceiving a fellow inmate into investing NIS 1 million, which he then used for personal expenses, including a deposit for a prior criminal case. The court found that Djaladti, while serving a prison sentence, lured the complainant, Boaz Edri, into a deal to purchase shares in a stock exchange company. Djaladti was also convicted of money laundering, document forgery, using forged documents, false corporate record-keeping, and tax offenses.

Israel Meged, owner of a financial services business, and his company Y.F.A. Conditions Ltd. were convicted alongside Djaladti for forgery, using forged documents, false record-keeping, and money laundering. The charges stemmed from Djaladti's scheme, executed during his imprisonment and immediately after his release on license, where he presented false pretenses for the funds' use.

According to the indictment, Djaladti and Edri met in prison and developed a close friendship and trust, which led to business dealings. In 2020, Djaladti proposed Edri invest NIS 1 million for a 2.5% stake in a shell company. Edri transferred NIS 250,000 as an advance, but Djaladti used it as a personal deposit in a criminal proceeding without Edri's knowledge. Edri then transferred the remaining NIS 750,000 to Meged's company, believing it was for tax purposes, but Djaladti withdrew most of it in cash and never transferred the shares.

Judge Michal Agmon-Gonen stated that the fraud conviction was based on the totality of the evidence, including the personal use of the advance payment, receiving the full sum, and demanding additional payment later. She highlighted the aggravating circumstances, noting the significant sum, the extended period of deception, the use of different transfer methods, and the exploitation of the close trust between the two men. The court also found that documents, including a power of attorney, were forged in Edri's name to withdraw the funds, with Meged convicted of the forgery and Djaladti as a joint perpetrator.

Djaladti was acquitted of one count of theft by an authorized person related to the stock deal and another count of fraud involving NIS 100,000 in a different investment, where reasonable doubt remained. He was also acquitted of certain money laundering charges.