How to avoid fraud and fraud charges in Israel: How to prevent your company from being sued for fraud
The Jerusalem Press Agency – The first-year employee of a new Israeli company accused of fraud by a fraud investigator in Israel was sentenced to a year in prison Tuesday for accepting an offer to “investigate” a competitor’s software.
The company, the company’s founder and the man who was hired to investigate alleged fraud were also fined for “intentionally or recklessly” using their position to benefit themselves.
The company, known as TKL, is based in Israel and has raised nearly $6 million in a series of initial coin offerings to expand its business.
The court on Tuesday sentenced Yohanan Lipski to a five-year prison sentence for accepting a bribe to help the firm’s CEO, who is now in prison, with an investigation of rival software company, which he used to obtain the investigation’s contract.
Lipski was arrested by the Shin Bet security service last year after allegedly accepting a deal to conduct an investigation against a rival software startup.
The Shin Bet later charged Lipsky with fraudulently obtaining a license to distribute the company.
Lipki, the son of former Israeli prime minister Ehud Barak, was accused of using his position to receive bribes, including an “extraordinary” sum of $1.5 million.
He was also accused of helping to hide a portion of the bribe.
Lippki was a director of the company and a member of its board.
He has denied wrongdoing.TKL’s founder, Shaul Lev, was also sentenced Tuesday to five years in prison for allegedly “intentional or recklessness” in failing to report his company’s alleged involvement in a fraud investigation into rival software firm.
He had also been ordered to pay an additional $1 million in fines for “misconduct” committed by his company.
TkL has raised more than $2.2 million in its first three months of operations.
T KL founder Shaul Yohananyi has also been charged with fraud and is in custody.