*Message from the State Attorney’s Office:*
*The Tel Aviv District Court (Economic Department) has convicted Moshe Kahlon, pursuant to his own admission, of a reporting offense under the Securities Law while serving as chairman of the public company Unet Credit, as part of a plea bargain between the parties.*
According to the indictment, filed by Attorneys Yossi Tzadok, Dror Levi, and Dana Shtrom from the Securities Division of the Tax and Economic Department of the State Attorney’s Office, after being informed in early 2022 of significant irregularities at the Nazareth branch, Kahlon failed to bring the full information to the attention of the company’s board of directors and to the public, as required by the Securities Law. Only about five months after the findings were presented to Kahlon were they brought before the board of directors, and the company reported the suspicions to the public. Shortly thereafter, Kahlon resigned from his position.
In light of the above, Judge Dana Amir of the Economic Department of the Tel Aviv District Court convicted Kahlon, in accordance with his admission, of a reporting offense under the Securities Law.
Under the plea bargain, the parties requested that he be sentenced to a suspended prison term, a fine of 180,000 shekels, and a ban on serving as an officer of a public company for 18 months from the date of sentencing.
During the sentencing arguments, the prosecution emphasized that the message arising from the conviction is clear and unequivocal: senior officers of public companies not only owe a fiduciary duty to the company and its interests as they perceive them but also bear responsibility toward the investing public and shareholders, who rely on the information disclosed by the company when making informed investment decisions.
Furthermore, alongside the sanctions and accompanying disqualification, the conviction conveys a clear message both to corporate officers and to the investing public that the law protects the interests of investors, and that a breach of such duties entails responsibility and punishment.
The investigation was conducted by the Investigations, Intelligence, and Trading Supervision Department of the Israel Securities Authority.
The sentencing is scheduled for today (May 31, 2026) at 11:30 a.m.
Sincerely,
Hila Yamini, Adv.
Spokesperson, Southern District
Public Affairs, Information, and Communications Division | Ministry of Justice