Committing offenses in companies and securities is a criminal act, which may lead to opening an investigation at the Securities Authority and filing an indictment against the offender. A person who is convicted for such offenses will bear significant monetary fines and may even be sentenced for a very long time of imprisonment in practice.
The main offenses
Securities laws are comprised of several laws, including the Securities Law and its Regulations, the Prohibition on Money Laundering Law, the Joint Investment in Trust Law and others. These laws aim to enable orderly and fair trade in the capital market, while maintaining the transparency and credibility toward the public in Israel. This, since some of the securities traded on the stock exchange involve the pension funds and savings of citizens.
Among the criminal offenses concerning the Securities Law may be listed the offenses of misleading or failure to report, fraud, insider trading or trading in such, offenses concerning the Consulting Law and offenses committed by an employee of the stock exchange. Furthermore, offenses concerning the Penal Law and the Prohibition on Money Laundering Law, both for example theft by authorized person or obtaining by fraud.