The Tel Aviv District Court on Sunday convicted Shay Lipman, a former senior analyst at the investment bank Value Base, of insider trading, securities fraud, and fraud and breach of trust in a corporation. He admitted using his position to make money trading shares of public real estate companies.
Under a plea agreement, prosecution and defense jointly asked for an 18-month prison term and financial sanctions totaling NIS 275,000. Judge Dana Amir set a sentencing hearing for September 6.
What the indictment says
Lipman worked at Value Base as a real estate analyst from 2016 to 2021. He covered public real estate companies, published reports on them, and advised on or accompanied some corporate transactions. According to the amended indictment, that work gave him sensitive and sometimes confidential information about planned business moves before the market knew of them.
In three cases he traded while holding inside information. The indictment ties those trades to Rani Zim Shopping Centers’ acquisition of control in Midas, the battle for control of Gav-Yam, and the planned sale of a controlling stake in the Sarfati construction company. Prosecutors said that each time he bought shares before the news came out, then sold after the price rose or stood to gain from it.
Eleven more cases
There were 11 other cases. In those, Lipman bought shares shortly before publishing favorable analyses of the same companies. A recommendation from a recognized financial institution can move investor demand and a share price, and the indictment says he meant to sell if his positive view pushed the price up.
His reports did not say that he held the shares or planned to sell them if they rose.
He made the trades through his parents’ bank account. That hid them from Value Base and broke company rules on employees’ personal securities trading.
