Jerusalem, Israel – Ex-Heftsiba CEO Gets 7-Year Prison

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    Jerusalem, Israel – The court today sentenced Boaz Yona, the former CEO of the Heftsiba construction company, to seven years in prison and ordered him to pay NIS 8 million (about $2.03 million) in restitution to clients who lost their money when the company filed for bankruptcy.

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    Yona was found guilty last month of a slew of fraud charges, pertaining to the company’s collapse in the summer of 2007, which left thousands of families homeless.

    The court partially rejected the plea bargain regarding Yona, and ordered him to pay NIS 8 million in compensation to purchasers of apartments instead of the NIS 4 million agreed upon by the State and Yona’s lawyers.

    The judge, Moshe Ravid, accepted the seven year jail sentence recommended to him by both parties but said that the compensation agreed upon by the sides did not reflect the seriousness of Yona’s actions and the destruction that he caused his clients. He said that thousands of families invested their money, and that his heart was pained to see the suffering that they endured every day.

    A handful of purchasers, who have had to add hundreds of thousands of shekels to the original purchase price because of Heftsiba’s collapse, were angered by the court’s sentence.
    One woman, Mimi Nehemia, who bought an apartment in Ma’ale Adumim, said she had to add NIS 200,000 to the price, and that the apartment is still not ready. In addition to paying rent, she is already paying two mortgages and will now have to pay the extra sum. She said that the compensation ordered by the court will not help.

    Yona’s lawyer, Yair Golan, said that Yona had lost all his money in the collapse of his company, and had to borrow the original NIS 4 million from family and friends and would not have to find a way to pay the additional NIS 4 million.

    Asked when he would pay the money, Golan answered, “That’s a good question,” adding that Yona would make an effort to do so.

    Last month, Yona apologized to his customers who suffered as a result of the bankruptcy.

    The charges Yona was convicted for included false entry into the documents of a corporate body in aggravated circumstances, fraud in aggravated circumstances, forgery, money laundering, violations of the Stock Market Shares Law and other crimes.


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    3 Comments
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    Big Masmid
    Big Masmid
    15 years ago

    he’s lucky he is NOT Charaidy if he would be he would get life!!!