Alleged irregularities put publicity-shy dynasties in spotlight

Published date12 May 2024
AuthorRoi Weinberger
Publication titleGlobes (Rishon LeZion, Israel)
In the past few months, however, the two families, which had always kept out of the public eye, have been on the receiving end of unfavorable publicity, after the Capital Markets, Insurance and Savings Authority and the Israel Securities Authority opened an investigation into irregularities in the tens of millions of shekels in another company that they hold jointly, namely provident fund management company Slice

Slice is 51% owned by the Goldberg family. Shimon Goldberg's son Assaf Goldberg was CEO when the affair broke, while he and another son, Shai, were directors of the company.

The suspicions of the regulators of irregularities at Slice are so severe that at the end of last year the Capital Markets, Insurance and Savings Authority decided to take the management of the company out of the Goldberg family's hands (even the decision by the company's board to replace Assaf Goldberg as CEO was of no avail) and to appoint a special manager to put its affairs in order. The Authority chose Ephy Senderov, CEO of Amitim Pension Funds, for the task.

The Tocatly family's holding in FMR is currently identified with Danny Tocatly, son of Avinoam, known as an investor in venture capital and real estate, and a member of a group of businesspeople close to Leader of the Opposition Yair Lapid. Danny Tocatly began his professional career in investment houses in the US, where he accumulated his initial wealth. Later, on returning to Israel, he entered into several investments, among them the founding of Magma Venture Partners (formerly known as Magnum) with Zvi Limon, Ron Zuckerman, and Shaul Shani. The fund made a very successful exit with semiconductor company DSPG. Another investment that did well for Tocatly was in real estate company Brack Capital, headed by his fiend Shimon Weintraub.

In the mid-2010s, FMR decided to apply the know-how it had acquired in forty years of business to running provident funds. The company says that the accounts of some 750,000 savers are managed via its systems, the main customer being More Provident Funds.

Looking for growth

According to market sources, the move into provident funds came after changes in the market that affected FMR. The services it sold to financial institutions still made plenty of money for the Goldberg and Tocatly families, but a sort of pincer movement pushed them into looking for additional sources of income.

"They have gradually found themselves in a more competitive situation than in the past, for two reasons,"...

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