The Securities Law establishes three main categories of offenses, with the penalty for the most serious among them reaching up to 5 years of imprisonment and heavy fines: Insider trading: carrying out a transaction in a company's security by an insider, or by someone who received information from him, while in possession of material information that has not yet.
The main offenses under the Securities Law
The Securities Law establishes three main categories of offenses, with the penalty for the most serious among them reaching up to 5 years of imprisonment and heavy fines: Insider trading: carrying out a transaction in a company's security by an insider, or by someone who received information from him, while in possession of material information that has not been made public; securities fraud: influencing security prices by fraudulent means, including "stock ramping" and trading manipulations; and misleading details: including a misleading detail in a prospectus, in reports, or in the company's filings. Alongside the criminal track, there is also an administrative enforcement track, which is faster, with monetary sanctions and bars on serving in office.
Who is exposed?
Not only "tycoons": officers, directors, finance employees, accountants, lawyers, consultants, and also family members and friends who received a "tip." A hallway conversation about a deal taking shape that led to the purchase of shares before the notice to the stock exchange is enough to open an investigation. The Securities Authority monitors unusual trading patterns by computerized means, and arrives at the investigation already holding the trading data, correspondence, and location data.
Lines of defense
Was the information really "material" and "inside"? Was the transaction carried out on the basis of the information or for documented independent considerations? Did the person being questioned know of the information at the time of the transaction at all? These are questions whose resolution is evidentiary and subtle, and this is precisely where cases are decided. A version given to the Authority without preparation permanently closes off defense options.
Legal representation
Israel Arama, formerly of the Tel Aviv District Attorney's Office, represents suspects and defendants in securities offenses, in both criminal and administrative proceedings. Contact for an initial consultation without obligation immediately upon receiving the summons.
The main offenses under the Securities Law — what is important to know?
The Securities Law establishes three main categories of offenses, with the penalty for the most serious among them reaching up to 5 years of imprisonment and heavy fines: Insider trading: carrying out a transaction in a company's security by an insider, or by someone who received information from him, while in possession of material information that has not been made public; securities fraud: influencing security prices by fraudulent means, including "stock ramping" and trading manipulations; and misleading details: including a misleading detail in a prospectus, in reports, or in the company's filings. Alongside the criminal track, there is also an administrative enforcement track, which is faster, with monetary sanctions and bars on serving in office.
Who is exposed?
Not only "tycoons": officers, directors, finance employees, accountants, lawyers, consultants, and also family members and friends who received a "tip." A hallway conversation about a deal taking shape that led to the purchase of shares before the notice to the stock exchange is enough to open an investigation. The Securities Authority monitors unusual trading patterns by computerized means, and arrives at the investigation already holding the trading data, correspondence, and location data.
Lines of defense — what is important to know?
Was the information really "material" and "inside"? Was the transaction carried out on the basis of the information or for documented independent considerations? Did the person being questioned know of the information at the time of the transaction at all? These are questions whose resolution is evidentiary and subtle, and this is precisely where cases are decided. A version given to the Authority without preparation permanently closes off defense options.
This information is for initial orientation about the service and contact process. It is not individual legal advice.
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