B.S.D CROWN Ltd
(LSE:BSD)
(the "Company")
Ramat
Gan, Israel, 17 January 2018
Company Update
Further to Company's announcements dated 20 June 2017, 12 September
2016, 3 August 2016 and
17 May 2016 the Company was informed
that on 15 January 2018 an indictment
was filed at the economic department of the Tel Aviv District Court , against the former
ultimate controlling shareholders of the Company, Mr. Alexander Granovsky and Mr. Gregory Gurtovoy and against the former Chief
Executive Officer of the Company, Mr. Israel Jossef Schneorson
(together herein, the "Accused").
According to the indictment the Accused used the deposits of the
Company's and its parent company, BGI Investments (1961) Ltd., that
were deposited in foreign banks, as collateral for loans taken by
private companies related to the Accused, without having received
applicable approvals by law. According to the indictment, the total
amount of the misappropriated funds by the Accused, is USD 60 million.
The indictment attributes to the Accused to the following
infringements: theft by officer, fraudulent conversion, fraud and
breach of trust, falsification of corporate documents, breaches of
reporting obligations under the Israeli Securities Authority Law,
non-compliance with the provisions of the Israel Securities
Authority with respect to misleading reasonable investors and
offenses under section 4 of the Israeli Money Laundering Law.
The Company wishes to clarify that the Accused no longer hold
any positions in the Company and / or any of its subsidiaries.
Enquiries:
Joseph Williger, Active Chairman
Yossi@ydekel.co.il