Following the findings of the investigations, in May 2015, Africa Industries made a retroactive correction to its financial statements, and as part of this, the company's capital was reduced by more than NIS 73 million, in addition to the amendment in its financial statements for 2014.
Defendants 13-15, members of the Africa Israel-Negev Ceramics Group, India and were convicted, according to their confession, in an amended indictment (last amended on July 20, 2020) of committing many offenses of false registration in corporate documents, under section 423 of the Penal Law. In addition, Defendant 13, Negev Ceramics Company, was convicted of committing 41 reporting offenses under Section 53A(4) of the Securities Law; Defendant 14, Via Arcadia Home Design, for committing 18 offenses under this section of the Law, and this defendant, Super Ceramic Home Finishing Products, was convicted of 13 offenses under this section.
- On the Defendants and the Charges
The description of the defendants, and attributed to them, in its entirety, as stated in the indictment, and without this expressing any position as to the correctness of what is stated therein, except with regard to the confessions of the defendants who have already been convicted on the basis of their confessions.
2.1.a. The Defendant Companies
Defendant 12, Africa Israel Industries is a public company (hereinafter: Africa Israel Industries), which was traded in the years 2011-2015, on the Tel Aviv Stock Exchange.
Defendant 13, Negev Ceramics Ltd. (hereinafter: Negev Ceramics), was, between the years 1987-2012, a public company whose shares were listed for trading on the stock exchange. 90% of its shares were held by Africa Israel Industries. On February 5, 2012, Negev Ceramics was delisted from TASE and became a private company wholly owned by Africa Israel Industries. This defendant confessed and was convicted.
Defendant 14, Via Arcadia Home Design Ltd. (hereinafter: Via Arcadia), is a private company, wholly owned by Negev Ceramics, as of December 31, 2012. This defendant confessed and was convicted.