2.2.c. The Third Charge
In the third indictment (which is not attributed to the defendants, but is brought for the sake of completeness), it is alleged that Mr. Klein and Mr. Grohrer were aware of the existence of misleading details in the financial statements of Via Arcadia and Super Ceramics, and were also aware that their financial statements were consolidated with the annual and quarterly reports of Africa Israel Industries. Despite this, they signed their financial statements and approved their financial statements. As a result of the defendants' actions, according to the indictment, Africa Israel Industries' financial statements included misleading details between the years 2012-2014.
2.2.d. The Fourth Charge
According to the fourth indictment, which is attributed to only Defendant 13, Negev Ceramics, the inventory values in Gibbutz Negev were fictitively increased. According to the indictment, Mr. Ivshitz, with the knowledge and consent of Mr. Motola, instructed Mr. David, Defendant 6, who confessed to the charges against him, and Ms. Yoffe, to make false entries in the documents of the Negev Ceramics Group, which led to the Negev Ceramics Group and Africa Israel Industries reporting in their financial statements overstock. This is in order to present false representations about the Negev Ceramics Group's compliance with its goals. As a result of the defendants' actions, according to the indictment, Africa Israel Industries' financial statements included misleading individuals between the years 2011-2014.
Negev Ceramics is accused of using its organs – Motola, Ivshitz, David V. & Pe, to cause misleading details to be included in Africa Industries' consolidated, annual and quarterly financial statements between 2012 and 2014, all in order to mislead a reasonable investor; caused false details to be recorded in corporate documents and refrained from listing details with the intention of deceiving.
2.2.e. The Fifth Charge
In the fifth indictment (which is not attributed to the companies), it was claimed that as part of the auditor's examination conducted prior to the publication of the financial statements for 2014, the auditors identified some of the false records detailed in charges 1 and 2. Therefore, Mr. Motola, Mr. Ivshitz, Ms. Dori and Mr. Raucherger made false representations to the auditing accountants, in order to disguise the false records and to portray them as inadvertently made and in order to conceal additional false entries in the financial statements of the Negev Ceramics Group and Africa Israel Industries. As a result, the auditors were satisfied, and they approved the financial statements of the Negev Ceramics Group and Africa Israel Industries.