However, these are serious criminal offenses that undermine social structures and cause extensive damage. Often, much broader than that caused by the offender who commits a 'regular' property offense. Accordingly, this court has been instructing for a long time that a stringent punishment trend should be taken for economic offenses."
- In addition to the aforesaid, consideration should also be given to the fact that the harsher punishment for economic offenses, all the more so those whose enforcement on the criminal level at the beginning of its journey (such as the offenses relating to the establishment and offering to trade in a trading arena without a license) must be done gradually (see, for example, with the necessary changes, the words of Justice Danziger inCriminal Appeal 1656/16 Davidovich v. State of Israel (March 20, 2017), paragraph 107 (hereinafter: the Davidovich Judgment)).
- I have examined the case law to which the parties have referred, with all that is similar and different from our case, as well as another relevant ruling, and the following are examples to which I have found to be referred:
- Criminal Appeal 7023/12 Alon Sharon v. State of Israel (January 21, 2013) (Criminal Case (Tel Aviv District) 9883-07-10 State of Israel v. Guetta et al . (September 15, 2012)) where the appellant was convicted, on the basis of his confession, along with others, of committing multiple offenses of theft by an authorized person and of 4 offenses of fraudulently influencing the price fluctuations of securities. According to the facts, the appellant and Guetta, another defendant in the indictment, carried out 354 coordinated transactions and stole a total of ILS 352,545. Guetta was charged with another charge along with other defendants for similar offenses amounting to ILS 91,758. The District Court sentenced the appellant to 18 months in prison alongside an accompanying punishment. Guetta was sentenced to 21 months in prison and an accompanying sentence. The Supreme Court reduced the actual prison sentence imposed on the appellant and set it at 14 months, while referring, inter alia, to the fact that the scope of the offenses was significant, but not at the highest level, that there was no dramatic impact on the prices of securities from the acts, and that the offenses were not committed while the appellant abused his power of office. In addition, weight was given to the appellant's individual circumstances.
- Criminal Case (Tel Aviv District) 73321-12-20 State of Israel v. Babitsky (January 4, 2023) where the defendant was convicted on the basis of his confession, as part of a plea bargain, of multiple offenses of theft by an authorized person, fraudulent receipt of something under aggravated circumstances, forgery with the intention of receiving something through it under aggravated circumstances under the Penal Law, multiple offenses of fraudulently influencing the price fluctuations of securities under the Securities Law, and two offenses of managing portfolios without a license under the Regulation of Investment Consulting, Investment Marketing and Investment Portfolio Management Law, 5755-1955.
The defendant, who was well-versed in the capital market, operated for a number of years and privately managed investment portfolios for himself and others through accounts under his control, including by trading options. The defendant made false representations to his clients, assured them that he was achieving exceptional trading results in their success, and presented them with a false representation that their investment was mostly not at risk. In addition, he falsely presented himself as having advanced degrees, experience in the capital market, and expertise in the field of options. He also falsely presented himself, in some cases, as holding a license to manage portfolios on behalf of the Israel Securities Authority, and the company he owned as a large and safe company. In his actions, he influenced the trading cycle of securities by setting artificial prices, fraudulently misappropriated customers' funds in the amount of at least ILS 301,480, and managed customer portfolios without a license. Most of the defendant's activity was carried out after he was threatened by criminal elements.