Nochi Dankner
Nochi Dankner | |
|---|---|
| Born | November 13, 1954 Tel Aviv, Israel |
| Occupation | Entrepreneur |
| Known for | Principal shareholder of IDB Group; founder of Ganden Group; convicted of securities fraud |
Nochi Dankner (; born 13 November 1954) is an Israeli entrepreneur and serves on the board of the Jewish Agency for Israel. He was the principal shareholder of the IDB Group and established the Ganden Group, which ultimately resulted in his personal insolvency amounting to 400 million NIS. In 2017, he was found guilty of Securities Fraud due to artificially boosting his company's stock price to secure funding amid financial challenges.
Biography
Born in Tel Aviv to Zahava and Yitzhak Dankner, who founded Dankner Investments, Nochi Dankner was drafted in 1972 into the Israel Air Force pilot academy but left after one year. He then served in air force intelligence, concluding his military career with the rank of captain. While still enlisted, he initiated his first enterprise in 1975—a wine and cheese establishment named Botticelli located in Old Jaffa—partnering with Modi Cidon, a close associate and co-owner of Gitam Advertising. Despite military regulations forbidding business ownership, their frequent art exhibitions at Botticelli earned official approval.
Dankner pursued studies in political science and law at Tel Aviv University, where he also edited the law review journal. After completing his degree, he interned at Yigal Arnon & Co law firm before co-founding the Dankner-Lusky legal practice alongside Moshe Lusky.
Ganden Tourism
In 1996, Dankner launched Ganden Tourism and Aviation together with family members and other investors. Operating as a holding company in the aviation and tourism sectors, Ganden became Israel’s third-largest group after El Al and Knafaim. It gained control over Open Skies, which represented foreign airlines within Israel, and acquired stakes in travel agencies such as 3rd Millennium, Natour, and Unitel. Its most notable acquisition was IsraAir airlines. Eventually, Ganden was sold to IDB Development amid controversy.
Bank Hapoalim
In 1997, Dankner and his cousin Danny Dankner spearheaded Melach Industries—under their family’s control—to purchase an 11.6% stake in Bank Hapoalim for $358 million USD. This transaction was entirely financed through a loan from Bank Leumi, secured by land appraised at $200 million based on government agreements granting extensive construction rights. The loan remains unpaid to this day.
The valuation of this land became a focal point in an investigation into Dankner involving allegations of bribery and money laundering. The actual market value of the land was considerably lower than Bank Leumi’s assessment, casting doubt on whether the loan would have been approved under accurate market conditions.
IDB Acquisition
In May 2003, Ganden Holdings joined forces with the Livnat and Manor families to acquire control over IDB Group, one of Israel’s largest holding companies. The acquisition was completed with $54 million USD provided by the Israeli pension fund Mivtachim. Dankner and his partners held a 55% ownership stake in IDB Holdings.
During his initial seven years leading IDB, Dankner oversaw significant growth through acquisitions: Discount Investments purchased Cellcom in 2005; IDB acquired Koor Industries in 2006; and Shufersal took over Clubmarket.
In 2011, Dankner divested agrochemicals producer Makhteshim Agan to China National Agrochemical Corporation (ChemChina), a transaction lauded by Prime Minister Benjamin Netanyahu as a substantial economic accomplishment. That same year, Forbes ranked him eleventh among Israel’s wealthiest individuals.
Dankner controlled companies such as Cellcom, Shufersal, Netvision, Hadera Paper, and Nesher Cement through IDB Holdings. Additionally, he held stakes in Clal Insurance and Bank Hapoalim. The combined valuation of these enterprises was approximately 400 billion NIS.
On December 17, 2013, Dankner lost control over IDB. Subsequently, on January 5, 2014, the Tel Aviv District Court transferred management authority to the Extra-Elshtein Group led by Eduardo Elstein and Motti Ben Moshe.
Fraud
After experiencing setbacks with ventures such as a Las Vegas hotel initiative and the failed Maariv newspaper acquisition, IDB, which was publicly traded at the time, endured substantial financial losses amounting to millions of dollars. In an effort to maintain control over the company, Dankner enlisted the help of Itay Strum, broker Adi Sheleg, and others to engage in the purchase and sale of IDB shares, thereby artificially boosting stock prices during a February 2012 public offering intended to raise capital. Dankner provided Strum with eight million shekels to drive up share prices by acquiring stocks at inflated rates, fully aware that their actual value was lower—this action constituted illegal manipulation of the stock market.
Dankner faced charges related to securities fraud and market manipulation. His case was heard at the Tel Aviv District Court under Judge Khaled Kabub. Despite receiving numerous character endorsements from entities like the World Jewish Congress and Bar-Ilan University, along with support from notable figures including IDF officers and politicians, Dankner was found guilty in July 2016. On 6 December 2016, he received a sentence of two years imprisonment and a fine of 800,000 NIS, accompanied by an additional suspended sentence lasting one year. Prosecutors had initially requested a prison term ranging from three to five years. Judge Kabub took into account Dankner’s philanthropic activities and personal financial setbacks when determining the sentence.
Itay Strum was also found guilty and sentenced to one year in prison along with a fine of 500,000 NIS. Additionally, IDB Holdings and Strum’s ISP Trading Group were penalized with fines of 250,000 NIS and 150,000 NIS respectively.
Dankner appealed his conviction to the Israeli Supreme Court, which on 29 August 2018 dismissed the appeal and increased his jail term to three years while extending Strum’s sentence to two years. Dankner commenced serving his prison sentence on 2 October 2018 at Maasiyahu Prison and was released early in February 2020.