Shay Lipman bought shares through his parents’ bank account, and that is how Value Base’s own rules on staff trading were broken for years. On Sunday the Tel Aviv District Court convicted the former senior analyst of insider trading, securities fraud, and fraud and breach of trust in a corporation. He had admitted to using his position to make money trading in public real estate companies, the Jerusalem Post reported.
Prosecutors and defense have agreed a plea deal. Both sides jointly asked for 18 months in prison and financial sanctions totaling NIS 275,000. Judge Dana Amir set a sentencing hearing for September 6.
What the indictment says
Lipman worked as a real estate analyst at the investment bank from 2016 to 2021. He analyzed listed property companies, published reports on them, and advised on or accompanied some corporate deals. According to the amended indictment, that gave him sensitive and sometimes confidential information about planned business moves before it reached the market.
In three cases he traded on it. They involved Rani Zim Shopping Centers’ acquisition of control in Midas, the battle for control of Gav-Yam, and the planned sale of a controlling stake in the Sarfati construction company. Prosecutors said he bought shares before the news came out, then sold after the price rose or stood to gain from it.
The second charge is different. In 11 more cases, he bought shares shortly before publishing favorable analyses of the same companies. A recommendation from a recognized financial institution can move demand and price, and the indictment says he planned to sell if his positive call lifted the stock. His reports did not mention that he held the shares or intended to sell them.
Prosecutors put his profit at roughly NIS 225,000. They said he acted repeatedly over several years and systematically exploited his role and the trust Value Base placed in him.
The bank argued that punishment for securities offenses, insider trading in particular, has to be severe enough to deter others and protect investor confidence in the capital market.
