Israeli tycoon begins 3-year prison term in securities fraud

MarketsAssociated Press

One of Israel's most prominent businessmen has entered prison to begin a three-year term for securities fraud.

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Former IDB Holding Corp. controlling shareholder Nochi Dankner began his term Tuesday for his role in carrying out millions of dollars' worth of fraudulent transactions in an attempt to influence the share price of the troubled company.

IDB took on millions of dollars in debt following a series of bad business deals. The courts wrested control of IDB away from Dankner as a result.

He was initially sentenced to two years but the term was later extended.

Dankner was a favorite of Israel's business community, often credited with helping rescue Israel's economy at the height of a Palestinian uprising. Under his leadership, IDB became Israel's largest holding company and Dankner became a celebrity.