Next Gen CFO Resignation Sparks Securities Authority Intervention and Scrutiny
Israel's Securities Authority forced Next Gen to disclose CFO Dan Hillerovitz's resignation reasons after he accused management of withholding critical financial data.
The Israel Securities Authority has intervened, forcing Next Gen, led by CEO Harel Hershtik and Chairman Yaakov Amidror, to disclose the circumstances behind the resignation of CFO Dan Hillerovitz. Five days after the initial resignation announcement that lacked any explanation, it emerged that Hillerovitz stepped down because Next Gen allegedly withheld information and documentation regarding company bank accounts, hindering his professional duties. In response, Hershtik claimed that Hillerovitz resigned hastily ahead of a disciplinary hearing concerning alleged problematic conduct.
Hershtik, who was convicted of murder in his youth for the killing of snake catcher Yaakov Sela and served a 25-year prison sentence before being released on license, became the first person with a murder conviction to head an Israeli public company. Chairman Amidror, a former head of the National Security Council, previously submitted testimony that aided Hershtik's early release. Next Gen, classified as a shell company, was suspended from trading in May after failing to submit its 2025 financial reports on time.
Following pressure from the Securities Authority, Next Gen published a correction detailing Hillerovitz's resignation letter, in which he stated that he faced difficulties obtaining regular information and that requests for bank account documentation went unanswered. Hillerovitz noted that external bookkeepers also lacked supporting documents for payments authorized by the CEO. Hershtik categorically rejected the allegations, claiming they were a pretext and that the company operates with full transparency.
Similar governance and financial reporting issues have surfaced at Axilion, another company controlled by Hershtik and Amidror, where shareholders recently petitioned the Tel Aviv District Court to convene a special meeting to oust the current board.
