Three Years After Sliced Financial Scandal, Savers Face Prolonged Wait for Funds
Three years after the NIS 1 billion Slice provident fund scandal, most victims face prolonged uncertainty and delayed justice as criminal investigations stall, though a court-approved settlement plan opens a recovery path.
Three years after the exposure of the massive Slice provident fund scandal, in which some 7,500 savers lost about NIS 1 billion, a comprehensive investigation reveals the ongoing struggles of victims, the stagnation of criminal probes, and recent legal developments.
The scandal involved transferring individually managed provident funds (IRA) through Slice to foreign investment funds designated as unauthorized by the Capital Market Authority. Appointed special manager CPA Efi Sandrov has been tracking the missing funds abroad. While authorities identified potential illegal conduct, criminal investigations by Lahav 433 have stalled, and police complaints filed by victims have been dismissed.
Tel Aviv District Court Judge Sigal Yakobi recently criticized law enforcement's lack of action, noting a grave concern that the funds were not used to benefit members. Consequently, the court ordered the matter to be forwarded to the State Attorney and the Attorney General for review. Judge Yakobi highlighted a coordinated network that diverted savers from conservative instruments to prohibited alternative funds without proper disclosure.
Out of NIS 1.06 billion transferred to Slice, some NIS 845 million went to foreign accounts. While about NIS 170 million has been collected under a recently approved settlement plan, most victims face prolonged uncertainty. Only a small group of savers who transferred funds after September 6, 2023, before the transfers were halted, are expected to recover their full losses soon, starting with an 80-year-old saver who recently received about NIS 400,000 back.
