An Orthodox man convicted for the fraud of more than 5 million shekels

Magistrate's Court in Tel Aviv - Yaffo convicted Shalom Cooperman, aged 43 from Bnei Brak yesterday, for fraud that included the theft of more than five million shekels. Cooperman's fraud began in 2002 and was discovered later, with the outbreak of the financial crisis in 2008.

During the relevant period, when Cooperman began with the fraud method, he was 33, a young man with high intelligence. Seven years before the beginning of the case he founded 'Professional' dealing in investments. The company itself did not prosper and expenses against revenues were large.

Cooperman, using the fraud scam, took a similar approach to that adopted by Bernard Madoff. He would receive money from people complaining for a fixed period against liability to pay an agreed monthly interest and repayment of funds at the end of the period.

For example, one of the many cases brought before the court in the conviction of Cooperman, is the story of a couple from Bnei Brak who were barely able to sustain themselves, having experienced a family tragedy when one baby who was born died and another baby remains disabled.

Due to medical malpractice at birth, the family received compensation totaling 710,000 NIS, whilst 200,000 NIS of which were intended as a reserve for child care and expenses involved. Cooperman suggested the couple to open a managed file, promised monthly interest, but never returned the money or kept his promise.

The fraud was discovered following the financial crisis of 2008, after Cooperman could not meet the interest payments promised to his customers. With the money he stole from customers Cooperman purchased an apartment using a relatives name and invested in a camera store he owned. Parts of the funds were transferred to accounts abroad.

Cooperman presented himself as an investment manager in the capital market and promised his victims that they will receive a monthly interest rate of 1% -2%, well above the market rate. Funds were delivered into the hands of Cooperman personally and not in a managed investment portfolio, after some persuasion on his part that you can save different fees and costs.

Cooperman promised clients, who had no financial education, that beyond the high interest rates, the money funds are guaranteed.

The court ruled that Cooperman "took the money stolen from customers knowing that he cannot return them."

'בחדרי' גם ברשתות החברתיות - הצטרפו!