In the Matter of Elbit Imaging (2018)

• Case Name
• In the Matter of Elbit Imaging (2018)

• Date Filed
• 03/09/2018

• Enforcement Agency
• SEC

• Foreign Official
• Unnamed Romanian government officials.

• Date of Conduct
• 2007 to 2012

• Nature of Business
• Elbit Imaging, an Israeli corporation, is an international holding company with direct and indirect subsidiaries focused on real estate investment and development. Elbit maintains a class of securities on the NASDAQ and registered pursuant to Section 12(b) of the Securities Exchange Act. Plaza Centers NV, a Dutch corporation that develops shopping and entertainment centers, was one of Elbit’s majority-owned indirect subsidiaries.

• Influence to be Obtained
• According to the SEC, from 2007 to 2012, Elbit and Plaza directly and indirectly paid millions of dollars to third-party offshore consultants and a sales agent purportedly for services related to a real estate development project in Romania and the sale of a large portfolio of real estate assets in the U.S. The SEC alleged that Elbit and Plaza made the payments without evidence that the consultants and sales agent had actually provided the services, and the payments were mischaracterized as legitimate business expenses even though some or all of the funds were used to make corrupt payments to Romanian government officials or were embezzled. Further, Elbit and Plaza failed to properly record the payments in their books and records, and failed to devise and maintain internal accounting controls.

• Enforcement
• On March 9, 2018, the SEC issued a cease-and-desist order against Elbit for violations of the books-and-records and internal controls provisions of the FCPA. Pursuant to the order, Elbit agreed to pay a $500,000 civil monetary penalty.

• Amount of the Value
• $27 million.

• Amount of Business Related to Payment
• Not stated. 

• Intermediary
• Consultants; Sales agents.

• Citizenship of Parent Entity
• Israel

• Total Sanction
• $ 500,000

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 500,000

Elbit Imaging

• Citation
• In the Matter of Elbit Imaging Ltd., Admin. Proc. File No. 3-18397 (Mar. 9, 2018).

• Date Filed
• 03/09/2018

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Books-and-Records
  • Internal Controls

• Other Statutory Provision
• None.

• Disposition
• Cease-and-Desist Order, Cease-and-Desist Order

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• Israel

• Individual Sanction
• Consultants; Sales agents.