The role of the Investigations Unit is to conduct investigations of suspected criminal offenses in the financial market, and administrative inquiries into suspected administrative violations related to the financial market.
The Unit operates in teams of attorneys, accountants, economists, and technology experts. The units’ investigators undergo training in the fields of investigation, interrogation, and in the specific professional areas under their responsibility. The Investigations Unit conducts complex and intricate investigations in Israel and overseas, concerning securities fraud, insider trading, corporate reports designed to mislead the investor public, transactions with controlling shareholders, and other issues. In addition to these activities, the Unit also conducts administrative inquiries at the instructions of the ISA chair, to examine suspected administrative violations (defined in the Securities Law) committed by regulated entities, investors in securities, or other individuals.
Stages of a Criminal Investigation:
1. Referral of cases by the intelligence and trading units is subject to the decision of the ISA Chair.
2. The Investigations Unit gathers evidence (covert investigation).
3. The Unit initiates an overt investigation.
4. The Unit analyzes the findings and draws conclusions.
5. The Unit refers the material and evidence to the Tel Aviv District Attorney’s Office (Taxation and Economics), which assumes responsibility for the case.
The Investigations Unit - Administrative Inquiry
Opening of an administrative inquiry according to the decision of the Israel Securities Authority according to paragraph 52RR, following an initial investigation by the intelligence Unit or the Trading Unit.
2. Adding to the evidence in the file (undercover inquiry).
3. Execution of an administrative inquiry.
4. Analysis of the material and drawing of conclusions.
5. Submitting of material for consideration and further action to the Administrative Enforcement Department.