The SEC has pressed charges against Israeli holding company Elbit Imaging LTD, and fined them $500,000 to settle violations of the FCPA books and records and the internal controls provisions. The company spent millions of dollars on a real estate development project in Romania through third-party offshore consultants and a sales agent, however, to the company’s knowledge, the services may not have even been provided.
Elbit was accused of allegedly failing to maintain internal accounting controls sufficiently and did not provide enough information to establish that the funds were only being used as authorized instead of illicitly.
The SEC investigation was first disclosed by Elbit in an SEC filing in April 2016 but was not resolved through an administrative order until March 9, 2018. Elbit, however, did not confirm or deny the SEC findings in the settlement.
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