President Isaac Herzog cut the prison sentence of former SodaStream CEO Daniel Birnbaum, who was convicted of insider trading, from 60 days to 23 days. Birnbaum began serving his sentence on November 1, 2023 but was released on November 24, after presidential clemency, according to an announcement presented to the Tel Aviv Economic Court by his attorney, during the trial in which former SodaStream employee Ayala Sara Cohen was found guilty on three counts of using insider information.
The events for which the two were convicted took place in 2017-2018. The two had a close relationship, during which Cohen was exposed to the company’s activities and business, and even expressed interest in purchasing the company’s shares.
Birnbaum was convicted that, by virtue of his position as CEO of the company, he revealed the positive results of a report that was expected to be published, and shortly before the publication date of the report, he discussed this with Cohen. She purchased SodaStream shares for her account for NIS 150,000, and a few months later sold them for NIS 178,000, making a profit of NIS 28,000.
When Birnbaum was informed that Cohen had purchased the company’s shares he expressed his anger that she had done so even though he had asked her not to trade in the shares. Cohen admitted that Birnbaum had given her insider information on two occasions. With the insider information she had bought SodaStream shares in three different deals worth NIS 450,000 and sold them for a profit of NIS 180,000.
Cohen confessed in a plea bargain that did not include an agreement about her punishment. She plans asking for the conviction to be canceled after the review by the trial service. Birnbaum was convicted last October and was finedc NIS 50,000 in addition to the 60 day prison sentence. He pledged to donate a similar sum to the war effort. In his sentencing, the judge mentioned Birnbaum’s help to the public and soldiers during the current war.
Published by Globes, Israel business news – en.globes.co.il – on February 19, 2024.
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