Israel’s State Tax and Economics Attorney today told former SodaStream CEO Daniel Birnbaum and additional suspect Ayala Sara Cohen, that she is considering indicting them, subject to a hearing, on suspicion of insider trading offenses and perverting the course of justice.
According to the indictment, Birnbaum allegedly passed on to Sara Cohen inside information on two occasions regarding carbonated beverage manufacturer SodaStream in 2017 and 2018. With the inside information in her possession, Sara Cohen bought SodaStream shares on three occasions for NIS 450,000, on which she gained about NIS 180,000. Working together, the pair also allegedly attempted to mislead the course of the investigation.
The case has been investigated by the Israel Securities Authority’s intelligence investigations and trading control department.
Birnbaum and Sara Cohen are suspected of committing insider trading, fraud and breach of trust around the acquisition of SodaStream by PepsiCo for $3.2 billion. Birnbaum was arrested in October 2019 by the Israel Securities Authority and released to house arrest.
Birnbaum insists that he is innocent and says the “investigation is a bubble that will burst.”
Presumption of innocence: Daniel Birnbaum and Ayala Sara Cohen are only suspects in committing the aforementioned offenses and have not been convicted of any crime and have the right to a presumption of innocence.
Published by Globes, Israel business news – en.globes.co.il – on April 6, 2021
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