Israeli pension fund collapse leaves 7,500 savers facing losses of hundreds of millions

court documents filed in Tel Aviv have exposed what regulators are calling the largest financial fraud in Israel's history, with approximately 7,500 pension savers facing losses of hundreds of millions of shekels. The authorised trustee of the collapsed Slice pension fund company has filed a landmark lawsuit for roughly one billion shekels against the Goldberg family, led by the company's former chief executive, Assaf Goldberg.

Background and Context

The case centres on Slice, a pension fund company that allegedly transferred around 850 million shekels in members' savings to unregulated foreign investment funds, with a significant portion of the funds never returning to investors. According to court filings reviewed by journalists, the money was moved through personal pension funds (IRAs) and study funds, creating a complex trail that has left investigators struggling to recover assets. The trustee, CPA Effi Sandrov, has described the case as "one of the most severe in the Israeli pension savings sector's history" and "the largest and most serious breach of trust against pensioners."

Key Figures and Entities

The lawsuit targets Assaf Goldberg, Slice's former CEO, whom court documents allege "failed in every possible way in his role" and operated the company "without the necessary knowledge, experience, or qualifications." The complaint also implicates the broader Goldberg family, whom the trustee alleges benefited from the misappropriated funds. Court records further describe Goldberg's connections with "dubious insurance agents, some of whom have criminal backgrounds," suggesting a network that facilitated the alleged fraud. The company's board of directors, compliance officers, and external auditors are also identified in the lawsuit as having failed in their oversight duties.

Legal and Financial Mechanisms

The lawsuit details how Slice's internal control mechanisms apparently collapsed, allowing funds to be moved through unregulated offshore vehicles without proper oversight. According to the filing, the entire governance structure failed, from management that operated "like a grocery store" to gatekeepers who "abandoned their duties." The complex web of transactions involved personal pension funds and study funds, which were then allegedly transferred to unregulated foreign investment funds outside the scrutiny of Israeli financial regulators. This created what the lawsuit describes as a "foolproof recipe for collapse," with the result that "hundreds of millions of shekels disappeared, and thousands of savers—some elderly—were left with nothing."

International Implications and Policy Response

The collapse of Slice highlights significant gaps in pension fund oversight both within Israel and in the international financial system. The case demonstrates how funds can be moved through unregulated offshore vehicles, evading detection by domestic regulators. Israeli authorities have since faced questions about the adequacy of their supervisory frameworks for pension management companies. The lawsuit particularly criticises the failure of multiple oversight mechanisms, including board supervision, internal compliance procedures, and external auditing standards. Financial regulators in other countries are now examining whether similar vulnerabilities exist in their own pension systems.

Sources

This report is based on court documents filed in Tel Aviv by CPA Effi Sandrov, the authorised trustee of the Slice pension fund company. The information includes details from the landmark one billion shekel lawsuit against the Goldberg family and public statements made by the trustee regarding the collapse of the pension fund company.