More than two years since the Slice matter came to light, involving the loss of around NIS 850 million belonging to savers, signs of headway appear in efforts to recover the assets. Following a May settlement between Slice and Harel, a new framework agreement has been reached with funds handled by the Finbert insurance agency, a key player in the incident. Subject to court and member assembly approval, investors may select from two options for reclaiming portions of their holdings.

The pact emerged from extended talks involving member representatives, attorneys Eitan Erez and Mor Ben-Shoshan, alongside fund counsel Adv. Alon Ron supported by attorneys Orel Hasson, Oded Savoray, and Roy Saluki. Marking the first such deal with an involved fund, it seeks to initiate actual repayments to those who invested through Finbert.

Under the terms, members face two paths upon approval. The initial route offers swift liquidation, releasing $27 million promptly to deliver substantial sums to participants in a brief timeframe. The alternative focuses on finishing the underlying projects, potentially yielding greater returns though requiring extended timelines.

Selection occurs at a members' assembly convened after court clearance. Execution proceeds solely post judicial and member endorsements.

Grasping the agreement's weight requires recalling the affair's origins. Viewed as Israel's largest fraud in a regulated financial entity, estimates place vanished saver funds at about NIS 850 million, quadruple the Trade Bank incident scale.

Slice, owned by the Goldberg and Tocatly families, oversaw roughly NIS 4.2 billion. Of this, NIS 1.2 billion in standard provident funds transferred to Harel, suggesting likely member recovery. The core issue centers on NIS 3 billion in personally managed provident funds placed in overseas vehicles, many deemed noncompliant red funds by the Capital Market Authority, with much of the capital still untraced.

Months after exposure, Capital Market Commissioner Amit Gal named CPA Effie Sanderov as Slice's authorized manager tasked with asset location and fund restitution. To date, details exist on only about NIS 380 million of the missing sum.

Reviews revealed Slice lacked systematic asset attribution processes. Data often resided in Excel files, some members lacked dedicated custodian accounts with assets pooled in transit, certain holdings funded payments to others, and multiple investments lacked valuations. Concerns also arose over placements in unauthorized instruments.

Alongside the manager's work, legal tensions surfaced. Adv. Eitan Erez, representing members, advanced direct deals with involved parties and secured court backing, despite opposition from the manager who viewed it as circumventing his process, while Erez argued for quicker returns.

Recent disclosures highlighted internal critiques of Capital Market Authority oversight. The Finance Ministry internal auditor commenced review in June 2025 of supervision measures, with findings drafts pending and no completion schedule set due to complexity. This emerged from the state's High Court response to a petition by the Economic Unit association seeking a government inquiry, which the state countered by noting ongoing lessons-learned efforts and the audit, rendering an extra committee unnecessary.

The initial recovery step occurred on May 25, 2026, via a Tel Aviv District Court filing for settlement approval between Slice's manager and Harel. Harel committed to paying about NIS 33.2 million, equating to roughly 90 percent of the professional liability policy coverage after a NIS 95,000 deductible.

Upon approval, funds enter a dedicated account solely for Slice members per court and commissioner directives. The deal covers only professional liability insurance and permits further actions against others, including ex-directors and officers, with the manager affirming continuation of recent lawsuits.

The Finbert-linked agreement signals ongoing strides without concluding the matter, potentially enabling select investors to opt for structured recovery paths rather than awaiting litigation outcomes.

The authorized manager's response

Per the authorized manager: The Finbert cluster arrangement submitted to the court was developed without his input, remains unacceptable, and his detailed stance will follow in proper court proceedings. The submission came from private counsel lacking clarity on represented member numbers or engagement terms.

Even now, the outline presents core issues in substance and form. It appears to require members to forgo about 49 percent of lifetime savings at the outset, leaving the rest with unidentified parties. The next phase offers either an uncertain recovery of the remaining 51 percent alongside rights waivers or retention of those funds with entrepreneurs for at least five to six years amid substantial risks and possible further losses.

Moreover, the submission's omission of appendices prompts questions on involved parties, foreign fund backers, actual obligations, and offered collateral, particularly assets abroad under complex structures and foreign laws where realization prospects, third-party rights status, and effectiveness remain unclear.

Thus, insufficient certainty exists on asset values, realization feasibility, timelines, actual returns, or full rights protection.

Notably, a significant asset, the Netanya penthouse, carries a foreclosure order registered September 23, 2024, favoring Slice under management, with confidential court proceedings ongoing.

The manager already controls additional sums for Finbert member distribution and has proposed arrangements with red fund entrepreneurs yielding higher member returns, some approved.

The manager will persist in pursuing claims against all involved and securing optimal member-focused arrangements.