ISRAELI COURT DISMISSES CARTEL APPEAL, RAISES FINES

An Israeli Supreme Court has rejected the bulk of an appeal by the two managers of Avalon Insurance and by the former chief executive of Israel Phoenix Assurance against convictions for co-operating in an insurance cartel, according to a local business news service, Globes . The court also doubled fines imposed following the original trial leaving the co-general manager of Avalon Insurance, Levi Rahmani, to serve six months community service and pay a 600,000 shekel fine and his counterpart and son, Noga Rahmani, to serve three months community service and pay 300,000 shekel. Itamar Borovitz, the former CEO of Israel Phoenix faces the largest fine at 1.2m shekel and a six month period of community service. The companies were also fined with Israel Phoenix facing a penalty of 12m shekel and Avalon 6.6m shekel. The Supreme Court did, however, acquit the trio of fixing motor insurance rates in 1992 and of pressuring brokers in the collective insurance market. But convictions for creating a cartel in business insurance, collective motor insurance, fire insurance and mechanical engineering equipment insurance remain in place.