In recent years, Israel has witnessed a series of fraud scandals that left tens of thousands of victims and losses amounting to hundreds of millions of shekels. From the collapse of Kela Fund led by Amir Bramly, through cases such as Neto Finances, Slice, and up to numerous recent ventures of investment firms, it has been proven that the dream of quick wealth ends in disaster for investors.
Globally, too, the collapse of Enron, the downfall of Bernie Madoff, or the schemes of Bernie Cornfeld, which also ensnared Israeli investors, all reinforce the same simple conclusion: There are people you should not invest with. Warren Buffett phrased it best: “When you’re looking for people to invest with, look for three qualities: integrity, intelligence, and energy. And if they don’t have the first, the other two will kill you.”
In the investment world, where a single decision can either create vast value or wipe out accumulated wealth, Buffett’s words gain even greater relevance. Intelligence and energy are necessary for success – but without integrity, they turn into a double-edged sword.
Wealth through fraud
The problem is that wealth gained through fraud is often admired, even celebrated, by the business community. In a world where results are measured only in money, investors, clients, and the public are impressed by the numbers – not by the way they were achieved. People who deceive investors are sometimes seen as icons of success. This admiration can be dangerous, as it creates incentives for new fraudsters to emerge.
Private investors are often drawn to “extraordinary success stories,” even when they are aware that the method is not entirely clean. On several occasions, I have raised the question: Why do people invest with crooks? The answer lies in a culture that legitimizes fraud by glorifying immediate profitability.
The sages of Jewish tradition emphasized the moral damage caused by theft: “He who robs his fellow of even a penny is as though he takes his soul” (Talmud Bava Kama 119b). Fraud is not only harm to one’s pocket – it wounds human dignity and erodes the trust we build with one another. Public trust, the central engine of a healthy society and economy, is eroded when wealth is accumulated without justice.
The message is simple: Those who are willing to profit by cooperating with fraudsters, or by turning a blind eye, must understand that no scam remains hidden forever. The truth always comes out, even if delayed. Admiration for fraudsters does not conceal reality. The business world may marvel at profitability, but time, ethics, and the law – however slow – ultimately impose clear boundaries.
True success requires integrity
True success is not measured only by money but also by the way it is achieved. Wealth gained without integrity is temporary, and society eventually pays the price. As the prophet Jeremiah warned: “He who amasses wealth unjustly will not endure.”
One of the main reasons many fraudsters continue to act without fear is the slow judicial system, which too often fails to enforce meaningful deterrence. Legal proceedings can drag on for years; labor courts frequently side with employees even when theft or false testimony is proven; and punishments for fraud or embezzlement are far from intimidating.
For instance, when an employee steals an entire client list – data collected over many years with massive financial investments – and the court imposes a fine of only NIS 100,000, the message is clear: Pressing a single key to steal years of work worth millions is worthwhile.
In conclusion: Wealth that is not gained honestly will not endure – even if the public idolizes those who flaunt it. Those seeking lasting success must remember that fraud may yield temporary profits, but eventually even those who think they are celebrating with the fraudsters end up paying the price in full – with heavy financial losses and irreparable damage to their reputation and personal security.
The writer is founder and CEO of Profimex.