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David Rubner: "I am a well-to-do person; all told, my assets come to up to $20m"

Alfred Akirov and his company Alrov demand lien on assets of Rubner and startup Net2Wireless

Israeli businessman David Rubner, chairman of startup Net2Wireless as well as other companies, revealed his personal assets to the Israeli courts yesterday. Rubner and Net2Wireless are being sued by Tel Aviv Stock Exchange-traded Alrov and its chief executive, Alfred Akirov.

Alrov and Akirov claim that Rubner fraudulently obtained a $5 million investment from them for Net2Wireless. They are demanding restitution of the sum, equivalent to NIS 22 million. To start with they have petitioned the courts to impose a lien for that amount on assets belonging to Rubner and Net2Wireless. Akirov claims that otherwise, if the courts rule in his favor, Rubner and the startup may not honor the verdict.

I am a well-to-do person with real estate, houses and apartments. I have stocks and options worth millions of dollars. I have options with

ECI Telecom


Check Point Software Technologies

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(Nasdaq:CHKP) and I have other investments," Rubner said.

Later in his examination, Rubner listed the value of his assets. His real estate is worth between $3 million and $4 million. His ECI stock is worth $3 million to $5 million, in addition to options worth several millions more. His Check Point stock is worth over $10 million in addition to other money in stocks, banks and overseas accounts.

If we include everything... this comes to between $17 million and $20 million, Rubner concluded four times as much as the lawsuit.

Rubner noted during his examination that Net2Wireless' intention is to make all our shareholders happy by giving additional stock to investing shareholders, due to the erosion in the value of technology stocks on Nasdaq. But Rubner said the company would not be giving out any cash.

Akirov claims that Rubner pressed him to commit to the investment quickly, without leaving time to examine Net2Wireless thoroughly. During his cross examination, Rubner claimed never to have said the investment schedule did not allow examination of the company. He added that with a young company such as Net2Wireless, ten days or less would have been enough to make the necessary inquiries.

Rubner further claimed that the options he received from the company were not intended to recruit other investors in the company. I have never in my life told anybody to buy any stock, throughout my entire career, ever since I've been involved in publicly traded companies, Rubner said.

The attorneys for the prosecution wanted to know why Rubner did not advise Akirov about the value of his stocks. I didn't tell him because this was not the topic of the conversation," Rubner said.