This week, the Tel Aviv District Court witnessed one of the steepest downfalls in the history of Israel’s economy and capital market. Nochi Dankner, the “golden boy” of the Israeli economy who until about three years ago held sway over a tremendous business empire, was convicted of securities fraud July 4. Dankner was found guilty of carrying out millions of dollars' worth of fraudulent transactions on behalf of his company IDB Holdings Corp. in an attempt to raise share prices and save his empire from collapse.

Dankner was, until recently, the most powerful man in the Israeli business world. Prime ministers waited at his door, and the banks worshipped him. Journalists, mayors and politicians made pilgrimages to see him. Dankner was an impressive, well-spoken man with a magnetic personality. People used to say that if he wanted, he could easily transition from business into politics and secure Israeli premiership.

Instead, Dankner now awaits what is expected to be an actual prison sentence.

Dankner is paying for the sin of arrogance and greed, for not reading the writing on the wall and believing everything that people said about him. His fall from grace did not begin this week. Three years ago, Dankner had already lost the IDB Holdings business empire over debt arrangements and insolvency. Now, Dankner is likely to lose his personal freedom as well. He has almost no personal capital left. Recently, he vacated the luxurious villa where he lived for the past decade.