Post by Sapphire Capital on Aug 3, 2008 2:39:49 GMT 4
August 1/2008
Gaydamak to be indicted for fraud and money laundering
By Amit Benaroia, TheMarker
The State Prosecutor's Office delivered Arcadi Gaydamak another serious blow Thursday, informing him that it intended to indict the billionaire for aggravated fraud and money laundering. Before the indictment is filed, Gaydamak will be entitled to a hearing to try to convince the prosecution to drop the matter or reduce the severity of the charges.
Gaydamak and two associates, Nahum Galmor and Shlomo Recht, are suspected of defrauding the shareholders of a Dutch company by telling them that Galmor was the one interested in buying the firm, while it was really Gaydamak behind the $50 million offer. Recht was formerly the chairman of Poalim Trust Services. Hapoalim Trust Services is also charged in the indictment.
"Those involved allegedly attempted to conceal Gaydamak's identity due to fears that representatives of the shareholders would not agree to sell him the company or negotiate with him," the Justice Ministry said in a statement. The ministry said this is how Gaydamak and Galmor used a firm wholly owned by Bank Hapoalim to commit fraud and money laundering.
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Thursday's announcement noted that the alleged crimes were committed under aggravated circumstances, as those involved were international businessmen and a banking corporation.
Gaydamak's office responded to the charges: "For a long time Gaydamak has seen himself as the object of political persecution. The irresponsible decisions of irresponsible people are not worth responding to."
Bank Hapoalim responded: "We cannot respond to such reports. In any case, Bank Hapoalim and its subsidiaries have always acted and are acting strictly to keep the law."
The prosecution alleges that each party involved, for whatever reason, acted together to carry out a fraudulent deal. The claim is that the money was transferred from Gaydamak's account, managed by Poalim Trust Services via a Bank Hapoalim branch on Tel Aviv's Hayarkon Street, to another firm's account, also managed by Poalim Trust Services. The money was then returned to Gaydamak's account.
Originally the suspects had been thought to have only committed a more minor technical violation of money-laundering laws by not reporting the transfer of the money.
The investigation started in 2005, and Gaydamak and others have strongly criticized the length of time involved. In September 2006, Gaydamak and others were given a hearing on the money-laundering matter, and since then he has been called for questioning time after time to "complete the investigation." The current decision to file an indictment was made after last week's questioning of Gaydamak by the police's National Serious and
International Crimes Unit.
Gaydamak to be indicted for fraud and money laundering
By Amit Benaroia, TheMarker
The State Prosecutor's Office delivered Arcadi Gaydamak another serious blow Thursday, informing him that it intended to indict the billionaire for aggravated fraud and money laundering. Before the indictment is filed, Gaydamak will be entitled to a hearing to try to convince the prosecution to drop the matter or reduce the severity of the charges.
Gaydamak and two associates, Nahum Galmor and Shlomo Recht, are suspected of defrauding the shareholders of a Dutch company by telling them that Galmor was the one interested in buying the firm, while it was really Gaydamak behind the $50 million offer. Recht was formerly the chairman of Poalim Trust Services. Hapoalim Trust Services is also charged in the indictment.
"Those involved allegedly attempted to conceal Gaydamak's identity due to fears that representatives of the shareholders would not agree to sell him the company or negotiate with him," the Justice Ministry said in a statement. The ministry said this is how Gaydamak and Galmor used a firm wholly owned by Bank Hapoalim to commit fraud and money laundering.
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Thursday's announcement noted that the alleged crimes were committed under aggravated circumstances, as those involved were international businessmen and a banking corporation.
Gaydamak's office responded to the charges: "For a long time Gaydamak has seen himself as the object of political persecution. The irresponsible decisions of irresponsible people are not worth responding to."
Bank Hapoalim responded: "We cannot respond to such reports. In any case, Bank Hapoalim and its subsidiaries have always acted and are acting strictly to keep the law."
The prosecution alleges that each party involved, for whatever reason, acted together to carry out a fraudulent deal. The claim is that the money was transferred from Gaydamak's account, managed by Poalim Trust Services via a Bank Hapoalim branch on Tel Aviv's Hayarkon Street, to another firm's account, also managed by Poalim Trust Services. The money was then returned to Gaydamak's account.
Originally the suspects had been thought to have only committed a more minor technical violation of money-laundering laws by not reporting the transfer of the money.
The investigation started in 2005, and Gaydamak and others have strongly criticized the length of time involved. In September 2006, Gaydamak and others were given a hearing on the money-laundering matter, and since then he has been called for questioning time after time to "complete the investigation." The current decision to file an indictment was made after last week's questioning of Gaydamak by the police's National Serious and
International Crimes Unit.