Former Prime Minister Ehud Olmert was acquitted on Thursday morning 10/7/12 of the charges against him in two cases, and convicted of breach of trust, in a third.
Jerusalem District Court president, Moussia Arad, headed the panel of judges that found Olmert not guilty of the charges in the Rishon Tours and Talansky affairs, and convicted him on one count – breach of trust, in the Investment Center affair. Shula Zaken, Olmert's longtime office manager and co-defendant, was convicted in the Rishon Tours affair, and acquitted on other charges, including listening in on Olmert's conversations without permission.In the Rishon Tours affair, Olmert was acquitted due to reasonable doubt. "The defendant's claim that he wasn't aware of it, has its problems," wrote Arad, "but there wasn't enough evidence presented to prove that his version of events isn't reasonable… there were no clear directives or procedures." "We arrived at the conclusion that the evidence does not prove beyond reasonable doubt that the defendants chose a course of action that would gain the defendant profits," Arad said, "no document was found in which the defendant directed Risby-Raz to collect the extra money. Indeed, there are documents that could point to the defendant's awareness of surpluses."The judges also accepted the argument that Olmert was very busy and could have believed that the flights were funded by frequent flier points. "The [defendant's] public behavior does not coincide with a system of fraud intended to create cash surpluses… such an intention was not proved," wrote the court, which also determined that "there was no joint fraud system by the defendant and Rishon Tours. There were no special relations with the Rishon Tours owners, and no proof of a system to produce profits."
Earlier, in the introduction to the verdict president Arad said that the "trial was long and complex. One hundred and fifty-seven hearings, 19,000 pages of protocol, 966 exhibits. The sides' summaries include 4,000 pages. Two events caused delays – the attorney's strike and the police investigation of a further affair (Holyland)." Judge Arad praised both sides' handling of the case.In the Rishon Tours affair Olmert allegedly pocketed $92,164 by claiming double and triple reimbursement from public organizations and from the state for trips between 2002-2006.
In the Talansky affair, Olmert is charged with illegally receiving hundreds of thousands of dollars illegally.The Investment Center affairs concerns allegations that Olmert, during his term as industry, trade and labor minister, granted personal favors to Uri Messer, his old law partner.Olmert is also one of sixteen suspects charged with wrongdoing in the Holyland corruption trial, which involves developers who allegedly paid bribes to senior Jerusalem municipal officials in exchange for expedited approval of expanded construction plans for the Holyland project.

Robert Nardoza, a spokesman for the U.S. Attorney's office in New York, reply to 4law.co.il  request of Ehud Tenenbaum verdict: "Under seal….no info available."

Aug. 30, 2009 - Dan Izenberg , THE JERUSALEM POST 

Attorney-General Menahem Mazuz filed an indictment against former prime minister Ehud Olmert on Sunday, marking the first time in the state's history that criminal charges have been brought against anyone who has held that office. Olmert's close aide for several decades, Shula Zaken, was also cited in the indictment, which covers four separate investigations - the so-called Rishon Tours affair; Olmert's relations with his close friend, attorney Uri Messer, and US financial backer Moshe Talansky; his alleged deceptions of the State Comptroller's Office; and Zaken's alleged wiretapping of Olmert's conversations. The indictment was filed in Jerusalem District Court after Olmert's battery of lawyers, headed by Eli Zohar, waived their right to a hearing before Mazuz. Olmert's spokesman, Amir Dan, issued a statement after the indictment was filed declaring that "after they forced a prime minister to step down in the middle of his term, it is obvious that the attorney-general and the state attorney do not have, and never had, any choice but to file an indictment against Olmert. The court, on the other hand, is free of extraneous considerations. Olmert is convinced that in court, he can and will prove his innocence once and for all. "It is important to remember that the Cremieux Street and Bank Leumi affairs started off with big headlines that lasted for years, and ended up in nothing. That is what will happen to these affairs as well." The indictment is 60 pages long and includes a 10-page index detailing 17 trips Olmert took between the years 2002 and 2005 in which he charged the state and donors more than the flight tickets cost. The indictment states that Olmert also double-billed for hotel and transfer costs, but these are not included in the charges. It also lists 280 witnesses for the prosecution and was signed by State Attorney Moshe Lador, Jerusalem District Attorney Eli Abarbanel and prosecutor Uri Korev. In the Rishon Tours affair, Olmert is charged with obtaining something by deceit under aggravated circumstances, false entry into the documents of a corporate body, fraud and breach of faith, and concealing income by deceit. Zaken is charged with obtaining something by deceit under aggravated circumstances, false entry into the documents of a corporate body, and fraud and breach of faith. According to the charge sheet, Olmert and Zaken "exploited Olmert's status and the high public offices he held to conduct systematic and prolonged activity to obtain financial benefits for Olmert in various ways and from various sources, including by deceiving organizations, public institutions, the state and government officials." In addition to defrauding the state, Olmert, Zaken and another Olmert aide, Rachel Raz-Risbi, allegedly cheated philanthropic and public organizations, including Akim - The Association for the Rehabilitation of the Mentally Handicapped, Israel Bonds, Yad Vashem, the Wiesenthal Center, the March of Life, the World Jewish Congress and others. Raz-Risbi has been charged separately in the Rishon Tours affair. The indictment contains a chart listing 17 trips that Olmert allegedly made on behalf of more than one organization, sometimes with his wife and other times with security guards, in which Raz-Risbi, at his orders, supposedly charged the organizations more than what the trip actually cost. Altogether, Olmert over-charged the state and these organizations by $92,000, according to the charge sheet. The money was allegedly kept in a secret account by the Rishon Tours tourist agency and members of Olmert's family used it for their private trips. The family trips added up to $100,000. Instead of Olmert making up the difference from his own pocket, Rishon Tours allegedly siphoned off the money from other clients without their knowledge. In some cases, Olmert made up a false travel itinerary to charge more money, according to the prosecution. Olmert also deceived the Finance Ministry by using Rishon Tours, even though it was not on the list of authorized travel agencies that could be used by government officials. He allegedly arranged with two travel agencies that were on the list to serve as "front men," while the actual purchases were carried out, illegally, by Rishon Tours. Regarding the Talansky and Messer affairs, Olmert is charged with fraud and breach of faith and receiving something by deceit in aggravated circumstances. Zaken is charged with one count of fraud and breach of faith for her role in these affairs and in the Rishon Tours case. According to the indictment, Olmert received $600,000 from Talansky between 1997 and 2005 and did not report this income. The sum included a transfer of NIS 104,500 from Talansky to Olmert's private bank account in June 1997, $300,000 to cover Olmert's debts from his election campaign for mayor of Jerusalem in 1998, gifts of $110,000 and €25,000 in 1999 and $30,000 in campaign donations. In addition, the state charged that Talansky gave Olmert $100,000 in cash delivered by Talansky in envelopes to Olmert or Zaken in Israel or to Olmert in the US. In return, Olmert allegedly intervened on Talansky's behalf to arrange appointments for him with businessmen, including with Sheldon Adelson and Yitzhak Teshuva. According to the indictment, Uri Messer kept a secret cash fund for Olmert which amounted to hundreds of thousands of dollars. Some of the money came from Talansky. Others, unknown to the state, also gave Olmert money. Zaken transferred the funds to Messer and kept tabs on the deposits. From time to time, Olmert would ask for some of the money. At one point, the fund amounted to $350,000. At first it was kept in a safe in Messer's office. Later it was transferred to a bank. For this and other reasons, Olmert and Messer were involved in a relationship in which Olmert was indebted to Messer for his help. Thus, the indictment maintained, Olmert should have kept a distance from Messer in his capacity as a minister. But, according to the charge sheet, he did not do so. While serving as industry and commerce minister, Olmert had overall responsibility for the Investment Center, established to encourage investments in Israel. In that capacity, he actively intervened in the requests of businessmen represented by Messer for government grants. Two of the cases in which he granted the requests of Messer's clients, against the opinion of the professionals in the ministry, involved Silicat Dimona Inc. and Shemen Industries Ltd. Olmert has also been charged with receiving something by deceit in aggravated circumstances, for providing false information and concealing facts from the State Comptroller's Office, while Zaken was charged with illegal wiretapping and fraud and breach of faith for allegedly eavesdropping on Olmert's phone conversations.(JerusalemPost)

Robert Nardoza, a spokesman for the U.S. Attorney's office in New York, told 4law.co.il:Ehud Tenenbaum Pled guilty last week to count 2 of the indictment.He faces a statutory maximum of 15 years in prison when he is sentenced on Nov. 19th before Judge Sifton.

Feb. 15, 2009

Yaakov Lappin , THE JERUSALEM POST

Police have amassed sufficient evidence to link Israel Beiteinu chairman Avigdor Lieberman with money laundering charges, a former National Fraud Unit investigator told The Jerusalem Post Thursday, citing a senior police source.Police suspect Lieberman used Cypriot bank accounts registered to his daughter's name for money laundering purposes, and possibly to also carry out fraud and bribery offenses."The police source said there was no doubt about money laundering," Dep.-Cmdr. (ret.) Boaz Guttman said. "But he refused to talk about bribery."Guttman, who served in the National Fraud Unit for 21 years, said a future indictment would be a long way off, since prosecutors needed to overcome a series of complex hurdles before the case could reach trial.These include a legal hearing before an indictment, in which Lieberman could try to torpedo the proceedings or play for time, and an attempt by prosecutors to get a Knesset committee to vote in favor of stripping Lieberman of his parliamentary immunity."The hearing will be drawn out - Lieberman could complete half a term in government by the time it's over," Guttman said.And there are no assurances that the Knesset committee would agree to remove Lieberman's immunity, especially if such a move would threaten a future coalition's stability, Guttman noted."Knesset members could try to save a government from collapsing by upholding Lieberman's parliamentary immunity. If prosecutors decide to indict, they must receive approval from a Knesset committee to proceed," Guttman explained. "This indictment won't happen tomorrow."There could be little doubt that Lieberman discussed the police investigation against him with Kadima chairwoman Tzipi Livni and Likud leader Binyamin Netanyahu during his recent meetings with them, while looking out for hints that his parliamentary immunity could be assured, Guttman stated.Lieberman's attorney, Yaron Koteli, said in response, "We have nothing to say, since we don't even have the case material. What I can say is that Avigdor Lieberman has not been summoned by police to an interrogation. When he is invited, he will arrive."Koteli said the case had "a long way to go" before it reached prosecutors, adding that police "could change their minds" along the way.Koteli is awaiting the state's reply to a High Court petition he filed on behalf of Lieberman in July 2008, in which he demanded that police either close the case against Lieberman for good, or complete it and hand it off to prosecutors for trial.On January 22, the state informed the High Court in response that "due to the scope of materials, we can't know at this stage when the investigation will end."Lieberman's excellent memory and fearless encounters with previous police interrogators pose an additional challenge to the authorities, Guttman said, speaking from experience. Guttman interrogated Lieberman in 1997 over suspicions that Lieberman had forged protocols of government meetings, before concluding that there was no evidence of any wrongdoing."Lieberman does not hide behind his right to remain silent. He won't confess, either. He will give full answers and send police abroad looking for evidence," Guttman said. "He does not stutter, and he is not like Olmert, saying he doesn't remember this or that. He has all the facts in his head, and he does not refer to documents when answering questions."Guttman said the image of Lieberman portrayed in the press was very different from the man he had encountered in person. After being warned by Bennie Begin, who was a witness in the 1997 investigation, that Lieberman was a formidable opponent during interrogation sessions, Guttman prepared for the meeting "like a first-year student in university."Now, Lieberman is "getting ready" for his next encounter with the National Fraud Unit, Guttman said, adding, "The man is, in my opinion, the fastest-thinking suspect politician the police have had to face. He will come prepared. This is a fight for his life."Another challenge facing the National Fraud Unit could lie in Cyprus, where detectives will fly to collect evidence and interview witnesses. The Cypriot legal system and the attempt to coordinate inquiries with the Cypriot authorities could prove cumbersome, Guttman warned, even though the National Fraud Unit conducts an average of 80 overseas investigations a year.If the obstacles to indicting Lieberman prove to be insurmountable, prosecutors have a worst-case option of indicting Lieberman's daughter, Michal, and his former attorney, Yoav Mani, who is suspected of trying to invoke lawyer-client confidentiality to prevent police from accessing case materials.In such a situation, details of the case and Lieberman's alleged role in the offenses would reach the media, and the resulting political damage to Lieberman could be significant, Guttman said."This is the prosecution's last card," he added.As far as Lieberman is concerned, if he does succeed in joining the government, he would be limited in the number of posts available to him, thanks to a precedent set by Attorney-General Menahem Mazuz when he placed restrictions on the ministerial jobs available to Kadima MK Tzahi Hanegbi - also the target of a police investigation.A conflict of interests would prevent Lieberman from taking up the post of public security minister, due to that job's direct oversight of the police. The same would apply to the post of justice minister. The Finance Ministry would also be off-limits to Lieberman, since police need approval from the finance minister to access bank accounts and other information belonging to Knesset members who are under investigation. (Jerusalempost 15/2/09)