Shlomo Eliahu, Eliahu Insurance Company Ltd. founder and chairman Shlomo Eliahu, the largest private shareholder in Bank Leumi (TASE:LUMI) with a 9.6% stake, is suspected of not reporting to customs private checks worth hundreds of thousands of dollars. This is a technical offence and police sources told "Globes" that the investigation "is not dramatic."
However, sources in the State Prosecutor's Office say that the police have not yet fully investigated all avenues that they were instructed to examine. Consequently, the State Prosecutor is deliberating on whether to pursue the criminal or administrative options.
Clearly if the criminal option is chosen this will have far reaching implications for the capital market, insurance and banking sectors.
Eliahu's spokesman Rani Rahav said, "Eliahu is not suspected of money laundering. Eliahu was not aware of the obligation to report and only thought it related to taking large amounts of cash out of Israel and not checks. On the offence for which Eliahu is being investigated there is usually a fine and charges are not filed."
Published by Globes, Israel business news - www.globes-online.com - on November 28, 2010
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