WikiLeaks: Russian mob laundered $10b with Israeli assets

"Organized crime in Israel now has global reach, with direct impact inside the US.

WikiLeaks has leaked a cable, dated 15 May 2009, from the US Embassy in Tel Aviv to the State Department and other US authorities, including the FBI, US Customers and Border Control, and the Department of Homeland Security, which states that the Israel Police and courts are incapable of dealing with organized crime. The cable says that the Embassy tries, not always successfully, to prevent the entry of Israeli organized crime figures into the US.

The cable, entitled "Israel, a Promised Land for Organized Crime?", then-US Ambassador James Cunningham wrote, "Organized crime (OC) has longstanding roots in Israel, but in recent years there has been a sharp increase in the reach and impact of OC networks. In seeking a competitive advantage in such lucrative trades as narcotics and prostitution, Israeli crime groups have demonstrated their ability and willingness to engage in violent attacks on each other with little regard for innocent bystanders.

"The Israeli National Police and the courts have engaged in a vigorous campaign against organized crime leaders, including the creation of a new specialized anti-OC unit, but they remain unable to cope with the full scope of the problem. Organized crime in Israel now has global reach, with direct impact inside the United States."

The cable's author demonstrates extensive knowledge of Israeli organized crime, possibly with the assistance of the FBI office at the US Embassy in Tel Aviv. The cable discusses whether organized crime has infiltrated Israel's political life.

"It is not entirely clear to what extent OC elements have penetrated the Israeli establishment and corrupted public officials. The Israel Police insists that such instances are rare, despite the occasional revelation of crooked police officers in the press. Nevertheless, there have been several dramatic revelations in recent years that indicate a growing problem. In 2004, former government minister Gonen Segev was arrested for trying to smuggle thousands of ecstasy pills into Israel, a case that produced considerable circumstantial evidence of his involvement in OC. The election of Inbal Gavrieli to the Knesset in 2003 as a member of Likud raised concerns about OC influence in the party's Central Committee. Gavrieli is the daughter of a suspected crime boss, and she attempted to use her parliamentary immunity to block investigations into her father's business. (Gavrieli is no longer a member of the Knesset.)"

The cable extensively cites an anonymous source, called "xxxx". It is not clear who censored the name, but WikiLeaks says that it edits the material.

The cable notes "Israel's multi-ethnic population provides a deep well of opportunity for Israeli OC to expand into new territory." Most Israeli crime families trace their roots to their countries of origin, and this is also true of the Russian oligarchs and Jewish organized crime members. "Little is known about the full extent of Russian criminal activity in Israel, but sources in the police estimate that Russian OC has laundered as much as US $10 billion through Israeli holdings."

The cable adds, "The profit motive serves as a great unifier among Israel's diverse demographic groups. According to xxxxx, some Amsterdam-based Hasidic groups allegedly are implicated in international drug smuggling through links to Israeli OC. Arab and Jewish Israeli criminals routinely cooperate and form alliances to expand control of lucrative drug, car theft and extortion rackets. Even hostile and closed borders pose few obstacles to OC groups."

Published by Globes [online], Israel business news - www.globes-online.com - on December 2, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

groundcover founders credit: Yossi Yarom Israeli observability co groundcover raises $35m

groundcover has developed a “Bring Your Own Cloud” (BYOC) observability solution, redefining the architecture of a modern observability platform.

Tel Aviv Stock Exchange credit: Shutterstock MagioreStock Foreign investment in TASE hits five-year high

Foreign investors have been flocking to the Tel Aviv Stock Exchange in recent weeks, the TASE research department tells "Globes."

Elbit Systems tank turret systems credit: Elbit Systems Elbit Systems wins $100m tank turret systems deal

The Israel defense electronics company will supply its advanced UT30 MK2 unmanned turret systems to General Dynamics European Land Systems (GDELS) to be supplied to a NATO European country.

Tomer Weingarten Photo: PR Trump targets SentinelOne exec in act of revenge

The US administration has suspended the security clearance of the company's chef intelligence and public policy officer Chris Krebs and everyone associated with him.

Tel Aviv Stock Exchange share prices rising credit: Tali Bogdanovsky TASE opens sharply higher after Trump U-turn on tariffs

The pause is being interpreted as a climb down after US President Donald Trump admitted he had made the move to calm the markets.

Ashot Ashkelon credit: Ministry of Defense Up 250%, Ashot Ashkelon wins another Defense Ministry order

The Israeli defense company's share price has risen 250% in the past three years since FIMI Opportunity Funds acquired control.

Liad Agmon credit: Eyal Izhar Insight Partners Liad Agmon steps down as managing partner

Serial entrepreneur Agmon has served as a partner at Insight Partners Israel alongside Daniel Aronovitz who set up the Israel office.

Shekels credit: Shutterstock Vladerina32 Shekel slide resumes amid escalating tariff war

The Bank of Israel is not expected to intervene in the forex market despite the sharp depreciation of the shekel.

Nir Zuk credit: Inbal Marmari Palo Alto Networks mulls buying AI security co for $700m

Sources inform "Globes" that on Palo Alto's radar is Protect AI.

President Donald Trump hosts Prime Minister Benjamin Netanyahu credit: Reuters Kevin Mohatt Israeli officials confident on US tariff concessions

Senior Israeli figures believe that concessions could be tied to progress on strategic regional political issues that are important to President Trump.

Phoenix Investment House CEO Avner Hadad  credit: Tommy Harpaz "The market has priced in all the bad things"

Phoenix Investment House CEO Avner Hadad says US markets could continue to fall, but that we are close to interesting territory for patient investors.

Tel Aviv credit: Shutterstock Tel Aviv slips in World's Wealthiest Cities ranking

Tel Aviv's position as one of the world's wealthiest cities took a big knock over the past year as it slipped from 42nd to 48th in investment advisors Henley & Co.'s "World's Wealthiest Cities" Top 50 ranking.

Leviathan platform  credit: Albatross C'ttee seen recommending no cut in gas exports

The Dayan committee on the future of the gas sector estimates that Israel's natural gas reserves will run out in 2045.

Accountant General Yali Rothenberg credit: Rafi Kutz Israel's fiscal deficit continues to narrow

The deficit narrowed in the twelve months to the end of March 2025, for the sixth consecutive month, Ministry of Finance accountant general Yali Rothenberg reported today.

Arkia credit: Arkia Arkia cuts Tel Aviv - New York April fares

Arkia has cut fares at the last minute, a time when prices usually soar even higher, according to the pricing method used in the industry.

Bank of Israel Governor Prof. Amir Yaron credit: Dani Shem Tov Knesset Spokesperson BoI Governor: US tariffs could push up inflation in Israel

Prof. Amir Yaron tells "Globes" that there is a risk that the new tariffs will cause inflation to rise in the US, with a knock-on effect for Israel.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018