The Jerusalem District Court today convicted Shas Chairman MK Arieh Deri on charges of accepting bribes, fraud and breach of trust. Deri was convicted on five of the seven offences imputed to him. Moshe Weinberg, Aryeh Weinberg and Yom-Tov Rubin were likewise convicted on most of the counts against them.
The judgement consists of 917 pages. Dr. Yaakov Tzemach, leading the panel, this morning read the essential elements of the decision. Sitting in judgement together with Tzemach were Justices Miriam Naor and Mussia Arad.
The first count alleged that in the period 1985-1990, Deri, in discharge of his various public offices, as Assistant Minister of the Interior, candidate for the director-generalship of the Ministry of the Interior, director-general of the Ministry of the Interior and Minister of the Interior, acted, directly and indirectly, using his influence as a civil servant, to procure benefits, including moneys, from various governmental sources, for Weinberg and Rubin and entities under their control.
In return for so doing, Deri and his wife Yaffa received $165,000, inter alia, as part of the financing for the purchase of the couple’s apartment in the Har-Nof neighbourhood of Jerusalem. The sum of $11,000 was spent on accommodating the Deris in London, in the apartment of Martin Brown. Flight tickets for Yaffa Deri and one of her children to New York were also financed in this manner. Some of the money was remitted through Deri’s brother, Adv. Shlomo Deri.
On this count, Deri was convicted of accepting a bribe and the other defendants, of giving a bribe.
The second count alleges that the defendants conspired to obtain moneys by fraud, from government sources, for the Meshaknei Har Shmuel (Mt. Samuel Colonists) amuta (non-profit society), and to remit them to the "Lev Banim" amuta, by means of misrepresentation, falsification, and the use of Deri’s power and influence as a public servant.
Deri, at the time director-general of the Ministry of the Interior, initiated the remittance of NIS 200,000 from the Ministry of the Interior, through the Jerusalem Municipality, to the Prisoners Rehabilitation Centre amuta, even though he was not empowered so to order. The amuta’s books were falsified in order to camouflage the funds.
Deri also arranged for the transfer of NIS 625,000 from the Ministry of Religious Affairs to the Prisoners Rehabilitation Centre amuta, for remittance to the "Lev Banim" amuta. To this end, a fictitious contract was made for the sale of the "Lev Banim" building. On the basis of the quoted price, which was far higher than the value of the building, financial support was obtained from government sources. Weinberg and Rubin, with Deri’s connivance, fraudulently obtained funds from the Ministry of Religious Affairs, conspiring, by their acts, to falsify instruments.
On this count, Deri wasconvicted of fraud and breach of trust and acquitted of falsifying corporate instruments. The other defendants were convicted of obtaining by fraud and falsifying corporate instruments.
The third count alleged that Deri was one of the purchasers of lots in the Nebi Samwel site from the Moreshet Binyamin company, the deal being brokered by Moshe Weinberg. When it transpired that the land could not be rezoned, Deri took steps to set up a commission which recommended making available to the lot owners alternative lots in the site of Arim company. He also took steps to transfer site development contracts from Arim to the Mt. Samuel Colonists amuta. In return for Deri’s endeavours, Moreshet Binyamin remitted a $200,000 bribe to the Mt. Samuel Colonists amuta, pursuant to an agreement between Deri, Moshe Weinberg and Rubin.
On this count, Deri was convicted of fraud and breach of trust, and acquitted of accepting a bribe. Moshe Weinberg was acquitted of accepting a bribe, while Rubin was convicted of accepting a bribe.
The fourth count alleges that Moshe Wienberg and Rubin accepted from Moreshet Binyamin a sum of NIS 310,000 for the Mt. Samuel Colonists amuta, and, of that amount, deposited only NIS 195,000 in the amuta’s bank account.
The two men were acquitted of charges of theft by a manager and falsifying corporate instruments.
The fifth count alleged that Moshe Weinberg and Rubin withdrew money from the bank account of the Mt. Samuel Colonists amuta, as if these moneys constituted repayment of debts ostensibly owed to them by the amuta.
Moshe Weinberg was acquitted of theft by a manager and falsifying corporate instruments. Rubin was acquitted of theft by a manager and convicted of falsifying corporate instruments.
The sixth count alleged that Moshe and Aryeh Weinberg and Rubin caused the names of Moshe Weinberg and Rubin to be included in the list submitted to the State commission that recommended enabling the purchasers of lots from Moreshet Binyamin to receive alternative lots - as ostensibly being entitled to alternative lots. This was done with intent to defraud, since they had no such right on the basis of the commission’s recommendation.
Moshe Weinberg was convicted of obtaining by fraud and of perjury. Aryeh Weinberg was acquitted of obtaining by fraud and convicted of perjury. Rubin was convicted of obtaining by fraud and of perjury.
The seventh count alleged that, in accordance with directives issued by Rubin and Aryeh Weinberg, the acceptance and repayment of loans was generally not documented in the instruments of the "Lev Banim" amuta. In this way, Rubin remained the amuta’s sold creditor. The two men conspired for the moneys received as revenues, to be recorded as though they were loans repayable by the amuta, so that the balance of the debt owed to Rubin would increase, enabling them to withdraw various sums of money. In this way, about half the amuta’s revenues in the years 1986-1988 were falsified.
Rubin and Aryeh Weinberg were acquitted of falsifying corporate instruments.
The eighth count alleged that Aryeh Weinberg deposited a cheque for NIS 100,000 from Moreshet Binyamin, meant for the "Lev Banim" amuta, into his personal account, and withdrew the money in cash.
Weinberg was acquitted of theft by a manager.
In the ninth count, the State alleged that Deri, while Minister of the Interior, took steps to have Moshe Weinberg appointed chairman of the Lehavim council, while knowing that Weinberg had neither training nor qualifications for the job, and knowing that the appointment was liable to be prejudicial to the activity of the public administration. The purpose of his so doing was to provide Weinberg with a source of livelihood, by reason of the social and business relations between him and Wienberg, and in consideration of bribery Deri had accepted over the years from Weinberg and Rubin. Weinberg received a salary from the Lehavim Council, which helped him extricate himself from his economic difficulties, and he received, for his use, a luxury automobile purchased by the council. On this count, Deri was convicted of fraud and breach of trust.
Published by Israel's Business Arena March 17, 1999