Gad Zeevi and three other leading businessmen were held for questioning yesterday on suspicion of fraud in the acquisition of 20% of Bezeq. The police allege the four obtained the shares under false pretences. The Israel Police Force National Serious and International Crimes Unit conducted the investigation, now being reported exclusively in “Globes”, in recent months in complete secrecy.
In addition to Zeevi, police investigators yesterday arrested businessman Mikhail Chernoy, Adv. Peter Gad Naschitz from the Naschitz, Brandes, and Co. law firm, and businessman Zeev Rom.
The police spokeswoman last night said, “Israel Police Force National Serious and International Crimes Unit today held a number of suspects for questioning in the Unit’s investigation. The suspects are linked among other things to irregularities in the purchase of Bezeq shares.”
As far as known, the investigation into Zeevi’s business dealings with business and political concerns in Israel and overseas is focusing on Zeevi’s sources of financing for acquiring his Bezeq shares. Zeevi purchased 20% of Bezeq for $600 million. Police suspect that the Chernoy family of Russia was one of the main backers for the deal. The Chernoy family includes Mikhail Chernoy, who resides in Savyon and recently sold control of Bulgarian cellular company MobilTel.
The rest of the Chernoy family lives in Russia. The police suspect that Zeevi and the other suspects in the share transaction violated the law by not properly reporting their sources of financing, which included the Chernoy family. The police are therefore alleging fraud through failure to report and improperly obtaining expected profits from illegally acquired shares.
Police officers expressed fear that undesirable elements with suspected links to Russian Mafia elements would succeed in taking over a considerable part of Bezeq. The investigation, which is being conducted simultaneously in Israel and overseas, yesterday became public knowledge with the arrest of the chief suspects. Investigators also searched for documents linked to the affair in the suspects’ homes and offices.
Adv. Peter Gad Naschitz was released yesterday, and the police believe that the other suspects will be released on bail.
Published by Israel's Business Arena on March 26, 2001