The Tel Aviv Police fraud squad is investigating suspected fraud offenses and violations of the Private Investigators and Security Services Law allegedly committed by the Israeli Black Cube private intelligence agency and its managers in the company's investigation to trace assets allegedly smuggled by bankrupt businessman Eliezer Fishman.
A petition filed by the police as part of the Fishman bankruptcy case shows that a confidential statement by Black Cube cofounder Avi Yanus to the court raises a suspicion that Black Cube conducted what was for all intents and purposes an intelligence investigation on Israeli territory, not just an investigation based on open sources, in contravention of the company's license under the Private Investigators Law.
In the police investigation, Adv. Joseph Benkel, the trustee for Fishman's assets, was called in to make a statement. Benkel told the Tel Aviv fraud squad that he had hired Black Cube in the investigation that he had conducted to trace Fishman's assets. Benkel suspected that Fishman "or others representing him and on his behalf are concealing assets" for which Benkel was responsible in his position as trustee for Fishman's assets. Benkel's statement also indicates that he decided to hire Black Cube after consulting Adv. Sigal Yakobi, the official receiver.
Benkel said that after hiring Black Cube, he met with Black Cube CEO Dan Zorella; former Israel National Security Council head Maj. Gen. (res.) Giora Eiland, a senior advisor of Black Cube; Yanus; and Black Cube's legal adviser, who lives in London.
Asked whether he had made sure that Black Cube was licensed as a private investigator, and that its employees were licensed private investigators, Benkel replied, "No, I assumed that the persons actually conducting the investigations were licensed, and I met mainly with the managers and operatives of the people who conducted the investigation."
Benkel added that he had not personally met with the people who actually carried out the investigation, and that he had no reason to think that Black Cube was breaking the law. He made it clear that he would not have concluded an agreement with Black Cube had he known that they were conducting investigations in Israel without an appropriate license.
Following Benkel's statement to the police, the police petitioned Tel Aviv District Court President Judge Eitan Orenstein for permission to view the Fishman bankruptcy case file. Among other things, the police asked for a copy of the agreement between Benkel and Black Cube, which is being kept in the court's safe as a confidential document, and other confidential investigation material given to the court by the trustee as part of his comprehensive investigations of Fishman.
According to the police's petition, the requested documents are necessary in order to "strengthen the evidence against Black Cube, which is suspected of committed offenses through its managers."
Black Cube: A recycled complaint
Black Cube said in response, "This complaint has already been recycled dozens of times in recent years, and 'coincidentally' reappears following every media report involving Black Cube. Its purpose is solely to obtain publicity for the Israel Bureau of Private Investigators, which is apparently afflicted with total boredom, and is dragging the police and the trustee into getting involved with its complaints and into wasting precious resources.
"Black Cube operates legally in every country in which it operates, and takes special care to work legally in Israel with the help of extremely experienced senior legal advisers. Every time this recycled complaint was filed in the past, the company showed all of the agencies involved that its work was irreproachable.
"Black Cube was selected to represent the state in the Fishman case out of six potential companies examined in Israel and abroad, after the legality of its actions and special capabilities was examined. The fact is that the company found tens of millions of euros in assets for the benefit of the public."
Presumption of innocence: the criminal proceedings in this investigation are still only beginning. The suspects involved in the affair are entitled to the presumption of innocence.
Full disclosure: businessman Eliezer Fishman is the previous controlling owner of “Monitin,” which owns a 100% share of "Globes." Fishman and Alona Bar On, one of the current controlling owners, are embroiled in a protracted legal, personal and business dispute.
Published by Globes, Israel business news - en.globes.co.il - on August 27, 2019
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