Shaul Mofaz sued for alleged Jamaican fraud

Shaul Mofaz  / Photo: Eyal Izhar, Globes

Two former military subordinates allege that the ex-IDF chief of staff made false presentations to induce them to carry out surveys without payment.

A NIS 2.5 million lawsuit was filed this week at the Tel Aviv Magistrates Court against former IDF Chief of Staff and Defense Minister Maj. Gen. (res.) Shaul Mofaz and his brother, Col. (res.) Shlomo Mofaz. The lawsuit alleges fraud amounting to millions of shekels in Jamaica at the expense of the respondents.

The claimants, former subordinates of Shauf Mofaz, are Shmuel Sasson, a former department head in the Israel Security Agency, and Col. (res.) Ron Ben Moshe, currently working as security consultants.

Mofaz allegedly told the claimants that if they would help him conduct surveys and plans in their fields of expertise and if the price bids that the Jamaican government has requested from him were accepted, he would include them in the project. He also allegedly told them that they would earn huge amounts that would justify the enormous investment required from them. According to the statement of claim, however, the Mofaz brothers falsely told the claimants that the chances that the price bids would be accepted were very high, and it was therefore worthwhile for the claimants to work for nothing, and that Shaul and Shlomo Mofaz were also working without pay, so that they were "all in the same boat."

"It was later learned, however, that after it was unfortunately announced that the joint venture had not won the project, that the Jamaican government had never promised or made any presentation whatsoever to Shaul Mofaz that he would carry out the project; it had merely commissioned from him surveys and workplans that would be used to conduct some tender in the future," the statement of claim alleges.

"Even worse, it was later learned that Shaul Mofaz and his brother had brazenly lied to the claimants, not only about the substance of the work and the chances of obtaining the project. It was learned afterwards that the results of the work that the claimants had done free of charge had been sold to the Jamaican government, for which Shaul Mofaz received millions of shekels, which he concealed from the claimants," the claimants assert.

It is also alleged that after the claimants discovered the fraud, they contacted the former IDF chief of staff and demanded their share of the profits. Mofaz refused, however, and agreed only to waive the non-competition condition that the claimants had undertaken, and even that only if they would agree to pay him a commission for any future activity whatsoever.

In a response to a letter of warning, the lawyers of the Mofaz family stated that they completely reject the allegations. "Your clients accepted the offer of their own free will, according to their commercial considerations. Your clients were well aware that there was considerable risk that the consultation work would not result in any follow-on project whatsoever, and they explicitly waived any claim or demand if this risk materialized."

The lawyers representing the Mofaz brothers said that the claimants were trying to extract money through extortion by frightening Shaul Mofaz and threatening his good name.

The Naschitz, Brandes, Amir & Co. law firm is representing the claimants. The Meitar, Liquornik, Geva, Leshem, Tal & Co. law firm is representing the Mofaz family.

Published by Globes, Israel business news - en.globes.co.il - on January 7, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Shaul Mofaz  / Photo: Eyal Izhar, Globes
Shaul Mofaz / Photo: Eyal Izhar, Globes
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