Ambassador to London probed
Zvi Hefetz investigated by national fraud squad on suspicion of involvement in Bank Hapoalim money laundering scandal revealed several months ago
The national fraud squad has investigated under warning Israel's ambassador to Britain Zvi Hefetz for suspicion of involvement in the Bank Hapoalim money laundering scandal, it was revealed Monday.
Hefetz was questioned for several hours and is expected to be investigated further.
Police also suspect Hefetz operated on behalf of tycoon Vladimir Gusinsky during the period under investigation, when Hefetz served as Gusinsky's business manager.
Police investigators raided Gusinsky's offices several months ago and recovered various documents. Senior police officials estimate Gusinsky, who had a bank account at the branch in question, will be summoned for questioning.
At the time, Gusinsky's representative Arnon Perlman denied his boss's connection to the scandal.
"His business activities in Israel and around the world are managed according to Israeli and international law and are completely transparent," he said, adding that "Mr. Gusinsky will fully cooperate with the police if requested to do so."
Some 45 businessmen are also expected to be apprehended and questioned, many of whom are well-known in the Israeli business arena.
Largest Israeli money laundering case
Police revealed one of the largest cases of money laundering in Israeli history at Bank Hapoalim's Hayarkon branch in Tel Aviv.
Initial reports revealed that the Tel Aviv Hayarkon branch of Israel's largest bank was allegedly involved in the laundering of hundreds of billions of dollars.
Police froze 180 bank accounts belonging to 18 clients and totaling USD 376 million.
The investigation was launched a year ago following a routine check by the Bank Comptroller, who is in charge of investigating illegal monetary transfers and laundering.
According to police, evidence shows that millions of dollars were transferred to the Hayarkon branch from various countries, where it was laundered and transferred back overseas.
The money was allegedly obtained through criminal activity.
