The Tel Aviv Magistrate’s Court has issued a precedent-setting decision, convicting the founder of a financial services firm of a money laundering crime for what had previously been considered only disciplinary misconduct, the courts announced Saturday night.
The executive, Benzion Luze, was also sentenced to criminal sanctions, including a suspended sentence of six months in prison, a NIS 50,000 fine and the transfer of NIS 200,000 to the forfeiture authority.
The conviction came following a plea bargain by Luze.
The charges that Luze was convicted of included violating a lawful order under the Criminal Penalties Law, the Money Laundering Law and a money laundering regulation requiring oversight, reporting and verification of client information regarding currency exchange services….
The conviction was based on Luze’s conduct in running the company Amit Liam Trade and Holdings from January 2008 to March 2010.
During that time, Amit Liam would receive problematic checks from clients and in return would give the clients funds or Amit Liam checks matching the check amounts.
The clients generally came to Amit Liam as they needed funds immediately to pay off debts and would also pay a fee to Amit Liam for its service.
Luze’s unlawful activities involved at least 466 transactions and NIS 17 million in which he, among other things, failed to verify the identities of his clients according to the relevant heightened standard for these which receive extra scrutiny.
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