US DOJ TAX PROBE LEADS TO ISRAELI BANKS

September 17, 2011

Reuters

The U.S. pursuit of offshore tax evaders is widening to include Israel, where U.S. authorities are scrutinizing three of Israel’s largest banks over suspicions their Swiss outposts helped American clients evade taxes, people briefed on the matter said.

The banks under scrutiny by the U.S. Justice Department’s criminal tax division are Bank Hapoalim, Bank Leumi le-Israel BM and Mizrahi-Tefahot, the sources said.

The shift to Israel from Switzerland, for years the main focus of the Justice Department’s campaign against offshore private banking secrecy, signals the broadening of a landmark probe by the agency that began in 2007 with UBS AG, Switzerland’s largest bank.

The shift also opens up a potential sore spot in the historically close relationship between the United States and Israel, a key diplomatic and military ally in the Middle East that is the biggest recipient of U.S. aid ~ $3.1 billion last year.

U.S.-Israeli relations have come under strain in the past year, after Obama’s drive to relaunch direct peace talks between Israel and the Palestinians collapsed, although both sides say their decades-old alliance remains unshaken.

The scrutiny of the three Swiss branches of the Israeli banks is at an early stage and has not reached the level of that of Credit Suisse, which received a target letter from the Justice Department in July, or of HSBC Holdings, a major European bank, and Basler Kantonalbank, a Swiss cantonal bank, said the people briefed on the matter.

U.S.-SWISS ARRANGEMENT CITED

Aviram Cohen, a spokesman for Bank Leumi in Tel Aviv, wrote in an e-mailed statement on Thursday that

“the request was for general statistical data. It appears that this data was to serve as a basis for a comprehensive arrangement between the Swiss and American Authorities. Obviously, Bank Leumi Switzerland is cooperating fully with the Authorities, in accordance with Swiss Law and under legal advisement.”

A spokesman for the Bank of Israel, the country’s central bank, said on Thursday the agency

“cannot comment on questions that refer to specific banking corporations.”

One person briefed on the matter said the U.S. Justice Department

“tries to deal with the entity, not the government” in its crackdown on tax evasion.

The scrutiny comes during a wide-ranging campaign by the Justice Department to force nearly a dozen Swiss banks now under scrutiny to pay collectively billions of dollars in fines and admit to criminal wrongdoing.

The focus turned to Israel with a letter dated August 31 from the second-highest law enforcement official in the United States, Deputy Attorney General James Cole. Cole gave the three Israeli banks, along with seven Swiss banks, until September 23 to produce broad statistical information on their Swiss operations with U.S. clients.

The data requested, according to people briefed on the matter, cover the types of accounts disclosed by UBS in 2009 as part of a deal with the Justice Department to settle U.S. charges that it enabled scores of wealthy Americans to evade billions of dollars in taxes. It also covers other types of accounts, including those opened after the UBS settlement with the Justice Department in February 2009.

Under its settlement, UBS entered into a deferred-prosecution agreement, paid a $780 million fine, admitted to criminal wrongdoing, and eventually disclosed details for clients who had unreported accounts of at least 1 million Swiss francs (about $1.15 million) or who owned sham company accounts with that total. The accounts in question covered 2001 through 2008.

10 BANKS

While UBS turned over client names, the Cole letter requests only broad, statistical information on how many American taxpayers hold those types of accounts at the 10 banks covered in the letter, the persons briefed on the matter said. In addition to the three Israeli banks, institutions that received the letter include Credit Suisse AG; HSBC; Julius Baer and Wegelin, both smaller private banks, and Basler Kantonalbank.

All the banks are being questioned on suspicion of having enabled wealthy Americans to evade taxes, a criminal offense, through unreported bank accounts, people briefed in the matter said. Some banks, including Credit Suisse, also are suspected of lying to the U.S. Federal Reserve and providing unlicensed banking services to American clients.

American officials are concerned that the 10 banks appear to have accepted hidden money from American clients who fled UBS in the wake of its scrutiny and assertions by Swiss officials that offshore tax evasion would not be tolerated under the cloak of Swiss bank secrecy rules, the people briefed on the matter said.

Swiss banks argue that U.S. laws, which do not distinguish between tax fraud and tax evasion, should not apply to Switzerland. The Alpine country has a tradition of financial secrecy that punishes the disclosure of client data.

ED: The banking cartel made sure to establish Switzerland as a safe place to place their illegally gotten gains. This is one reason the country never goes to war, its sole raison d’être is protection of funds. Most notably this includes funds stolen and kept from Holocaust survivors and their descendants who have not been able to reclaim their pre-WWII holdings.

David Garvin, a tax lawyer in Miami representing American clients of offshore banks, said,

“Israel isn’t really anxious to be viewed as turning people over.”

A spokesman for the Israeli embassy in Washington did not respond to questions.

ED: Hmmm how strange for such an open-to-investigation, honest institution!

NO COMMENT

Benny Shoukron, a spokesman for Mizrahi-Tefahot in Tel Aviv, did not respond to requests for comment. Ofra Preuss, a spokeswoman for Bank Hapoalim in Tel Aviv, referred calls to the bank’s Swiss branch in Zurich, Bank Hapoalim (Switzerland), saying, 

“They’re separate from us.”

A spokeswoman for the Swiss branch declined to return calls requesting comment.

ED: I rest my case on their openness and intrinsic honesty!

Datan Dorot, a tax lawyer in Miami who represents U.S. clients of Israeli banks, said that bankers from an Israeli branch of Bank Leumi called his clients about six weeks ago to tell them they needed to close their accounts at the bank’s Swiss branches because of scrutiny by the Justice Department.

Many of his clients, Dorot said, hold dual U.S.-Israeli citizenship and had opened their Israeli accounts with Israeli passports and not disclosed their U.S. citizenship ~ a factor that makes them U.S. taxpayers.

ED: Interesting that people like Chertoff, for example, are Israel firsters, but when it comes to greed, they are American!

As the Zionist criminal Rabbi Steven Wise put it, “I have been an American for 64 years but I have been a Jew for thousands of years.”

Dorot said Bank Leumi’s advice that clients close the accounts ~ and presumably open new accounts elsewhere ~ could cause problems for the clients because the U.S. Internal Revenue Service does not consider merely closing the account to be enough; the U.S. taxpayer must also report the account to the IRS and pay taxes on it. “The Israeli banks are suggesting a very bad idea,” Dorot said.

LIBYA’S SWISS JIHAD, MORE THAN YOU EVER WANTED TO KNOW…

VT YOUR OWN CAPTION HERE CONTEST

 

By Gordon Duff

STAFF WRITER/Senior Editor

Veteran’s Today

March 13, 2011

Libya isn’t the world’s first all corporate war.  Nobody expected a move against Libya, certainly not as a part of the drive for democracy that is sweeping the Islamic world.  Moving against an oil giant with a military under tight controls based on tribal loyalties made Libya a poor target.

For decades, Gaddafi has been playing every card with genius, savior of Africa, leader of the Arab world, closet friend of Israel, partner in the war on terror, Gaddafi had proven himself a master of “both sides against the middle” politics and quality theatrics.

To the “Masters of the Universe,” however, it looked like time was creeping up on Gaddafi.  With his protectors, American and Britain, in economic ruins and and his nation seen as ripe for overthrow, wheels were set into motion.

TOO GOOD TO BE TRUE

From day one in Tunisia, the hand of the French intelligence services was seen.  It was easier to look away and pretend everything was OK, that the sudden push for democracy was real.  Egypt was the big surprise and the one that may have had its roots in “plots within plots” but took on a life of its own.  We simply won’t know until we see who takes power after the smoke clears.  This is how things are.  Trust no one.

Is the fight for freedom across the Islamic world a move by European groups to realign business prospects in oil production and exploration and banking?

As things are coming to light, there are two sides in the conflicts:

1. The continental European nations, the EU plus Switzerland and Israel against..
2. The United States, Great Britain, British Petroleum (acting as a nation with Tony Blair as defacto head of state) and….Israel

The money that started it all, Swiss. 

Organizing it all, the intelligence services of France and Israel.

The game, as usual, control of assets, cash and oil.

The victims, as usual, everyone.

“PLOTS WITHIN PLOTS”

Again we ask the question, what if everything you were told was a lie? 

Never has a conflict been more convoluted than the current civil war in Libya, a series of plots within plots.  Thus far, all reporting has been childish conjecture or, as is almost always the case, misdirection.

The “other” story of Libya is one of oil, as expected but more, frozen assets, allies at each other’s throats and the “usual suspects,” international bankers, intelligence agencies and arms peddlers. 

There was, in fact, no popular uprising at; there has been, however,  a carefully staged and carefully orchestrated attack on Libya’s assets coordinated with another move by oil speculators to gut the American economy of that cash bubble generated by trillions in bailouts.

As with any unpleasant reality, the real direction to look is financial.

“Follow the money.”

 

THE SWISS PROJECT

The roots of the current “conflict” in Libya date back to 2008 in Switzerland.  The groundwork was laid by Tony Blair in 2004 but we will come back to that in a minute.  Truth is, as always, stranger than fiction and “fiction,” of course, is the basis of politics and foreign policy, Americans know that for sure.

Back in 2008, the Swiss arrested Colonel Gaddafi’s son, Hannibal along with his wife.  The SWAT teams sent to the presidential suite of the luxury hotel slapped Hannibal around a bit, putting him in a holding cell for two days.  The charge was beating servants.

The son, as a direct family member of a head of state, enjoyed full and very real diplomatic privilege in Switzerland.  Was this part of a plan to incite difficulties between Switzerland and certain friends and business partners of hers and Libya?

We believe this provocation was purposeful and carefully planned.  The Israeli intelligence service Mossad, from the outset, took part in the planning and helped bring the participants together, eventually involving France and Italy, nations they are able to influence almost as much as the United States.

Gaddafi had been “set up.”

GADDAFI STRIKES BACK

In answer to this action, taken as an insult to Libyan honor (bolstered by a very strong relationship with the United States and Great Britain), Colonel Gaddafi ordered Swiss businesses in Libya closed, flights to Switzerland cancelled and removed $5 billion in cash from his personal accounts in Swiss banks.

Gaddafi also cut off oil exports to Switzerland.  Libya is a primary source of oil for Italy, France, Austria and Switzerland.  Two Swiss (Israeli) businessmen in Libya were detained.

Switzerland, with the very temporary support of Italy, created a “blacklist” in order to prevent Libyan’s from traveling, not only in Switzerland but throughout the 25 Schengen (EU) nations as well.

Gaddafi responded by calling for Jihad on Switzerland, asking all Muslims to boycott Swiss products, close ports to Swiss ships and to withhold landing rights for all flights from Switzerland.

This was largely ignored.

Then, predictably, Italy’s controversial Prime Minister, Berlusconi, flew to meet Gaddafi and switched sides.  Italy (Berlusconi) has extensive business interests in Libya and much to lose.  Spain quickly followed suit.

If you wondered why the conservative Swiss, an open society that welcomes refugees from around the world would pass a bizarre and obnoxious act outlawing minarets, the reason is simple.  This was a planned provocation meant to push Libya to more extreme measures.

Switzerland was planning to organize their banks and those of the EU and seize Libya’s vast assets, tens of billions in cash, bonds, equities and land, inside the European Union.  Libya’s good friend, Berlusconi, playing both sides against the middle, as usual, was first on board, followed by Sarkozy.

2004 TONY BLAIR AND THE AMERICANS

Run the clock back to 2004.  Blair and Bush believed they had the two wars, Iraq and Afghanistan under their belts.  Plans were underway to invade Iran, special operations groups from the US were being deployed to stage false flag attacks on American forces in the Persian Gulf. 

“Ground zero” would be Bahrain where Shiite groups were being lined up to appear allied to Iran.  Key players were put in place at the highest command levels in the region; commanders tied to Neocon/Dominionist groups in the US, violent extremists willing to plan and execute terror attacks against American troops.

Why is Iran still there?  Why didn’t the next “9/11″ come off as scheduled?  The White House plans were derailed by Marine commanders in the region aided by members of the intelligence community still loyal to the US. 

This is not my story to tell but it is an important one. 

Real American heroes prevented a very real war and some paid a very high price.  This isn’t “9/11″ with dissolving buildings and mystery missiles.  The evidence is all there with provable treason leading to the highest levels of the US and “others” already ‘in the can.’

In March 2004, when Tony Blair, showed up in Tripoli, it was like an astral convergence.

The deal was simple.  British Petroleum and a consortium of American oil exploration and supply companies would put Libya’s oil and gas industry on the map. 

Left out in the cold?  France and Italy, the nations that had been with Gaddafi from ‘day one.’

WHAT WOULD GADDAFI GET?

VT YOUR OWN CAPTION HERE CONTEST

An invitation to join the Global War on Terror, the “two bit hustle” dreamed up by Netanyahu staffers now running Bush like a hand puppet.  Imaginary “bin Laden” and “Al Qaeda” would allow the globalist Anglo-Israeli/American franchise to sweep Central Asia like a plague.  Gaddafi bought a front row seat.

A “pass” on his WMD programs.  Sham inspections of Libya’s nuclear, biological and chemical warfare programs, long in partnership with South Africa and Israel, would be swept under a rug, as they had been earlier by the South African Truth Commission.  Secret supplies of deadly VX gas produced at Roodenplatt Research Laboratories outside Pretoria by Dr. Wouter Basson were never destroyed as reported but transferred to Libya.  (Ref:  Dr. David Kelly)

Africa:  Gaddafi was allowed a free hand to create the African Union, an organization he headed until a few weeks ago ~ his goal of uniting Africa under a single currency and military force and Libyan leadership with corrupt leaders subject to Libyan petrodollars.

Tony Blair, in itself, a “mixed bag”

As an interesting aside, Berlusconi’s role, providing prostitutes to influence Gaddafi’s election as AU chief is outlined below:

Al Mismari, Gaddafi’s diplomatic chief for 35 years and now in exile in Paris, explained what happened next.

“Berlusconi helped resolve the situation and secure Gaddafi’s position by sending in two beautiful escorts to the leader of the African nation in question. This had the desired effect. The leader was convinced and he gave his vote to Gaddafi ~ and from here is born the expression ‘bunga bunga’ which indicates salacious, adventurous women.”

Gaddafi’s dream, a new Roman Empire across Africa, with full “New World Order” approval, may now be on hold.  Gaddafi believed he had “bought” loyalty from the Washington-Tel Aviv-London gang. 

We are watching this being played out at this writing.

AN OIL WAR FROM THE FIRST MINUTE

Since Blair’s 2004 deal, ENI, the Italian oil giant and TOTAL S.A, the French based multi-national giant, long preeminent in Libya were pushed aside by BP and a consortium of American companies. 

A “regime change” in Libya, packaged as a “democratic revolution,” carefully staged and financed by France and Italy, could quickly remove Gaddafi and allow Libya’s assets in Europe to be stripped away while American and British interests. 

Assets long in place inside the Libyan armed forces would be activated against Gaddafi rule which would predictably orchestrate into a popular uprising.

European oil and banking interests had begun a proxy war against the United States and Great Britain over Libya’s resources.  Tens of thousands of Libyan’s yearning for democratic reforms would be drawn into the conflict; one never intended to improve their lot.

Israel would be strongly aligned

behind the Gaddafi and his Anglo-American allies

while having taken a preeminent role

in instigating the move to eliminate

Anglo-American influence in Libya.

The talk,

“No-Fly Zones”

and military intervention,

all talk for the “tourists.”

WINNERS AND LOSERS

Gaddafi is an enigma, a man divided.

Gaddafi is a traditional tribal leader when convenience serves him,

Arab, devout Muslim,

the last pan-Arabic nationalist left.

His real roots are pure “Cold War,”

aiming for the status of Nassar, Nehru and Tito,

playing “brinksmanship” on a narrow strip of land

under the close and loving hand

of the United States Navy and its Fleet Marine Forces in the Mediterranean.

Gaddafi’s watchwords?  “Keep em’ guessing.”

In the past half dozen years, Gaddafi has gone from rogue Jihadist to Bush-Blair-Netanyahu errand boy, allowed enough rope to “muck around” Africa, keeping his Marxist “thumb” on the pulse of Islamic discontent.

And…Gaddafi was good at “paying bills.”

The first big gains have been in oil speculation.  The already inflated oil market, $80 a barrel prices in a $45 a barrel world economy has seen prices surge over $100.  This is another blow for the United States, already suffering a stuttering comeback from the collapse of 2007-8.

As Gaddafi holds on, his long time allies, BP and his friends in Houston will be the big winners.  They stayed the course, kept the US out, managed the press through their partnership AIPAC and the GOP and restrained the unproven Obama and Cameron from the desire to “do what is right.”

The Swiss and their EU banking partners are going to hold onto Gadaffi’s money as long as possible. 

The fractured economic status of the EU, particularly after Greece’s “scam job,” bilking $150 billion debt relief out of the German dominated EU through “cooking the books” (a VT exclusive!) will make any repatriation of Libyan funds very “back burner.”

EU currency traders are squirreling away millions a day, through trading programs collateralized by Libyan assets seized without cause or due process.

The biggest losers are the dead,

supporters of democracy played as pawns by global corporations,

isolated from needed international support

by carefully crafted public opinion,

balancing “mainstream” waffling and uncertainty

against a backdrop of anti-American feeling and wild conspiracies.

Worse still, a precedent has been established.

News media, believed by many to have outgrown the corporate censorship mold, has continued to disappoint. 

Scandals exposing Wikileaks as a combination of corporate censorship and Israeli intelligence “black ops” may have had its toll on the media independence. 

Wikileaks “burned” press credibility like no hoax in history.

The biggest loser, perhaps is faith in human decency. 

Can decent people who stand against oppression and dictatorship 

stand a chance? 

Are people powerless in a world dominated by globalist cabals?

Are “they” so “good” that nothing can’t be twisted and debased?

THE RABBI AND THE GENEVA ACCOUNT

July 12, 2010
This is Zionism
by Daniel Ganzfried

The World Jewish Congress is at the brink of disaster. Impropriety, embezzlement, money laundering: these are the accusations directed against Israel Singer, the strong man of the WJC. Singer ordered the transfer of $1.2 million dollars from the WJC to an account owned by his friend. Now Jews throughout the world demand unreserved clarification.

Such a proud organization! In 1998 the World Jewish Congress (WJC) humiliated Switzerland, extracting 1.25 billion dollars from its banks ~ as compensation for a few dozen million dollars, based on unaccounted Jewish accounts.

It had been a long time since WJC President Edgar Bronfman and his New York-based Secretary General Israel Singer had cause to be so delighted; perhaps as far back as the end of the Eighties, when they succeeded in exposing the Nazi past of the Austrian President. The State Department placed the gaunt statesman on its Black List, and Mr. Kurt Waldheim, former UN Secretary General, was effectively prohibited from setting foot on US soil. Not bad.

This particular sleight of hand resulted in the arrival of Russian Jews into Israel and began the surge of violence and creation of settlements. For details please refer to the following link.

THE UNVEILING OF THE B'NAI B'RITH PART 5 by WILLIAM COOPER

http://snippits-and-slappits.blogspot.com/2009/05/unveiling-of-bnai-brith-by-wm-cooper_8676.html

Another unforgettable example: In 1952, WJC president Nachum Goldman brokered an agreement between post-war Germany and Israel. The Germans paid compensation for the crimes committed by the Nazis. Thus the young state became the legal successor of the murdered Jews, and at the same time solidified its claim of being the representative of the entire Jewish nation ~ a doctrine that made Israel immune against criticism and outside involvement. From that point, the World Jewish Congress served as its international promoter.

The WJC's political birth certificate was issued in 1942. On the 20th of January the Nazis, assembled in a Villa on the shore of Lake Wannsee in Berlin and adopted the "Final Solution of the Jewish Question", i.e. the application of mass murder as an industrialized enterprise. Gerhard Riegner, a young lawyer and the Geneva based representative of the WJC since its establishment in 1936, was one of the first to learn of the unthinkable. True, his telegram to the State Department did not have the desired effect, but his act did justify the role of the WJC as the vanguard of the Jewish People.

Today, the roof organization comprising some 80 national and international Jewish organizations is struggling for its survival ~ and the battle is being waged within the organisation itself. The allegations being made range from impropriety, embezzlement and even money laundering. The conflict takes place in Switzerland.

The main roles are played by the two men heading the organisation: Edgar Bronfman, billionaire, former owner of the booze empire Seagrams, who has served as WJC President since 1981; and Israel Singer, ordained rabbi, who has been the WJC's strong man since the mid-Eighties.

The grounds for the conflict relate to $1.2 million, allegedly hived off from a secret WJC account by Singer for private purposes, who acted with Bronfman's approval. What is clear is that on July 1 2003, Singer personally arranged the transfer of that money to a friend in Israel ~ without informing any relevant WJC personnel in Geneva.

As a consequence, the umbrella body of the Swiss Jewish communities (SIG) was effected. The Geneva-based President, Alfred Donath, acting on behalf of the Swiss Jewish community requested clarification as to what had transpired. But the 72 years old Professor and medical doctor was immediately inundated by verbal abuse and insult from Singer which placed him under intense pressure.
What happened?

In 2001, the World Jewish Congress received 1.5 million dollars from its Israeli associate organization, the Jewish Agency. Earlier, due to its own budgetary problems, this semi-governmental organization had decided to terminate all payments to Jewish organizations outside of Israel. But Singer, was concerned with his financial problems. He manages to squeeze this final payment to New York from the Agency.

What he does not inform his friends in Jerusalem is that the money is not intended for WJC activities, but for his own personal pension.

In September, Singer intended to give up his position as Secretary General to a successor, and would be elected Chairman of the Board of Governors of the WJC, an honorary post. Singer would receive an annual compensation of more than $200,000. But who knows how long that would last? A pension would just be fine. How shall he obtain it?

In separate installments to Geneva UBS Account

The legal requirements in New York proved to be too complicated and the Israeli branch also does not provide any attractive options. So he parks the money in an account of the somewhat inactive office in Geneva with only an ailing, eighty year old bookkeeper serving as watchdog over its financial matters.

In a number of transfers from the WJC headquarters in New York, a total of 1.2 million dollars are deposited at the Chemin Louis Dunant branch of the UBS bank. The last two transfers of $150,000 and $200,000 are banked on January 10 and February 11, 2003, respectively.

The beneficiary account no. 0240-255888.60K is categorized as "SPECIALE". At that point, Singer and the aged bookkeeper are the only persons aware of its existence.

Then, at the turn of the year 2002/2003, the new Secretary General employs a dynamic young woman, Maya Ben-Haim, as office director at the office located by the Rhone. The 29 year old woman has no knowledge of the million dollar deal, but she does discover other "alarming irregularities" in the books.

She does not hesitate to inform the bookkeeper on June 24 that she intends to dispense with his services and gives him notice for the end of September.

On June 29, 2003, she meets her boss in London and submits a report regarding financial irregularities and the dismissal of the bookkeeper. "The most important question seems to be, why he withdraws 2,200 Swiss Francs in cash each month in addition to his salary". Later, a witness would say that Singer looked "somewhat shocked".

However, at that point in time, none of the people present were aware of how much money is in fact involved. And what does Singer do?

Hurriedly he sets out for Geneva. In a lightning operation he drags the ailing bookkeeper from his nursing home to the bank. He is in a hurry: It is July 1st. The terminated bookkeeper's signatory rights will terminate on the following day. Everything works out well. Together they strip the secret account of every one of the 1.2 million dollars. Later this will prove to have been a mistake.

The amount designated as "For the pension", is transferred to Singer's friend, Zvi Barak. The money is henceforth deposited in an account owned by Barak at the HSBC bank in London.

Singer arranges for the Geneva office to close

For an extended period, the money transfer remained unknown by the Geneva WJC office. It could have remained unknown to this day. But on October 2, 2003, the young director's attention is drawn to a strange bank statement: Following an individual international transfer of 1.2 million dollars account 0240-255888.60K closes with a debit balance of $40.73.

The account did not have sufficient funds to cover the bank charges. Ms. Ben-Haim is shocked. The attorney of the Geneva WJC office, too, shakes his head in astonishment. She immediately informed New York. Avi Beker, Singer's successor in the position of Secretary General, issues immediately an order to conduct an internal investigation.

Then, in November, the second surprise: Avi Beker retires from the WJC, and WJC management circles say that he was provided with a golden parachute of one million dollars. In the absence of a Secretary General, ongoing WJC business is managed by a newly created Operations Committee which, in addition to Israel Singer, comprises of WJC Vice President Isi Leibler and Executive Director Elan Steinberg.

Neither of the latter were aware of the events in Geneva. As part of their "general efforts to restructure the WJC", the gentlemen visit the Geneva office on November 19. Judging by the minutes, they are still ignorant about the Geneva account at this point. The visit is followed by additional visits in December. Neither of them are informed, not even by their colleague Singer.

At Singer's recommendation, the Operations Committee closes the Geneva office on March 30, 2004. All employees are given notice with immediate effect. In a letter to the Geneva director, the Operations Committee declares: "The WJC has decided to discontinue the maintenance of a permanent representation in Geneva".

The employees are laid-off with immediate effect. Ms. Ben-Haim turned to the Labor Court, contesting both her dismissal and the office closure. She first obtains a delay and later receives personal compensation.

The one remaining person is the long time legal adviser of the WJC Geneva office, Daniel Lack. It is he who alerts the president of the Swiss Jewish Community Federation (SIG). On April 25, Alfred Donath writes to Edgar Bronfman, requesting in a polite but firm tone, the need to implement an audit. He also asks why the Geneva office is being closed so suddenly and requests that the decision to close the office be reconsidered.

On July 14, attorney Lack writes a letter headed "Confidential" to Israel Singer, talking about "certain potential and serious irregularities". He warns him. "I believe an audit performed by an independent company is required. I understand that the situation may be quite delicate for you, but we must act, act visibly. We must protect the WJC from all kinds of accusations of impropriety, embezzlement and money laundering".

Lack also informs the WJC. Thus for the first time, the Operations Committee is informed about the events in Geneva. On July 18 Singer, Leibler and Steinberg meet again. According to the minutes, Singer assures his colleagues that the $1.2 million constitutes an "authorized money transfer to the benefit of WJC pension".

However, they insist on the reimbursement of the 1.2 million dollars, and the transfer of all the money to a special WJC account in New York. Singer is disqualified from involvement in the issues because of his personal interest. At that point the money had earned $12,000 dollars interest, a fact that is "acknowledged with satisfaction". But Leibler's and Steinberg's satisfaction does not last long.

After comprehending the content of the letter from Lack they demand information from their colleague Singer regarding the suspicious transfer of money. The response does not take long: On August 16 they are informed by an email headed "private and confidential" from WJC president Edgar Bronfman, of a decision to dismantle the Operations Committee, and to substitute it with a Steering Committee.

Bronfman launches counter attack

Bronfman installs "my right hand at Seagrams", Stephen Herbits, to head the brand new committee. The 62 year old was at one time a US Department of Defense official under Donald Rumsfeld. Bronfman trusts him to "fight off all attacks against the WJC", and prophetically warns his colleagues in a memorandum: "I consider all these attacks as attacking my office, my integrity and my person. No effort should be too great, no expense too high, in the battle against these disgusting libels."

But the annoying Swiss will not be easily placated after Singer's attack on their leader, Alfred Donath. They demand a thorough audit in Geneva. Vice president Isi Leibler, too, keeps on nagging. With his soft-spoken voice uttering sharp words, the 70 year old Leibler in Jerusalem demands clarification.

"I believe that I am speaking on behalf of the majority of 400,000 donors, who are entitled to request responsible management, transparency and accountability. The times when leaders and managers handled their organizations as their personal fiefdoms are over."

In fact, in the light of the Geneva affair many donors suspect that other questionable business transactions may emerge from behind the secret account. Together with Isi Leibler and the Swiss Jews, they demand a comprehensive and independent audit of all of the WJC's financial operations conducted during recent years; and they also insist that the publication of all financial reports for those periods be released and insist on transparency in respect to all assets and bank accounts everywhere in the world.

This could mark the end of this non-profit organization that disposes of an annual $8 millon budget, and that has been run by Bronfman and Singer like their own little business for too long. Just like their main sponsor Edgar Bronfman, the other 400,000 donators also deduct their contributions from their taxes. Now they must be concerned about the income tax inspectors' interest in the WJC.

In order to at least appease the Swiss, Bronfman sent his new head man Stephen Herbits across the ocean. Amongst his luggage he was carrying a hastily assembled auditors' report on the Geneva account, prepared by the accounting firm Loeb & Troper. On October 28 he meets the SIG delegation in Zurich. But having regard to the fact that this firm has been working for the WJC American section for years, there were doubts regarding the New York auditors' independence. Consequently at the end of the evening meeting, the Swiss Jewish group refused to sign the "mutual agreement" prepared in advance by Herbits.

The Swiss Jews reiterated their demand for unreserved clarification of Singer's "Geneva-Gate" (The Jewish weekly "Tachles"). Herbits was able to provide his dissatisfied Swiss Jews only one little piece of comfort: "The Geneva office of the WJC will not be closed. Quite the contrary, I am currently recruiting a new team." But here, too, the other side senses a trick: Who can guarantee that the relevant files stored in the deserted office in the Rue de Varemblé will be left intact until then?

What remains is the involvement of the authorities. Until now, the spokesperson for Geneva's district attorney's office says, they had never dealt with the WJC in relation to this matter. However, Isi Leibler concedes that this could be a possible outcome.

Until then, the truth regarding the WJC account is well kept in the Geneva UBS branch, protected by the Swiss banking secrecy, which Singer to this day claims was the main reason, why the $1.25 billion settlement amount agreed on in 1998 is proceeding so slowly.

Who would have thought that the fate of the World Jewish Congress would one day be determined by a secret account in a major Swiss bank?