26 March 2001

Promised Land

by Andrzej Gasiorowski

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Gad Ze'evi 01

Yesterday Gad Ze’evi was arrested by Israeli police. This man claimed to be one of the most powerful businessman and politician in Israel until yesterday.

In 1991 Gad Ze’evi was proposed by the “Polish Group” (Bagsik – Gasiorowski) to re-purchase PAZ Oil Company from Polish Group for the price of 10Mill USD less than the “Polish Group” had paid half year ago. Inclusive was a very attractive condition of payment which was in 8 installments during the next 4 years. But Gad Ze’evi wanted to have all the company without payment. After signing the contract with Bagsik and Gasiorowski, he started a 3 year long spectacle of courts and arbitrations against Bagsik and Gasiorowski, thus freezing their assets and making them impossible to sell the PAZ company to other buyers. He and one of the most powerful lawyers in Israel, Yigal Arnon and others made several trips to Poland. By using privately Israeli diplomatic channels, they contacted high Polish officials, people from the Polish and Israeli media, politicians, security and intelligence. They purposed to initialize all sorts of action in order to start extraditing procedures against Gasiorowski and Bagsik. Hoping this would force them to make compromise in court. Ze'evi signed a secret agreement with the Polish Ministry of Finance to cooperate in hunting for Gasiorowski and Bagsik trying to trace their assets, in order to extradite them to Poland. He placed several lawyers on his payroll (Jews born in Poland), business-people, politicians, etc. In Israel Gad used his connections with Mossad, Shabak, Ministry of Energy, Finance, etc. Gad was forcing progress in extraditing procedures. But despite all the harassment and the extreme difficulties with life's situation Gasiorowski and Bagsik did not compromise in court. Gad Ze’evi lost 7.5 mill USD in down payment, and the rights to block PAZ shares and other assets of Gasiorowski and Bagsik. However, costs of defending consumed most of the amounts. PAZ OIL company was sold back half year later to the Liberman family by Bagsik and Gasiorowski for quarter of the price. Most of the funds that were still blocked by the Polish government, and were finally transferred back to Poland, as per an achieved agreement with the Polish government.

 

Gad Ze’evi was a main reason of ten years of any sort of social and financial harassments for Bagsik & Gasiorowski and their families. Fighting for power and money, he was using well known in this country tactic of personal extermination of the opponents, their financial resources, family life, trying to achieve his goal by any possible means.


Globs:  Gad Zeevi arrested in Bezeq affair
by Assaf Zohar, 26.03.2001

Gad Zeevi and three other leading businessmen were held for questioning yesterday on suspicion of fraud in the acquisition of 20% of Bezeq. The police allege the four obtained the shares under false pretences. The Israel Police Force National Serious and International Crimes Unit conducted the investigation, now being reported exclusively in “Globes”, in recent months in complete secrecy.

In addition to Zeevi, police investigators yesterday arrested businessman Mikhail Chernoy, Adv. Peter Gad Naschitz from the Naschitz, Brandes, and Co. law firm, and businessman Zeev Rom.

The police spokeswoman last night said, “Israel Police Force National Serious and International Crimes Unit today held a number of suspects for questioning in the Unit’s investigation. The suspects are linked among other things to irregularities in the purchase of Bezeq shares.”

As far as known, the investigation into Zeevi’s business dealings with business and political concerns in Israel and overseas is focusing on Zeevi’s sources of financing for acquiring his Bezeq shares. Zeevi purchased 20% of Bezeq for $600 million. Police suspect that the Chernoy family of Russia was one of the main backers for the deal. The Chernoy family includes Mikhail Chernoy, who resides in Savyon and recently sold control of Bulgarian cellular company MobilTel.

The rest of the Chernoy family lives in Russia. The police suspect that Zeevi and the other suspects in the share transaction violated the law by not properly reporting their sources of financing, which included the Chernoy family. The police are therefore alleging fraud through failure to report and improperly obtaining expected profits from illegally acquired shares.

Police officers expressed fear that undesirable elements with suspected links to Russian Mafia elements would succeed in taking over a considerable part of Bezeq. The investigation, which is being conducted simultaneously in Israel and overseas, yesterday became public knowledge with the arrest of the chief suspects. Investigators also searched for documents linked to the affair in the suspects’ homes and offices.

Adv. Peter Gad Naschitz was released yesterday, and the police believe that the other suspects will be released on bail.

 


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Related links:

Zeevi affair  

Beware Zeevi

Gad Zeevi About to Raise $250 Mln in Private Bonds

$29.1 Mln Going, Going, Gone: Japan Auto sold to Gad Zeevi

Zeevi Group Expected to Acquire Barnovsky Family's Share in Japanauto for $30 Mln

Malam Systems demanding 50.1% of Geo Interactive

“Yediot Ahronot”: Polish group affair: Court sentences ex-Paz owners to 9 years

Zeevi, Chernoy negotiated to acquire MobilTel of Bulgaria

Police seize Zeevi, Chernoy’s agreement on Bezeq deal

Police suspect Ben-Eliezer improperly allowed Zeevi to invest in Bezeq

Government Companies Authority to sell Bezeq controlling interest next week

Police: Russian mafia tried to take over Bezeq

Chernoy’s lawyer: Israelis tend to brand Russian immigrants mafioso

Gad Zeevi arrested in Bezeq affair

Police investigating Zeevi's finance for Bezeq investment

From our archives: Ben-Eliezer Approves Acquisition of 20% of Bezeq Shares by Zeevi

 


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