Dan Dankner 311.
(photo credit: Ariel Jerozolimski)
The State Attorney’s Office announced on Monday its decision, subject to a
hearing, to prosecute former chairman of Bank Hapoalim Dan Dankner for suspected
offenses of bribery, corruption, fraud and breach of trust in a corporation,
money laundering and harming proper banking practices.
Moshe Lador also announced Dankner’s former secretary, Hagit Malka, will also be
prosecuted on suspicion of money laundering.
Allegations against Dankner
center around alleged misconduct during Bank Hapoalim’s purchase of the Turkish
BankPozitif during 2005-2008.
Dankner is alleged to have taken an active
role in Bank Hapoalim’s acquisition of BankPozitif, a Turkish bank owned by
That transaction was carried out in partnership with
RP Capital, an investment group established in 2005 and headed by Israeli Rafael
Berber, formerly of Merrill Lynch.
According to Globes, Bank Hapoalim
bought 57.55 percent of BankPozitif and RP Capital acquired 7.45%.
Bank Hapoalim chairman, Danker was responsible for managing negotiations between
Bank Hapoalim and RP Capital, after which RP Capital received $25 million in
Throughout the transaction, Dankner is alleged to have
concealed from Bank Hapoalim officials a business relationship that the RP Group
had with Elran Investments and its subsidiary, Elran Real Estate, both of which
are controlled by Dankner’s family. At the time, the Elran Group was
experiencing financial difficulties.
Dankner is also alleged to have
received a 5m. euro loan in 2008 from the Dutch DHB Bank, which is also owned by
“Dankner’s loan was received at the height of the global
credit crisis, when Dankner and his family could not get a loan from any bank
because of the economic situation and because of Elran Group’s economic
situation,” said the State Attorney’s Office in a statement on
While DHB Bank was approving Dankner’s loan application, Dankner
approved a dividend to BankPozitif, an act that directly benefited
Also at that time, Bank Hapoalim’s Board of Directors, of
which Dankner was chairman, approved the purchase of 4.82% of BankPozitif shares
from Cingillioglu, who as a result received a sum of around $15m.
is alleged to have received bribes from Cingillioglu in connection with these
Further, in order to receive the loan from DHB Bank, the State
Attorney’s Office claim that Dankner presented a false statement of his personal
wealth in a document he had signed declaring that he had 50m. euro of
Dankner is further alleged to have laundered that loan money,
rather than reporting it, by making several property transactions.