Michael Cherney Vindicated In Israel Bezeq Case

When not engaged in court harassment cases,
Cherney is shown here helping Israel terror victims

By Israel News Agency Staff

Tel Aviv----February 21.....The former General Director of FIBI Bank, David Nakhimovsky, admitted in Tel Aviv District Court that he had lied to investigators regarding what he knew about Russian-Israel businessman Michael Cherney involvement in an earlier bid to acquire a significant share of Israel telecommunications giant Bezeq.

The Israel court case centers on a bid by Gad Zeevi and Cherney to acquire 20 percent of Bezeq five years ago. Zeevi received credit of $643 million from a consortium of banks headed by FIBI (which serves as Bank Leumi Zurich representation), this in return for a lien on the shares to be purchased and a bank guarantee from FIBI Switzerland amounting to $143 million.

According to the indictment, had the banks known Cherney stood behind the guarantee, it might not have approved the loan or the required permit granted by the Israel Communications Ministry.

Cherney, who moved to Israel several years ago, has maintained the deal was totally transparent—signed openly, without hiding his involvement with Zeevi from anyone, including the banks. The arrangement had the option for Zeevi to pay it back with interest after a period of time, or to acquire a share package if and when he received all necessary permits from the Israel Communications Ministry.

Last week Nakhimovsky admitted in Israel court that he lied to Israel police investigators and he did know that the money in Zeevi’s account belonged to Cherney. He allegedly hid this information, as he did not want the Swiss to know that Cherney was involved in the deal.

Cherney’s legal team hailed this admission as a breakthrough in the case, since their client’s testimony was demonstrated to be truthful.

"This case is illegal and idiotic; it is a frame-up that once again damaged the entire country," said Cherney. "According to some estimates, it cost the Israel economy $7 billion in actual capital transfers to friendlier environments outside Israel. By investing in Israel 's energy sector, infrastructure and hi-tech, prominent Jewish businessmen from the former USSR could make a formidable contribution to Israel 's economy, security and society. It's still not too late; but the Israel government must first realize the error of its ways and openly embrace Russian Jewish investments here. If it does not, Israel will remain a mom-and-pop shop owned by a powerful few. And analysts will keep wondering why it is that rich Jews prefer to invest elsewhere rather than in the land of their forefathers."

Following his repatriation to Israel, Michael Cherney maintains business interests in Russia and post-Soviet states, while developing new business contacts between Russia, Europe, Israel, and the US. In Israel, Michael Cherney spends much effort on charity and humanitarian projects that reinforce cooperation between Israel and Russia in fighting terrorism.

Michael Cherney established a Website for his Foundation on June 1, 2001, the night of the terrorist bombing outside the Dolphinarium Disco in Tel Aviv. When Michael Cherney learned the number of victims - 21 dead and over 150 wounded - he realized that rendering assistance required a systematic organized effort.

Prior to 2001, Cherney was engaged in charity work in Russia, Ukraine, Central Asia, Bulgaria, the US - wherever he did business. He made valuable contributions into Jewish philanthropy in Russia. Following the Dolphinarium terrorist tragedy, the Cherney Fund became the helping hand for all its victims. In a misfortune like this, emigres from the former Soviet countries are even worse off than those born in Israel: they don't have a support system or savings.

The Cherney Fund, therefore, renders help mostly to the new arrivals, victims of catastrophes and terrorist acts that continue to bleed Israel, as well as to the low-income victims of terror in other countries. Another equally important task assumed by the Cherney Foundation is the media effort in war on terror. Shortly after the Dolphinarium attack, the Foundation published a book called Dolphinarium: Terror Targets the Young.

The Michael Cherney Foundation has established grants for students from the former Soviet Union in all major Israel universities with an annual endowment of 1 million shekels.

Mr. Cherney and his family live in a suburb of Tel Aviv.