Back   OpEd News
Font
PageWidth
Original Content at
https://www.opednews.com/articles/IDB-bankruptcy-in-the-Tel-by-Joseph-Zernik-130430-581.html
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

April 30, 2013

IDB bankruptcy in the Tel Aviv District Court - corruption of the courts and banking regulation

By Joseph Zernik

The case ushers the financial crisis into the State of Israel, and provides perfect documentation of the tight links between corruption of the courts and corruption of banking regulation. It can further be seen as the parting gift of Stanley Fischer (Governor of Bank of Israel, and Bernanke's teacher) before packing his bags and leaving for good...

::::::::

The case ushers the financial crisis into the State of Israel, and  provides perfect documentation of the tight links between corruption of the courts and corruption of banking regulation.  It can further be seen  as the  parting gift of Stanley Fischer (Governor of Bank of Israel, and Bernanke's teacher) before packing his bags and leaving for good...

Judge Eitan Orenstein
Judge Eitan Orenstein
(Image by State of Israel)
  Details   DMCA

Judge Eitan Orenstein by State of Israel
 
.Chief Clerk. Kobi Bleich by State of Israel

Judge Eitan Orenstein, "Chief Clerk" Kobi Bleich, Tel Aviv Disrict Court

Occupy Tel Aviv encampment, April 29 - Nochi Dankner, one of a handful  tycoons who now control the Israeli economy, is the local embodiment of "too big to fail", "too big to jail".

The default of Dankner's pyramid scheme, I.D.B., is quickly   developing  into a landmark case, the arrival of the global financial crisis to Israel.

The total sum of the loans, which were issued by all major Israeli banks without adequate collateral and in disregard of sound banking principles, is still unknown.  Initially the default was estimated at NIS 4 billion, then NIS 8-9 billion, huge sums in proportion to the local economy.

Initially the banks tried to cover it all up by offering a "haircut", waiving  Dankner's huge loans to the detriment of shareholders and retirement funds, while leaving Dankner in control of IDB.

Public outrage stopped the effort to end the case with a "haircut".

Instead, the case has recently moved into bankruptcy in the Tel Aviv District Court.

During the opening hearing yesterday, Judge Eitan Orenstein offered some tough talk for media consumption, and ordered the parties to reach an  out of court settlement within 48 hours, or else.[1]

However, the records show corruption of the case from day one:  The online public access system of the Court (Net HaMishpat, the  local  equivalent of  PACER in the US courts), shows that the case is NOT sealed.  And yet all details of the  case, except for the case file name, generate a warning message: "YOU ARE NOT  PERMITTED TO VIEW THE DETAILS". That includes even the names of the  parties and attorneys, and the case calendar.[2]

Denial of public access to court records with no legal foundation is a serious violation of the Human Rights of all residents of the State of  Israel.  It also stands in disregard of the scholarly decision of former Presiding Justice Dorit Beinisch of the Israeli Supreme Court in the case  of Israeli Human Rights Association v Minister of Justice (5917/97). [3]

With it, conduct of the Tel Aviv District Court is not surprising, Mr  Kobi Bleich, Chief Clerk of the Tel Aviv District Court, has occupied his office for over two years with no lawful appointment record. [4]

The Israeli public must not let this pass, and must demand full discovery  in this case to show:
* Which bankers violated the law in issuing the loans?
* Which banking regulators violated the law by knowing about the bankers'  practices and turning a blind eye?
* Did Dankner violate the law in his corporate financial reports?

The case can also be viewed as the parting gift of Stanley Fischer (Governor of Bank of Israel and Ben Bernanke's teacher) before  packing his bags and leaving for good. 

As is the case in other nations, the IDB bankruptcy case provides perfect  documentation of the tight links between corruption of the courts and corruption of banking regulation.

The courts of the State of Israel have undergone unprecedented corruption  over the past decade under the tenure of Aharon Barak and Dorit Beinisch  as presiding justices of the Israeli Supreme Court.

* The Human Rights Alert (NGO) submission regarding the US was  incorporated into the UN Universal Periodic Review Report(2010) with a note, "Corruption of the courts and the legal profession in California".
* The Human Rights Alert (NGO) submission regarding the State of Israel  was incorporated into the UN Universal Periodic Review Report (2013) with  a note, "Lack of integrity in the electronic records of the Supreme Court,  the district courts, and the detainees courts in Israel".
____
LINKS:
[1] 13-04-29 Judge Gives Dankner's IDB Development Two Days to Settle With  Creditors _ Haaretz
http://www.scribd.com/doc/138483148/
[2]  13-04-29 I.D.B. Bankruptcy (36681-04-13) in the Tel Aviv District  Court - online public records in Net HaMishpat-- remote terminal
http://www.scribd.com/doc/138498932/
[3]  09-10-08 Israeli Civil Rights Association v Minister of Justice et al ( 5917/97) Chief Justice Dorit Beinish: The new case management system (Net Ha-Mishpat) would require restricting public access to court records _ Globes (Heb + Eng)
http://www.scribd.com/doc/50621508/ 
[4]  12-05-10 Human Right Alert,  Appendix I to Submission; 15th UPR - State of Israel - "Integrity, or lack thereof, of the electronic record systems of the courts of the State of Israel"
https://docs.google.com/open?id=0B8Aa2xQGbmk5cjNxd2szX05oMkU




Authors Website: https://www.scribd.com/Human_Rights_Alert

Authors Bio:

Dr Zernik's core research pertains to e-government and its significance for Human Rights and Civil Society.


His work won appreciation in Israel and abroad:
* Prof Uzzi Ornan - "All power to you! I hope that you see your tremendous efforts reach fruition!"
* Attorney Avigdor Feldman - "In my opinion you are doing very important work" thank you for your thorough and persistent work".
* Prof Amnon Shashua, Mobileye Co-founder - "" very important work".
* International experts, as part of anonymous peer-review - "" challenges current concepts in the field".
Four submissions, which he authored on behalf of Human Rights Alert - NGO, were incorporated into UN Human Rights Council Periodic Reports regarding the US or Israel (2010, 2013, 2015, 2018). His research has been presented and published in international academic conferences, including Data Mining (2010), Criminology (2012), E-government (2015, 2017), and were also cited in a textbook on "Machine Learning".
Online updated version: http://www.scribd.com/doc/46421113/

Back