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HomeBlogIsrael's Bank Hapoalim to receive $140 mln in deal with ex-officers

Israel’s Bank Hapoalim to receive $140 mln in deal with ex-officers

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The logo of Bank Hapoalim was seen at the Tel Aviv, Israel branch on November 22, 2021. The photo was taken on November 22, 2021. REUTERS / Korina Keren

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JERUSALEM, JANUARY 27 (Reuters) – Israeli Bank Hapoalim (POLI.TA) said on Thursday it had reached a $ 140 million settlement with insurers of executives and executives involved in the billion-dollar tax evasion scandal and stopped suing them.

Hapoalim, one of the two largest banks in Israel, paid the US authorities nearly $ 900 million in fines in 2020 after admitting to helping U.S. taxpayers hide more than $ 7.6 billion in about 5,500 undeclared bank accounts of Switzerland and Israel between 2002 and 2014.

Following the 2020 plea deal, in which Hapoalim’s Swiss subsidiary was also a party, the bank set up a committee headed by a retired Israeli Supreme Court judge to determine whether to sue its directors and previous issues.

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In a regulatory lawsuit in Tel Aviv on Thursday, the bank said the committee and representatives of the directors and officers agreed that workers would be paid $ 140 million in exchange for canceling “all claims and demands” against the directors, officers and insurers.

“After examining the liability of other third parties, the committee found no basis to recommend the opening of legal proceedings or other measures against them,” the bank said.

They further added that the police officers did not act out of personal motive, conflict of interest or in a conscious violation of the law.

Hapoalim announced that it would soon submit the request for conciliation to the Tel Aviv-Yafo District Court.

The bank also announced that it would pay NIS 50 million ($ 15.7 million) to settle a class action lawsuit in the matter.

Hapoalim’s main rival, Leumi (LUMI.TA), agreed in 2014 to pay $ 400 million to settle two separate investigations if it helped U.S. customers evade taxes. Mizrahi Tefahot Bank (MZTF.TA) paid $ 195 million in 2019 to regulate a five-year U.S. tax evasion investigation.

($ 1 = NIS 3.1946)

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Report by Stephen Sher; Edited by Jeffrey Heller and Jason Nili

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