Police question Gaydamak, billionaire charges 'persecution'

Detectives of the police International Crimes Investigation unit Monday questioned billionaire Arkadi Gaydamak over suspicions of money laundering and fraud in connections with a 2000 transfer of nearly half a million shekels.

Gaydamak severely criticized the investigation, saying that judges and police were conducting "personal and political persecution" of the Russian-born businessman, who recently formed a new Knesset faction with three legislators who broke away from the Pensioners party.

"They don't want me to enter politics. I am fighting for justice in Israel," he said, in a reference to the name of his new party, Social Justice.

Last month, Israeli authorities asked Luxembourg for assistance in probing suspicions that Gaydamak had engaged in fraud and money laundering with the help of senior Bank Hapoalim officials.

According to the request, Gaydamak transferred NIS 450 million out of the country in 2000, in a transaction which was not reported to the Bank of Israel by Bank Hapoalim, the bank which carried out the transfer. The law requires that such transfers be reported to the central bank.

Police suspect that Bank Hapoalim officials helped Gaydamak transfer the funds, a suspicion based on the findings of a Bank of Israel investigation.