Israeli regulation enforcement businesses could not set up a link between the R95 million they froze in the financial institution accounts of fugitive attorneys Ronald and Darren Bobroff in 2017 and the cash the duo stole in South Africa by overcharging street accident victims.
The Israelis could, due to this fact, not help the National Prosecuting Authority (NPA’s) Asset Forfeiture Unit (AFU) in recovering the cash, however proceeded to institute civil and felony proceedings in opposition to Darren Bobroff associated to cash laundering.
These proceedings had been later terminated after the events (Israel and Darren Bobroff) settled with out proactively informing or consulting the NPA, which noticed the State of Israel appropriating round R70 million of the funds and permitting the Bobroffs to retain the steadiness of about R25 million.
The Israeli’s incapability to draw a link is regardless of the Supreme Court of Appeal (SCA) ruling in May final 12 months that the cash the Israelis froze was the proceeds of crime and should be forfeited to the state.
These developments are revealed in a letter the Israelis despatched to the South African Department of Justice (DOJ) in April 2021.
The letter, signed by a senior deputy to the State Attorney of the State of Israel, Yael Bitton, additionally knowledgeable the DOJ of the settlement settlement.
Moneyweb obtained a duplicate of the letter from the NPA after making use of for it in phrases of the Promotion of Access to Information Act (Paia).
Interestingly, the Department of Justice refused us a similar PAIA application, stating that the document “would reveal information supplied in confidence by or on behalf of another state.”
South African authorities have additionally escalated the case to the DOJ and the Department of International Relations and Cooperation (Dirco) on the instruction of Minister of Justice Ronald Lamola.
Background
The case dates again to March 2017, when Israeli authorities seized R103 million in the Bobroffs’ financial institution accounts in that nation.
The South African Supreme Court of Appeal later dominated that R95 million of this cash was the proceeds of crime and ought to be forfeited to South Africa.
After the seizure of the funds, the NPA requested the Israelis for help in returning the cash to South Africa.
The Israelis then requested the NPA to present proof that the funds could be linked to the Bobroffs’ fraud and theft in South Africa.
The NPA complied and shared data with Israel and even met with Israeli representatives.
However, in the letter to the DOJ, Bitton wrote that the Israeli authorities “ultimately determined that this investigative avenue was not viable, since it was not possible to establish a link between said assets and the offences allegedly committed by Bobroff in South Africa”.
“Due to the inability to link the assets to the South African investigation, the aforementioned seized funds were at immediate risk of being released.”
Pivotal affidavit from Sars
Bitton pressured that data equipped by the NPA, and “in particular the provision of a vital affidavit from a Sars [South African Revenue Service] representative”, assisted Israeli in constructing a home felony money-laundering investigation in opposition to Darren Bobroff.
The letter additionally revealed a proposal to share the spoils with South Africa. “In recognition of the important assistance provided by the South African authorities and law enforcement in the Israeli investigation, the State of Israel proposes sharing a total of 3 million NIS (R14 million) with the Government of South Africa.”
This quantity is but to be paid, though discussions between South African and Israeli authorities are ongoing for the total R95 million to be returned.
Bobroffs’ response
Richard Spoor, the Bobroffs’ lawyer in South Africa, stated in response that the Israeli letter confirms what “we have said all along”, echoing earlier denials of wrongdoing. (Read the full response here)
Spoor was additionally essential of the Israeli conduct and the settlement settlement, which he beforehand labelled extremely opportunistic.
“The Israelis had been rescued by the settlement settlement that they entered into with (Darren) Bobroff, which, as we beforehand suggested, was entered into beneath duress, specifically the specter of arrest and extradition of Darren to Israel and the seizure of all their property and property in Australia.
The settlement was successfully extorted out of them. The letter confirms this. They had no case in opposition to Bobroff however had been in a position to extort cash from them, by way of the abuse of state energy.”
He stated: “The Bobroffs knew that the Israelis had no foundation to imagine that the moneys in the Israeli financial institution accounts had been the proceeds of any criminality and that the SA request was bunkum. They additionally knew that the Israelis knew that there existed no legitimate authorized grounds to confiscate the monies. That stated the Israeli course of is secret they usually (the Bobroffs) had been not allowed to see the proof that the Israelis relied upon.
“They were also threatened with the freezing of their assets and the arrest and detention and deportation of Darren to Israel where he could be held for months. They had little choice but to agree to the Israeli Ministry’s extortionate demands.”
He added that the “Bobroffs agreed to let the Israeli authorities take their money in exchange for their freedom and the release of a small part of their assets.” He famous that the Bobroffs had initiated proceedings in Israel to take the settlement on overview.
Spoor additionally acknowledged that the cash was moved to Israel illegally. “Some moneys had been transferred with out permission of the SA Reserve Bank.
The Reserve Bank limits the sum of money South Africans can transfer offshore. That offshore holding has since been declared, and a penalty was imposed by the tax authorities.”
This fantastic stays unpaid.
Moneyweb despatched questions to Bitton, however she did not reply.
NPA’s response
The NPA appears unfazed by these developments.
Bulelwa Makeke, NPA head of communications, stated in response to questions that Israel’s conclusion that no link could be drawn between the funds seized in Israel and the alleged transgressions in South Africa has no bearing on the NPA’s felony investigation and the extradition utility.
Makeke added that the extradition utility is “pending the finalisation of the investigations.”
Advocate Suna de Villiers from the AFU stated the actions of the Israeli authorities do not have an effect on its actions to recuperate the cash.
“Our case is not linked to the felony investigation. In our utility, we’d like to persuade a courtroom that an individual obtained the proceeds of crime and it’s not depending on a felony conviction.
“We said the money in Israel was the proceeds of crime, and we will continue to pursue the seizure of the funds.”
De Villiers additionally acknowledged that SA’s minister of justice phoned her not too long ago and requested that the case be escalated to the DOJ and Dirco. “So, the case is being dealt with at a very high level.”
Seizure of properties and cash in Australian financial institution accounts
An fascinating facet of the settlement settlement was that the Israelis requested the Australian authorities to freeze property the Bobroff owned in Australia.
The Australians subsequently issued a summons in which they wished to seize the 5 Bobroff-owned properties and freeze three financial institution accounts.
The summons gives particulars of the properties. A deed search revealed that the Bobroffs offered two properties in September final 12 months to an organization known as CJNSW PTY LTD for $0. The director and secretary of CJNSW is Cindi Jaches, Ronald’s daughter.
The household nonetheless owns the opposite three.
Listen to Moneyweb editor Ryk van Niekerk’s latest interviews with the Bobroffs’ lawyer Richard Spoor and the NPA’s Suna de Villiers:
This article initially appeared on Moneyweb and was republished with permission.
Read the unique article here.
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