Israel Police last night arrested Emblaze Ltd. (LSE: BLZ) founder Eli Reifman on suspicion of forging documents and fraud. He will be brought before the Tel Aviv Magistrates Court today for remand.
The Tel Aviv District Police Fraud Unit suspects Reifman of obtaining a $6 million loan from two foreign companies, one of which is Winton Capital Holdings Ltd., a hedge fund registered in the Cayman Islands. The police suspect that Reifman gave the lenders forged documents from a British bank, which stated that he owned nine million shares in Emblaze. These documents were used as collateral for the loan.
Reifman recently served 50 days in jail for contempt of court, after refusing to comply with an order by Tel Aviv District Court Judge Varda Alshech to hand over all his assets, including his Emblaze shares, to the assets' special administrator, Adv. Eitan Erez.
Reifman was released from jail last month to arrange the transfer of the shares, but he has not done so.
Last week, Alshech gave Reifman a "last chance to change his ways and conduct", or else she would send him back to jail.
Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2009
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