“IDF Radio" (Galei Zahal) reports that the Tel Aviv District Court today dismissed the request of Emblaze Ltd. (LSE: BLZ) founder to get out of jail. The court extended his remand until Sunday for fear that he would try to obstruct justice.
The police arrested Reifman on Monday on suspicion of forging documents and aggravated fraud. The police suspect that he $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.
On Tuesday, the Tel Aviv Magistrates Court extended Reifman's remand for six days. Judge Gilya Ravid said, "There is no dispute that there are suspicions connecting Reifman to the acts attributed to him, and there is justification to allow the police to complete the investigation."
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.
Published by Globes [online], Israel business news - www.globes-online.com - on December 24, 2009
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