An attempt by the NGO Larger Than Life to prevent the withdrawal of donations from its accounts at Bank Leumi USA has failed after the bank said an Israeli court had no jurisdiction to issue orders against it.
Tel Aviv District Court Judge Yehuda Zaft issued a court order against Larger Than Life’s deposed chairman Zion Aboutbul and against Bank Leumi USA to prevent the withdrawal of donations from the NGO’s account at the bank.
A majority of Larger Than Life’s board deposed Aboutbul after an investigator appointed by board found that “Aboutbul did as he pleased with donations collected in Israel and the US intended for the welfare of children suffering from cancer.”
After the Judge Yehuda Zaft issued a court order, Larger Than Life asked Bank Leumi USA to honor it. The bank said that the NGO needed an order from the New York Supreme Court, and that an Israeli court lacked jurisdiction over a New York bank.
Bank Leumi USA is registered as a New York banking corporation, although it is a fully owned subsidiary of Bank Leumi (TASE: LUMI).
Published by Globes [online], Israel business news - www.globes.co.il - on January 1, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006