Finally, The US Is Busting Israeli Banks

Even after the U.S. government cracked down on secret bank accounts in Switzerland, Bank Leumi never stopped – in fact, it went into overdrive to attract new customers, according to a statement by New York regulators after a deal was reached.

I delivered Bank Leumi to the feds on a silver platter 25 years ago, so there appears to be no plausible excuse for the delay in taking action against them.

A lot of Bank Leumi's customers, particularly in the New York Jewish community, are crapping in their pants waiting for the next shoe to drop, but they should have been worried 25 years ago. Anyone who used Bank Leumi's competitors in Israel to evade taxes should be crapping, too. Bank Leumi is required to help the Justice Department investigate other Israeli banks.

CNBC Editor's Note: Bank Leumi had no comment on this op-ed but referred to its official statement following the NYDFS findings: "The Leumi Group has reached an agreement with the U.S. Department of Justice and New York State Department of Financial Services. As has been previously disclosed, we have been cooperating with the authorities and are pleased to resolve this matter." A Justice Department spokesperson said, "We follow the facts and evidence wherever it leads us and take appropriate action. I cannot speak for decisions made more than 25 years ago, but what I can say is that this Justice Department has made it a priority to hold banks and other financial institutions responsible for their criminal conduct." The FBI declined to comment and said it had nothing to add. The SEC did not respond with a comment.

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I am a convicted felon and a former CPA. As the CFO of Crazy Eddie, I helped mastermind one of the largest securities frauds ...

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Duke Peters 5 years ago Member's comment

Why do you suppose the Feds chose not to pursue the bank after you "served them up on a platter." Surely between the evidence your provided and your testimony, they could have secured numerous convictions.

Clark Winslow 5 years ago Member's comment

They probably wanted to avoid an international incident with its only ally in the middle east.

Ayelet Wolf 5 years ago Member's comment

Wow, I am shocked to read this.