Bank Leumi Seeks Liquidation of Law Firm Tied to Former Tax Official
Bank Leumi has requested the liquidation of the law firm belonging to former tax official Shimon Cohen, who faces a major tax evasion indictment. The move follows asset freezes totaling tens of millions of shekels and outstanding debts.
Bank Leumi has initiated insolvency proceedings seeking the liquidation of the law firm owned by Shimon Cohen, a former senior Tax Authority official facing charges of tax evasion and money laundering amounting to NIS 29 million. Cohen and his controlled entities owe approximately NIS 1.2 million to Bank Leumi, secured by an apartment in Beersheba. The criminal indictment, filed last month, also targets bankrupt contractor David Appel, Cohen's accounting partner, former Tax Authority employee Orly Tal, and businessmen Zvi Shapets and Haim Salter.
Cohen, an attorney and certified public accountant specializing in international taxation and trust taxation, served for 15 years at the Tax Authority, concluding his tenure as head of professional divisions and acting professional deputy commissioner. Alongside the indictment, prosecutors secured a freeze on tens of millions of shekels in assets registered under Cohen's company, Shave Assets and Ventures, including 29 apartments on Dgania Street in Tiberias valued at NIS 29 million and an apartment in Ramat Gan worth NIS 1 million. Bank Leumi stated it had not previously pursued standard collection as the company faces massive state tax liabilities.
The indictment details five counts, notably involving contractor David Appel. In 2018, Cohen brokered a transaction where businessman Diego Marinberg sold his holdings in German commercial real estate company TLG Immobilien AG to Amir Dayan for EUR 653 million. Cohen subsequently established Rilon, receiving a EUR 5.6 million brokerage fee (1% of the deal) and an additional EUR 2.8 million for legal services from Marinberg. According to the prosecution, Cohen failed to report these revenues totaling roughly EUR 8.4 million.
Appel, who was declared bankrupt at the time, approached Cohen demanding a share of the funds while attempting to bypass mandatory disclosure to the receiver. The indictment alleges that Cohen and Appel drafted false loan agreements between Cohen and Appel's sister, Dalia Appel, and son, Eran Appel, amounting to NIS 3.5 million to disguise the transfer of funds to David Appel. In response, Cohen's defense attorneys, Ravit Tzemach and Amit Nir, dismissed the indictment as absurd and baseless.
