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Criminal Case (Tel Aviv) 40013/05 State of Israel v. Uri Resch - part 44

September 13, 2011
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Due to difficulties in financing the import transaction, Haim Buchris approached defendant 1, and the latter agreed to mediate between him and parties familiar to him, who were supposed to finance the transaction.  For this purpose, Defendant 1 turned to Calderon, and the condition set by Calderon for the execution of the financing to Bukharis was that he would be "protected from a situation in which he would be required to pay money to the supplier and would not receive money against Bukharis".  Defendant 1 does not deny that he assisted in drafting the application to open the letter of credit, in light  of the "enormous complexity of the financial and commercial situation", and the need to find creative and complex solutions and mechanisms.  Defendant 1's interest was solely in receiving a brokerage fee as part of the commission paid to the financier, while part of the money transferred to Calderon, as payment for the commission, reached defendant 1 as a brokerage fee.  Contrary to the prosecution's claim, there are no deliberately obstructive clauses in the letter of credit that can serve as a basis for the fraud claim that the accuser attributes to defendant 1.  Thus, for example, there is no substance to the claim that the letter of credit includes  a non-operative clause, in order to substantiate the accuser's claim that the intention was to evade payment of the consideration for the goods.  This clause is common in documentary letters of credit all over the world, and as far as Buchris is concerned, he could have presented the letter of credit to the customer and the supplier and moved the transaction forward, while receiving an advance from the client, Tel Aviv University.  On the other hand, there would have been no obligation to pay Calderon, since the letter of credit is not yet operational.  This is a legal, legitimate, acceptable and reasonable solution based on professional, commercial and financial considerations, and this does not imply any fraudulent intent.

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