The first indictment involves ordering 1,501 17-inch computer monitors at a price of $191 each, from Taiwanese supplier Regent. There is no dispute that the party who ordered the goods, the subject of this indictment, is Haim Buchris. He was in bankruptcy proceedings at the time, and had no means to finance the transaction. Buchris himself did not provide any collateral against the opening of the letter of credit by defendant 1, and according to his version, he should have paid the expenses of opening the letter of credit for the goods, only after the goods were sold to customers in Israel.
The letter of credit in favor of the supplier, in the sum of $286,150, was opened on February 10, 1999 at Bank Leumi and included a clause stating that it was not operational, and that it would become so only after a telegram was received from the opening bank, confirming that the letter of credit had become operational. In addition, the letter of credit included reservations and additional conditions. According to the details in the letter of credit, the bill of lading must be prepared in accordance with the Contel Ordinance and notified to M.R.L.D. and the Schloss company, where, according to the prosecution, there were three straw companies, which were used by defendant 1 for the purpose of carrying out the fraudulent acts.
On March 17, 1999, even before the letter of credit became operational, the first container arrived in Israel containing some of the computer displays that appeared in the order. Later, four more containers arrived, including the rest of the goods included in the order. There is no dispute that the computer monitors, in all of the aforementioned shipments, were released and offered for sale, and contrary to the argument of counsel for defendant 1, there is no doubt in my opinion that the consideration, in whole or in part, was not paid to the supplier. This is clearly evident from various correspondences, in which the supplier, or the bank on its behalf, demand that the letter of credit be honored and that the reservations be removed, and even that high discount rates are proposed, in order to save some of the promised consideration.