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Mr Jacob Orbach, Chief Internal Auditor, Member of the Board of Management BANK HAPOALIM, BM, Israel By Email: <jacob.

orbach@mailpoalim.co.il>; Fax: 03-607-3101; CC: Mr Stanley Fisher, Governor BANK OF ISRAEL VIA: Ms Miriam Segal, Bank of Israel-Banking Regulation: <miriam.segal@boi.org.il>, and by fax: 02-666-9077 CC: BASEL ACCORD COMMITTEE By email CC: VARIOUS NATIONAL BANKS, Research Departments By email CC: VARIOUS ANALYSTS By email

TO:

Demand to cease and desist fraud and extortion by BANK HAPOALIM, BM, Israel, its subsidiaries and/or affiliates, and demand for remedial actions no later than October 1, 2012.
TO MR JACOB ORBACH, CHIEF INTERNAL AUDITOR, AND MEMBER OF THE BOARD OF MANAGEMENT: Please take notice of the Undersigned, Dr Joseph Zernik’s - Demand to cease and desist fraud and extortion by BANK HAPOALIM, BM, Israel, its subsidiaries and/or affiliates, and demand for remedial actions no later than October 1, 2012. 1. For the past couple of weeks I have been subjected to conduct by BANK HAPOALIM, BM, Israel, its subsidiaries and/or affiliates, which was alleged in a complaint, filed with BANK OF ISRAEL, as fraud and extortion. The conduct of BANK HAPOALIM, BM, Israel, its subsidiaries and/or affiliates, over the past couple of weeks was detailed in a number of communications, addressed to Mr ZION KENAN, President and Chief Executive Officer and others, and in a complaint, filed with BANK OF ISRAEL. It is detailed in the record, linked below. [1] The conduct of BANK HAPOALIM, BM, Israel, subsidiaries and/or affiliates in this matter is likely to amount to legal/banking fraud and extortion, including, but not limited to: [3] i. The deliberate issuance of fraudulent, invalid, simulated banking/legal communications stating demands and threats; ii. The deliberate transmission of legal/banking records by unauthorized personnel, and iii. Conduct that amounts to corporate “shell game” fraud. 2. Such conduct should raise concern regarding integrity of operations and stability of BANK HAPOALIM, BM, Israel, its subsidiaries and/or affiliates The conduct, detailed in the record, linked below, should raise serious concerns regarding integrity of operations, integrity of management in general and legal management in particular, and the financial stability of the corporation. Moreover, given the position of BANK HAPOALIM, BM, Israel, as the largest bank in Israel, such conduct should also raise concerns regarding banking regulation and stability of the financial system and in the State of Israel. 3. The Undersigned demands that you, in your capacity as Chief Internal Auditor, Member of the Board of Management immediately bring such conduct to an

end, and ensure that any and all my accounts are all available for normal transactions no later than October 1, 2012. Therefore, the Undersigned continues demands that you immediately put an end to such conduct, and ascertain that my accounts are available for normal transactions no later than October 1, 2012. Barcelona, Catalonia, September 14, 2012,

_________________ Joseph Zernik, PhD LINKS:
[1] 12-09-12 Dr Zernik's Notice and Demand for the issuance of valid banking/legal communication by BANK HAPOALIM, BM, Israel, its subsidiaries and/or affiliates of their demands and threats against Dr Joseph Zernik, and for response within 10 days, with fax transmission report http://www.scribd.com/doc/105706636/ [2] 12-09-13 More Evidence of Fraud and Extortion by BANK HAPOALIM, BM, Israel, Subsidiaries and or Affiliates http://www.scribd.com/doc/105825087/