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COMPLAINT FORM Public Communications Unit, Bank of Israel-Banking Regulation Tel: 1-212-200680 Fax: 02-666-9077 Email: "Attention Governor

Stanley Fischer" <miriam.segal@boi.org.il>,"Stanley Fischer" <sfischer@bankisrael.gov.il> Submitted as an attachment to the online complaint form, by fax, and by email. URGENT: Bank HaPoalim, BM, unlawfully seized about NIS 1,000,000 in customer's funds 1. 2. 3. 4. 5. 6. 7. Customer Name: Dr Joseph Zernik Contact Information: PO Box 31440, Jerusalem 91313 Email: josephzernik@humanrightsalertngo.org Financial Institution, subject of the Complaint: Bank HaPoalim, BM Bank Code: 12 Branch Number: 694 Details of the Complaint: i. I am a German, Israeli, and US citizen. ii. In a January 2, 2013 phone call, Ms Maya Amzallag, Beit HaKerem Branch Manager, denied the undersigned's access to his own funds in deposit accounts under custody of Bank HaPoalim, BM. Ms Amzallag provided no lawful foundation for such conduct, and refused to provide a written notice of the Bank's actions against the undersigned. Instead, Ms Amzallag claimed that the Bank's actions were based on previous notices, provided by the Bank, regarding its purported "New Policy", related to FATCA a law of the United States of America. [Attachment #1, also linked below] Through such conduct, the Bank effectively seized the undersigned's deposit accounts, holding about NIS 1,000,000, while forcing the undersigned to incur interest on overdraft accrued in his checking account. Such conduct has no foundation in the law of the State of Israel. iii. Prior to that, on November 16, 2012, and again on December 2, 2012, the undersigned forwarded to the Bank's Chief Internal Auditor Jacob Orbach requests to provide: The Bank's record of FATCA-related "New Policy", which was and is purported as the foundation for such conduct. Reports of interest gained in the undersigned's accounts in single total sum for each account for the calendar year 2011 (and now also for the calendar year 2012), as required pursuant to the United States Internal Revenue Service Regulations (Form 1099-Int), which the Bank purports to enact and enforce in the State of Israel. [Attachments #2,3, also linked below] iv. The Bank's response, dated December 25, 2012 [Attachment #4, also linked below] states:
We would like to refer you to what is said in our letter, dated November 4, 2012, relative to which we have nothing to add. The printouts, which were referred to you, detailing transactions and details of interest paid to you in 2011, are the Bank's acceptable records for this purpose, and they include all the information in our possession.

The Bank's December 25, 2012 response documents that: Bank HaPoalim, BM, does not have and never had any FATCA-related, lawfully adopted "New Policy", as falsely stated in its previous communications. Bank HaPoalim, BM, refuses to report to the account holder the total interest gained in customer's accounts. Bank HaPoalim, BM, never intended to comply and enforce the United States FACTA in the State of Israel (a notion that in itself is contrary to the law of the State of Israel). Instead the Bank enacted and enforces its own laws in the State of Israel.

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January 4, 2013

That conduct of Bank HaPoalim, BM, involves senior executives e.g., Jacob Orbach, Chief Internal Auditor. Allegations: Therefore, the undersigned alleges that Bank HaPoalim, BM, and its Chief Internal Auditor Jacob Orbach are engaged in various violations of the law of the State of Israel, including, but not limited to: i. Unlawful seizing of the undersigned's funds in deposit accounts: Conduct of the Bank has no basis in the law of the State of Israel. Moreover, it has no basis in the law of the United States either. The law of the United States, which the Bank purports to enact and enforce in the State of Israel, does not permit a bank to seize a customer's accounts. At most, the relevant United States law permits a bank to withhold 30% of interest gained on United States securities of the account holder. The undersigned holds no United States securities at all. ii. Unlawfully causing the undersigned to incur interest charges on his checking account. iii. Large-scale banking fraud: The Bank falsely claims to have adopted a FATCA-related "New Policy". The Bank's own response indicates that no such lawfully adopted Bank policy exists. Under such false and deliberately misleading statements, regarding the Bank's FACTA-related "New Policy", the Bank engages in unlawful, harmful conduct. iv. Entrapment: The Bank extorts filing of United States Internal Revenue (IRS) tax returns by the Bank's "US Persons" customers in Israel, while refusing to provide the same customers the necessary documentation, pursuant to the same IRS Regulations. Conduct of the Bank is likely to trigger IRS audits of such individuals, who submit to the Bank's extortion and cause them additional harm. v. Refusal of the Bank to report to the customer the total interest gained in his account (no reporting at all was provided for foreign currency accounts, and regarding NIS deposits the Bank refuses to provide a single total sum of interest gained during the calendar year, as required by IRS regulations), stands contrary to any notion of honest banking in the State of Israel. vi. Undermining the rule of law and publicity of the law in the State of Israel: The Bank falsely claims to have established a secret, unpublished "New Policy". The Bank's customers are left at the whim of the Bank's unlawful conduct, which is arbitrary and capricious. 8. Any specific requests: i. The undersigned requests that the Banking Regulation Unit of Bank of Israel immediate take action to restore the undersigned's access to his own deposit accounts, held in custody by the Bank. ii. The undersigned requests that the Banking Regulation Unit of Bank of Israel initiate investigation of the conduct of Mr Jacob Orbach in this matter, relative to alleged violations of his lawful duties and obligations as the Bank's Chief Internal Auditor. iii. The undersigned requests that the Banking Regulation Unit of Bank of Israel accord the undersigned due process through timely notice to the complainant of due registration of instant complaint, response by the Bank on the instant complaint, and determination by Bank of Israel on instant complaint. Jerusalem, January 4, 2013 Joseph Zernik, PhD Attached:
[1] 13-01-02 Letter to Bank HaPoalim, BM, Chief Internal Auditor Jacob Orbach re: blocking of customer's accounts, failure to produce bank documents http://www.scribd.com/doc/118782435/ [2] 12-11-16 Letter to Bank HaPoalim Chief Internal Auditor Jacob Orbach Re: FATCA-related extortionist conduct request for the Bank's "new policy" s http://www.scribd.com/doc/113472942/ [3] 12-12-02 Reminder on FATCA-related request for Bank HaPoalim records from Chief Internal Auditor Jacob Orbach http://www.scribd.com/doc/115295169/ [4] 12-12-25 Bank HaPoalim response re FACTA-related new policy, interest gained http://www.scribd.com/doc/118918634/

TO: CC:

CC:

Mr Jacob Orbach, Chief Internal Auditor, Member of the Board of Management BANK HAPOALIM, BM, Israel Email: <jacob.orbach@mailpoalim.co.il>; Fax: 03-607-3101, 03-567-3764; Ms Maya Mazallag, Beit HaKerem Branch Manager BANK HAPOALIM, BM, Israel maya.amzallag@mailpoalim.co.il, shalom.barashi@mailpoalim.co.il , maya.shulyatsky@mailpoalim.co.il , david.zegen@mailpoalim.co.il , drora.bregman@mailpoalim.co.il , mordechai.assouline@mailpoalim.co.il , efrat.dahan@mailpoalim.co.il Mr Stanley Fischer, Governor BANK OF ISRAEL Email: "Attention Governor Stanley Fischer" <miriam.segal@boi.org.il>,"Stanley Fischer" <sfischer@bankisrael.gov.il>, Fax: 02-666-9077

RE: Unlawful blocking of customer's access to his own funds, and Reminder "FATCA"-related request for bank records YOUR IMMEDIATE ATTENTION IS REQUIRED!
TO MR JACOB ORBACH, Chief Internal Auditor and Member of the Board of Management, BANK HAPOALIM, BM, Israel :

a) Unlawful blocking of access to customer's funds


In a phone call today, Ms Maya Amzallag, Beit HaKerem Branch Manager, Ms Amzallag denied the undersigned's access to his own funds under custody of Bank HaPoalim, BM. Ms Amzallag provided no lawful foundation for such conduct, and refused to provide notice of the same in writing. Your immediate attention is required to restore the undersigned's full access to his own funds.

b) Reminder - "FATCA"-related request for bank records


Your office has been repeatedly requested to produce the following bank records: i. Undated Bank HaPoalim, BM, "New Policy", related to "FATCA" (a United States act, which the Bank purports to enact, adjudicate, and enforce in the State of Israel), which is the purported basis for such conduct. ii. Pursuant to the same purported "New Policy" and pursuant to related United States Internal Revenue Regulations, Form 1099- Int: Reporting by the Bank to the undersigned account holder total interest gained in single a sum for each calendar year for each account, regardless of currency, for the year 2011 (long overdue), and for the year 2012 (now due). No response has been received from your office on such requests to this date. Your immediate attention to this matter would be appreciated. Jerusalem, January 2, 2013,

_________________ Joseph Zernik, PhD PO Box 31440, Jerusalem 91313 ATTACHED: United States Internal Revenue Service, Form 1099-Int LINKS:
12-12-03 Reminder on FATCA-related request for Bank HaPoalim records from Chief Internal Auditor Jacob Orbach http://www.scribd.com/doc/115295169/

TO: CC:

Mr Jacob Orbach, Chief Internal Auditor, Member of the Board of Management BANK HAPOALIM, BM, Israel Email: <jacob.orbach@mailpoalim.co.il>; Fax: 03-607-3101, 03-567-3764; Mr Stanley Fischer, Governor BANK OF ISRAEL Email: Ms Miriam Segal, Bank of Israel-Banking Regulation <miriam.segal@boi.org.il>, Fax: 02-666-9077

RE: FATCA-related on-going extortionist conduct by Bank HaPoalim, BM request for Bank records Your letter, dated November 4, 2012, Ref: 1-6098055244 My letters of September 5, 12, 14, 2012 [i]
RESPONSE WITHIN 14 DAYS IS KINDLY REQUESTED TO MR JACOB ORBACH, Chief Internal Auditor, and Member of the Board of Management, Bank HaPoalim, BM: The Undersigned thanks Chief Internal Auditor Orbach for the November 4, 2012 response by Bank HaPoalim, BM, ("the Bank") and the appended customer agreements, referenced above and linked below. The Bank's response, while helpful, raises serious concerns: 1. Repeat request for valid legal communications by the Bank The signers of the Bank's November 4, 2012 letter, referenced above, Ella Gutman and David Zagan, were not identified by their authority in Bank HaPoalim, BM, regardless of repeated requests for valid signatures on communications of legal nature by the Bank. Individuals, who issue false and deliberately misleading records of legal nature on behalf of financial institutions, unsigned, or signed with no authority and/or qualifications, have come to be known in recent years as "Robo-signers". Such conduct has been recognized as central to the criminality that underlies the current financial crisis in the United States. Therefore, the Undersigned again asks that legal communications on behalf of the Bank be signed by authorized officers of the Bank, identified as such. 2. Repeat request for single-sum statements of the interest gained in each of the Undersigned's accounts in the calendar year 2011. Contrary to what is stated in the Bank's November 4, 2012 letter, referenced above, the Undersigned has not received to this date from the Bank single-sun statements of the interest gained in 2011 in each of the Undersigned's accounts, as required by United States IRS regulations, which the Bank fabricates enforcement of. The Bank' branch produced to the Undersigned a 17-page document, covering only some of the accounts. Such document is invalid and of no use for the purpose of United States IRS filing. Absent valid reporting by the Bank to the account holder, there is no way that the account holder could comply with the Bank's demands, relative to filing United States IRS returns. For the Bank's convenience, enclosed is a sample of United States IRS Form 1099-Int (2012). The Bank is required to issue such statement for each account, providing a singlesum (Box 1) for the interest gained in the respective account during the statement period.

Therefore, the Bank is again asked to provide single-sum statements of the interest gained in each of the Undersigned's accounts (both NIS and other currencies), from January 1, 2011 to December 31, 2011. 3. Request for a copy of the Bank's undated FATCA-related "new policy" Review of the Bank's November 4, 2012 response, the customer agreements, and the Bank's unsigned June 27, 2012 FATCA Demand Letter shows that the legal fabrication in this case is based on the claim of existence of an undated FATCA-related "new policy" of the Bank. Therefore, the Undersigned requests a valid copy of the Bank's record, which is the Bank's undated FATCA-related "new policy", referenced in the Bank's June 27, 2012 FATCA Demand Letter, and valid records of the manner in which the "new policy" was adopted by the Bank (e.g., minutes/protocol of relevant meeting). 4. Request for the Chief Internal Auditor's opinion regarding validity and legality of the "new policy". In the August 25, 2012 Complaint, filed with Bank of Israel, the Undersigned claims that the establishment of such "new policy" by the Bank amounts to extortion and organized, corporate, white-collar crime. Therefore, the Undersigned requests that the Chief Internal Auditor also provide his opinion regarding validity of the manner in which the undated "new policy" was adopted by the Bank, and legality of the undated "new policy" itself. Jerusalem, November 16, 2012,

_________________ Joseph Zernik, PhD ATTACHED: 1. United States Internal Revenue Service, Form 1099-Int LINKS:
i

[1] 12-08-25 Dr Zernik's complaint, filed with Israeli banking regulation against Bank HaPoalim - for attempting to extort compliance with US IRS regulations in Jerusalem http://www.scribd.com/doc/103922991/ [2] 12-09-05 Addendum to Complaint, filed with Bank of Israel against Bank HaPoalim, and a Demand, filed with Bank HaPoalim, for a Written Statement of Interest Gained in Client's Accounts in 2011 http://www.scribd.com/doc/104993753/ [3] 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/ [4] 12-09-13 More Evidence of Fraud and Extortion by BANK HAPOALIM, BM, Israel, Subsidiaries and or Affiliates http://www.scribd.com/doc/105825087/ [5] 12-09-14 Demand for Action by Bank HaPoalim, BM, Chief Internal Auditor Jacob Orbach, re: FATCA related extortionist conduct by the Bank http://www.scribd.com/doc/113463251/ [6] 12-11-04 Bank HaPoalim, BM, response re: FACTCA demands and threats with Appendices A. Demand and threat letter, B. customer agreement http://www.scribd.com/doc/113460859/

TO: CC:

CC:

Mr Jacob Orbach, Chief Internal Auditor, Member of the Board of Management BANK HAPOALIM, BM, Israel Email: <jacob.orbach@mailpoalim.co.il>; Fax: 03-607-3101, 03-567-3764; Ms Maya Mazallag, Beit HaKerem Branch Manager BANK HAPOALIM, BM, Israel maya.amzallag@mailpoalim.co.il, shalom.barashi@mailpoalim.co.il , maya.shulyatsky@mailpoalim.co.il , david.zegen@mailpoalim.co.il , drora.bregman@mailpoalim.co.il , mordechai.assouline@mailpoalim.co.il , efrat.dahan@mailpoalim.co.il Mr Stanley Fischer, Governor BANK OF ISRAEL Email: "Attention Governor Stanley Fischer" <miriam.segal@boi.org.il>,"Stanley Fischer" <sfischer@bankisrael.gov.il>, Fax: 02-666-9077

RE: Unlawful blocking of customer's access to his own funds, and Reminder "FATCA"-related request for bank records YOUR IMMEDIATE ATTENTION IS REQUIRED!
TO MR JACOB ORBACH, Chief Internal Auditor and Member of the Board of Management, BANK HAPOALIM, BM, Israel :

a) Unlawful blocking of access to customer's funds


In a phone call today, Ms Maya Amzallag, Beit HaKerem Branch Manager, Ms Amzallag denied the undersigned's access to his own funds under custody of Bank HaPoalim, BM. Ms Amzallag provided no lawful foundation for such conduct, and refused to provide notice of the same in writing. Your immediate attention is required to restore the undersigned's full access to his own funds.

b) Reminder - "FATCA"-related request for bank records


Your office has been repeatedly requested to produce the following bank records: i. Undated Bank HaPoalim, BM, "New Policy", related to "FATCA" (a United States act, which the Bank purports to enact, adjudicate, and enforce in the State of Israel), which is the purported basis for such conduct. ii. Pursuant to the same purported "New Policy" and pursuant to related United States Internal Revenue Regulations, Form 1099- Int: Reporting by the Bank to the undersigned account holder total interest gained in single a sum for each calendar year for each account, regardless of currency, for the year 2011 (long overdue), and for the year 2012 (now due). No response has been received from your office on such requests to this date. Your immediate attention to this matter would be appreciated. Jerusalem, January 2, 2013,

_________________ Joseph Zernik, PhD PO Box 31440, Jerusalem 91313 ATTACHED: United States Internal Revenue Service, Form 1099-Int LINKS:
12-12-03 Reminder on FATCA-related request for Bank HaPoalim records from Chief Internal Auditor Jacob Orbach http://www.scribd.com/doc/115295169/

Tel: 03-5676605

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