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Israeli Newspaper Ha´aretz, Internet Edition, March 5th, 2001:

Israeli businessmen suspected of ties to Peruvian money laundering scheme 

By Aryeh Dayan

Ha'aretz Correspondent


The funds deposited in Swiss branches of Israeli banks by former Peruvian spy chief Vladimoros Montesinos were bribery payments he received from Israeli businessmen as part of a deal for the sale of Russian fighter aircraft to Peru's armed forces, according to the special prosecutor appointed by the Peruvian government to investigate corruption charges against Montesinos and the country's former president, Alberto Fujimori.

In a telephone interview from his office in Lima, Dr. Jose Carlos Ugaz told Ha'aretz that, "the findings of the investigation so far indicate that Montesinos was closely connected to a group of businessmen - some Israeli and some Jews with Peruvian citizenship - who acted for him in international arms deals, from which he collected illegal commissions."

These commissions were deposited in various banks in Switzerland, including branches of Bank Leumi and the First International Bank of Israel group. Ugaz said that Swiss deposits totaled some $70 million, although he was unable to say how much of this total landed in the Swiss branches of Israeli banks.

Ugaz mentioned the names of several Israeli businessmen allegedly involved in arms deals with Montesinos. "An Israeli lawyer named Mordechai Mincher is the one who represented Montesinos at the Israeli banks in Switzerland and he is also the person upon whose recommendation the Israeli banks in Switzerland agreed to open these accounts," Ugaz said.

Attorney Mincher, who served as a legal adviser to the Eisenberg group during the 1970s and 1980s, responded to these charges by stating that he represents a number of clients in Peru in business related to the capital markets, but that he has not been involved in any arms deals with Peru.

"Another Israeli businessman, by the name of Roni Lerner, was the intermediary in the deal in which three MiG-29 aircraft were purchased in Russia in 1998 for the Peruvian army," Ugaz added. "The illegal commissions paid to Lerner and Montesinos under this deal were deposited in the accounts Mincher opened for Montesinos in Switzerland," the special prosecutor said.

Lerner told Ha'aretz that, "I do not have any connection to the sale of MiG aircraft to Peru. I don't know Vladimoros Montesinos and never met with him." He added that, "It was obvious that my name would come up, but it's a case of an unfortunate coincidence. I have no control over what is happening in Peru today. A witch-hunt is going on there."

The investigation is now also focusing on whether Montesinos deposited money in banks in Israel, in addition to their branches in Switzerland. "I still don't know the answer to this question," Ugaz said, "but I suspect that Montesinos indeed deposited funds in Israel." He explained that he bases this supposition on the fact that the investigation has revealed, "the very closest of ties between Montesinos and Israelis."

Former president Fujimori left Peru in November and is living in Japan, but the whereabouts of Montesinos is unknown, following his abortive attempt to win political asylum in Panama in late October.

A videotape showing Montesinos apparently offering a bribe to a Peruvian lawmaker set off the series of events that led to Fujimori's political demise. Montesinos, who exerted extensive control over Peru's military and judiciary, has been accused of ordering death squads to kill suspected leftist guerrillas.

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