Court Orders Return of NIS 1.8 Million Misused by Charity Officials

A Haifa District Court judge has ordered the return of NIS 1.8 million that was improperly spent by the leadership of two charitable associations, "Keren LeChaim" and "Keren LeChaim for Children and Youth." The funds originated from a donation intended for cancer patients and were allegedly diverted for personal gain and unspecified purposes.

Judge Ron Sokol ruled that the former chairwoman and CEO of "Keren LeChaim," attorney Galit Shemesh-Fauker, along with the chairman of the "Keren LeChaim for Children and Youth," Adi Fauker (Shemesh-Fauker's husband), and other committee members, must return the full amount. The ruling stems from severe deficiencies found in the old association between 2016 and 2018, including suspected illegal transfers to Shemesh-Fauker's private account and concerns about profit distribution.

Despite promises to rectify issues, the association continued to spend hundreds of thousands of shekels, including rent payments to Shemesh-Fauker, and even falsified an "appropriate management" certificate to seek government aid in 2022. The new association was established in 2019 by the same individuals, which the registrar of associations suspected was an attempt to circumvent restrictions on the old one.

In 2019, the old association agreed to receive NIS 1.9 million from the estate of Helen Hatav, designated for programs supporting teenagers with cancer. However, Judge Sokol found that these funds were transferred from the old to the new association without court approval, allegedly to evade oversight. This transfer was facilitated by a forged court document submitted to the bank.

The court determined that the new association used the donation for purposes other than those agreed upon, with insufficient documentation for expenditures like hostel renovations and equipment purchases. The association claimed NIS 1 million for renovations but only recorded NIS 41,000 in its reports. Furthermore, the location of the hostel remained unknown, as Shemesh-Fauker refused access.

Significant sums were also paid as salaries to Shemesh-Fauker and another employee, Miriam Assiao, without court approval or clear justification for their roles. Additionally, NIS 110,000 was paid as rent for an office space within Shemesh-Fauker's own office. The judge also noted that NIS 150,000 was paid to a company owned by the father-in-law of the estate manager, Sharon Yanco, suspected to be an illicit benefit for Yanco.

Judge Sokol concluded that the transfer of funds and the change in their intended use were designed to avoid scrutiny and allow the respondents to manage the donations without limitation. While acknowledging the respondents' past positive intentions to help the needy, he stated they exploited the donation for personal gain, particularly Shemesh-Fauker, who was the driving force behind the associations. This was enabled by the committee members' improper conduct and disregard for legal obligations.