Court Orders Return of $500,000 Misused Charity Funds
Translated & summarized from N12 by baba
A Haifa court has ordered the return of 1.8 million shekels ($500,000) from two charities, "Keren LeChaim" and "Keren LeChaim for Children and Youth," due to improper use of donated funds. Judge Ron Sokol found that charity leaders, including Galit Shemesh-Foker and Adi Foker, transferred funds to evade oversight and used them for unauthorized purposes, including excessive salaries and questionable payments. The ruling mandates the return of the money, citing a breach of trust and duty by the charity officials.
The story in 5 lines · by baba
- A court ordered the return of 1.8 million shekels ($500,000) from two charities for improper fund usage.
- Judge Ron Sokol found charity leaders transferred funds to evade oversight and used them for unauthorized purposes.
- Galit Shemesh-Foker and Adi Foker were among the leaders ordered to return the misused donations.
- Funds were allegedly used for excessive salaries, questionable brokerage fees, and unproven renovations.
- The court cited a breach of trust and duty by the charity officials in its ruling.
A Haifa District Court judge has ordered the return of 1.8 million shekels (approximately $500,000) that were improperly spent by the leadership of two charities, "Keren LeChaim" and "Keren LeChaim for Children and Youth." The funds originated from the estate of Helen Hatav, intended for a program supporting teenagers with cancer.
Judge Ron Sokol ruled that former chairwoman and CEO Galit Shemesh-Foker, former chairman Adi Foker, and committee members Ofer Gilor, Sharon Raz, Savit David, Michael Shamo, and Ingrida Pal must return the money. The court found that the funds were transferred from the older charity to the newer one without proper court approval, specifically to evade oversight imposed on the original charity. This transfer was facilitated by submitting a forged court document to the bank.
The court also determined that the new charity used the funds for purposes other than those agreed upon. While the charity claimed to have spent a million shekels on renovating a youth hostel, its reports only listed 41,000 shekels for this purpose. Furthermore, the location of the hostel remains unknown, as Shemesh-Foker refused access to investigators.
Significant portions of the funds were also paid out as salaries to Shemesh-Foker and another employee, Miriam Assiao, totaling 600,000 shekels, without court approval. An additional 110,000 shekels were paid as rent for an office space within Shemesh-Foker's own office. The court also noted a payment of 150,000 shekels to a company owned by the father-in-law of the estate manager, Sharon Yanco, suggesting this was an improper benefit rather than a legitimate brokerage fee.
Judge Sokol concluded that the transfer of funds and the change in their designated use were intended to avoid scrutiny and allow the respondents to manage the donations without restriction. While acknowledging the charities' past positive intentions, the court found that the leadership exploited the donations for personal gain, particularly Shemesh-Foker, who received substantial payments despite claiming to volunteer. The judge criticized the committee members for their disregard of their duties, legal requirements, and audit directives.
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