Israeli Court Orders Charity Leaders to Repay $500,000 Misappropriated from Cancer Patients
Translated & summarized from Cursorinfo by baba
Former leaders of two Israeli charities, "Keren Le'Chaim" and "Keren Le'Chaim Le'Yeladim Ve'Noar," have been ordered by the Haifa District Court to repay 1.85 million shekels. The funds, an inheritance donation meant for children with cancer, were allegedly diverted through forgery and mismanagement. General director Galit Shemesh and board members are jointly responsible for the repayment, which includes personal liabilities for Shemesh. The organizations were liquidated in 2024 due to ignored oversight demands.
The story in 7 lines · by baba
- Former charity leaders must repay 1.85 million shekels of funds meant for sick children.
- The Haifa District Court ruled against "Keren Le'Chaim" and "Keren Le'Chaim Le'Yeladim Ve'Noar" leadership.
- General director Galit Shemesh and board members are jointly liable for the misappropriated funds.
- The money was an inheritance donation intended for children with cancer.
- The diversion involved forgery and circumventing oversight from the Ministry of Justice.
- The organizations were forcibly liquidated in 2024 after failing to comply with demands.
- Galit Shemesh faces personal liability for salary and housing expenses paid from the funds.
Former leaders of two Israeli charitable organizations have been ordered by the Haifa District Court to repay over 1.85 million shekels (approximately $500,000) that were misappropriated from a donation intended for children with cancer. The ruling mandates that Galit Shemesh, the former general director, and board members of "Keren Le'Chaim" (the "Life Fund") and "Keren Le'Chaim Le'Yeladim Ve'Noar" (the "Life Fund for Children and Youth") must jointly return the funds.
The case centers on a significant inheritance donation from the late Helen Khatav, approved by a court in 2019, to aid children and teenagers with oncology diagnoses. Instead of reaching the intended beneficiaries, the funds were illegally transferred to the second organization. Investigations revealed that the leadership established the new entity specifically to circumvent oversight from the Ministry of Justice's registrar.
This diversion involved extensive document forgery to deceive banks and courts, with fictitious reports submitted to authorities. The charitable funds were allegedly squandered on undocumented repairs for a shelter for troubled girls and illegal commissions paid to the estate administrator's relative. Additionally, Shemesh reportedly received salary and housing rental payments from the funds, creating a conflict of interest.
The judge emphasized that voluntary board positions do not absolve members of their duty to strictly control budgets, and that blind trust in leadership led to severe legal violations. Both organizations were forcibly liquidated in 2024 after the leadership ignored the registrar's demands to rectify deficiencies.
Shemesh is personally liable for 180,390 shekels in salary and 112,110 shekels for housing rental, which will be part of the total debt. The defendants are also required to cover 20,000 shekels in legal costs.
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