Former Postal Bank Branch Manager and Bank Ordered to Pay Half a Million Shekels for Unauthorized Withdrawals

An Israeli court has ruled that the former branch manager of Bank HaDoar and the bank itself must compensate a former customer nearly 500,000 shekels for unauthorized withdrawals from his account. The customer, who was residing in France at the time, filed a civil lawsuit in 2018 after the branch manager withdrew funds without his consent. The court found that the manager failed to prove the withdrawals were authorized or intended for representatives of the customer, ruling the actions exceeded bank procedures.

Although the branch manager admitted to withdrawing money beyond authorized limits, he claimed the funds were handed over to people acting on the customer’s behalf and that he had a power of attorney. The customer, represented by attorneys Ronen Naoi and Daniel Elimelech Azuz, denied granting any such permission. Despite a prior criminal case where the manager was not convicted of theft but only of procedural violations and breach of trust, the civil court determined the manager forged the customer’s signatures on withdrawal slips and ordered full repayment.

Bank HaDoar argued the claim was unfounded, citing evidence from the criminal case that the withdrawals were made at the customer’s request and that the customer had authorized the manager. The bank also claimed the customer’s police testimony was inconsistent. Nevertheless, the court held the bank 85% liable due to negligent supervision and failure to verify signatures, with the manager responsible for the remaining 15%. At the time of the incident, Israel Post was state-owned; it was privatized in November 2024.

Attorney Ronen Naoi praised the detailed ruling, emphasizing the court’s full acceptance of the customer’s position and the return of all funds with interest and legal costs. The former branch manager disputes the ruling and is exploring legal options, highlighting that he was never criminally convicted of theft or unauthorized withdrawals and that the court’s civil judgment lacks sufficient evidence. Dore Finance, representing the bank, confirmed the manager was immediately dismissed and that the funds have been returned to the customer in accordance with the ruling.