Court: Hirchson gave land to sons to keep it from creditors
Hirchson was convicted three years ago of embezzling millions from the National Workers Labor Federation, which he chaired.
Former Finance Minister Abraham Hirchson transferred land to his sons in an attempt to keep it out of his creditors' hands, the Tel Aviv District Court ruled last week.
Hirchson was convicted three years ago of embezzling millions from the National Workers Labor Federation, which he chaired. The union later sued him for NIS 190 million and had liens placed on his assets.
Around the time of the conviction, Hirchson gifted his three sons 1.2 dunams of land in Ramat Gan's expensive Tel Hashomer neighborhood. But Judge Haim Tobi ruled on Thursday that the gift was actually a fictitious asset transfer designed to keep assets away from his creditors. The sons did not actually possess the rights to the property, he found, ruling that the union could take possession of it.
The land is located in Tel Hashomer's so-called "big triangle" complex. The union placed a lien on the land before Hirchson could finish registering the land as his sons', but after he had already placed a notice in the land registry (tabu ) that the land was theirs. The sons - Ofer, Alroey and Barak - petitioned the court, asking it to rule that the land was theirs. In September of 2008, they and their father signed declarations stating that they had been gifted the land. The transaction was reported to the Tax Authority in January 2009, but no one ever paid purchase tax and the deed was never transferred to the sons. In October 2009, a year after the declarations, the notice appeared in the land registry.
Hirchson was indicted in June 2008 and convicted in 2009 of theft. He was sentenced to five years plus four months in jail. The union filed its NIS 190 million suit against him that October.