Money-laundering charge in Peru could hold up Dan Cohen's extradition

The troubles of Dan Cohen have just begun. On top of the fraud indictment issued against him in Israel, Cohen is facing criminal investigation for money laundering in Peru. The former Israeli district court judge is in Peru and facing extradition to Israel. Peru's general prosecutor has frozen a $3.9 million bank account belonging to Cohen and his wife.

A gag order on Cohen's indictment was lifted a few months ago. Cohen is charged with accepting bribes, fraud and breach of trust. He allegedly pocketed some $2.8 million and more than a million euro for exerting his influence on the Israel Electric Corporation on behalf of Siemens and Rogozin Industries, on three separate occasions. Cohen also faces obstruction of justice charges in the wake of his flight to Peru. He has refused to appear for questioning.

According to one of the charges, Cohen influenced the Electric Corp. board of directors to buy 400 dunams of land owned by Rogozin and located north of the Eshkol power station in Ashdod, for a premium price, to the benefit of Rogozin Industries. The property was sold for $62.5 million and Cohen allegedly received about $2 million for his services. The money was paid to a company in his ownership and control.

The Justice Ministry's international department is conducting what has become a lengthy extradition proceedings against Cohen, who is currently in jail in Peru.

Cohen is being tried in absentia in Israel. The trial began in January after the former chief executive of Siemens Israel, Oren Aharonson, agreed to testify for the prosecution.

Paradoxically, the investigation of Cohen in Peru could work in his favor: A trial there would further delay his extradition to Israel.

A source who is close to the investigation clarified that the allegations of money laundering in Peru concern the transfer of funds within Peru, and not to Israel or between any other countries. "A large amount of money is involved," the source added. A local attorney in Peru is representing Cohen in the legal proceedings there, as well as in his appeal of his extradition to Israel.

Speaking on behalf of the international department of the Justice Ministry, a spokesman said that the extradition proceedings against Cohen are in an advanced stage, and all of the necessary documents have been submitted to the Peruvian authorities. The spokesman also confirmed that an internal investigation is being conducted by local authorities there, concerning substantial sums of money that he maintains in Peru.

Attorneys representing Cohen in Israel say they cannot comment at this time about matters pertaining to Cohen's extradition.