Deadline up for arbitration in Sara Netanyahu’s $100,000 fraud case

The period for criminal arbitration in a fraud case against Prime Minister Benjamin Netanyahu’s wife, Sara Netanyahu, is set to expire Tuesday, with prosecutors trying to reach a deal for her to confess to misuse of state funds and avoid seeing out a full trial, which would take place during an election cycle.

Sara Netanyahu — along with Ezra Saidoff, a former deputy director general of the prime minister’s official residence — faces charges of fraud and breach of trust for allegedly overspending roughly NIS 360,000 ($100,000) on private meals at the residence, while there was a full-time chef on staff.

The Netanyahus have denied any wrongdoing, and say they are the victims of a political witch hunt driven by a hostile media.

The arbitration has been conducted by judge Mordechai Kaduri, vice president of the Jerusalem Magistrate’s Court, after he asked both sides for approval to try and reach a deal.

The prosecution was expected to oppose any deal that doesn’t include at least a partial confession by Netanyahu and a conviction, Channel 10 news reported at the start of the arbitration process last month.

If the arbitration fails, the criminal trial will continue immediately and therefore take place as the prime minister campaigns for reelection in the April 9 national poll, which his coalition announced on Monday.

Sara Netanyahu appeared at the Jerusalem Magistrate’s Court in November for the opening of her trial, sitting in the courtroom for the first time as a criminal defendant.

Prosecutors accuse Netanyahu and Saidoff of misusing state funds to pay for the catered meals by falsely declaring there were no cooks available at the premier’s official residence.

Under state regulations, cooks at the Prime Minister’s Residence are supposed to supply prime ministers and their immediate families with daily meals. Where cooks are not employed, the prime minister’s family is permitted to order catered meals, up to a cost of NIS 200 per person plus tax. The state is also authorized to foot the bill for private guests of the prime minister and his or her spouse so long as it is not for a social or family event involving more than 20 people.

From 2010 to 2013, Sara Netanyahu, her family and guests “fraudulently [received] from the state hundreds of prepared meals,” the indictment read.

According to the charge sheet, the meals were ordered from a variety of well-known Jerusalem businesses, including an Italian restaurant, a Middle Eastern grill joint and a sushi establishment.

The charges against Saidoff are more serious, as he is also accused of illicitly hiring chefs and servers for private meals at the Netanyahu home and falsifying invoices for such activities in order to get them approved.

Sara Netanyahu has long faced allegations of extravagant living and abusive behavior. In 2016, a court ruled she mistreated an employee and awarded the man $42,000 in damages. Other former employees have accused her of mistreatment, and of excessive spending and charging the state for her private, expensive tastes, allegations the Netanyahus have vehemently denied.

Earlier this month she was questioned by police over suspicions she lied to the state comptroller regarding the employment of a former aide-turned-state witness.

Separately from Sara Netanyahu’s own legal troubles, the decision to call early elections also comes as Attorney General Mandelblit is set to begin reviewing materials to decide on possible charges against Benjamin Netanyahu this week.

State Prosecutor Shai Nitzan said Wednesday he was wrapping up recommendations on three cases against Netanyahu for Mandelblit, which reportedly include recommendations that the premier be indicted on bribery charges over an affair in which he is accused of kicking back regulatory favors in exchange for positive media coverage.

Of the cases Netanyahu is suspected of illegal activity in, the one known as Case 4000 is considered by the State Prosecutor’s Office to be the most serious, according to Israeli television reports.

In that case, Netanyahu is suspected of having advanced regulatory decisions as communications minister and prime minister from 2015 to 2017 that benefited Shaul Elovitch, the controlling shareholder in Bezeq, the country’s largest telecommunications firm, in exchange for positive coverage from Elovitch’s Walla news site. Sarah Netanyahu is also suspected of bribery in the case.

In another affair, Case 1000, Netanyahu is suspected of receiving benefits worth about NIS 1 million ($282,000) from billionaire benefactors, including Israeli Hollywood producer Arnon Milchan, in exchange for assistance on various issues.

A third, Case 2000, involves a suspected illicit quid pro quo deal between Netanyahu and Yedioth Ahronoth publisher Arnon Mozes that would have seen the prime minister hobble a rival daily newspaper, the Sheldon Adelson-backed freebie Israel Hayom, in return for more favorable coverage from Yedioth.

Despite the investigations, Netanyahu has remained strong in polls and he is not obligated to step down even if formally charged.

Agencies and Times of Israel staff contributed to this report.