Plea deal with star witness in Bitan case said to hit difficulties

Moshe Yosef, the man who allegedly brokered bribes for lawmaker, is reportedly refusing to testify against a major crime organization tied to the case

A plea deal between state prosecutors and a former associate of Likud MK David Bitan, seen as a central component of the corruption case against him, has stalled due to the man’s refusal to testify against a crime organization implicated in the case, Hadashot TV news reported Friday.

Rishon Lezion businessman Moshe Yosef had reportedly been set to admit to brokering bribes between businessmen and the lawmaker as part of the deal.

Bitan, during his time as deputy mayor of Rishon Lezion, is suspected of taking loans from members of the Jarushi crime family and, when he was unable to repay them, offering favors in exchange for forgiveness of the loans.

Prosecutors have demanded that as part of the plea deal, Yosef give all information he has on illegal dealings connected to the case. However, Yosef is now said to be refusing to testify directly against the Jarushi family.

Another point of contention is authorities’ seizure of Yosef’s assets, estimated at NIS 20 million. Yosef’s attorneys have been angling to release some of those funds as part of the plea deal, but have been refused by the Israel Tax Authority, which says Yosef owes some NIS 5 million in back taxes.

Channel 10 news reported on Sunday that police suspect the bribery schemes may have continued even after Bitan entered the Knesset in 2015 and was appointed coalition whip.

Metzada furniture store in Rishon Lezion, suspected of being used to launder money on behalf of MK David Bitan. (Screen capture: Google Maps)

According to the report, Dror Glazer, a real estate developer, who has been questioned by police and may make a deal to turn state’s witness, is suspected of transferring NIS 150,000 ($43,000) through Yosef in exchange for Bitan advancing legislation that would benefit Glazer.

The investigation, dubbed by police “Case 1803,” has seen the arrests of dozens of suspects, including Rishon Lezion’s mayor and other city officials, local businessmen, and organized crime figures. Bitan stepped down as coalition whip shortly after news of the investigation broke.

Police have examined files at Yosef’s furniture store, which investigators believe was used as a front for money laundering.

When the probe into Bitan began, officers set up hidden cameras and recording devices in the store, and, based on the evidence they collected, built up a strong case against him, according to leaks from the investigation.

Police footage from the cameras reportedly showed Bitan counting large sums of money and appearing to use the store as a bank to withdraw cash. Officers were also said to have secretly filmed Bitan’s wife leaving Yosef’s store while carrying an envelope investigators believe was stuffed with cash.

Following a five-hour interrogation session with police Sunday, during which Bitan chose to remain silent, investigators have reportedly postponed another interrogation initially scheduled for Tuesday.