Netanyahu confidants named as suspects in new corruption probe

By Jeffrey Heller and Tova Cohen

JERUSALEM (Reuters) - Israeli police revealed on Tuesday they had arrested the controlling shareholder and CEO of the country's biggest telecoms company, as well as two former officials with close ties to Prime Minister Benjamin Netanyahu, in a corruption case.

The arrests in the investigation dubbed "Case 4000" came just days after police recommended Netanyahu himself be indicted for bribery and fraud in other cases, known as "1000" and "2000".

Shaul Elovitch, a family friend of Netanyahu's who controls telecoms firm Bezeq through his Eurocom holding company, was arrested along with his wife, his son and Bezeq's CEO Stella Handler.

Former Netanyahu spokesman Nir Hefetz and former Communications Ministry Director-General Shlomo Filber, both known as close confidants of the prime minister, were also arrested.

All the arrests took place on Sunday, but the identities of the suspects were withheld for two days under standard Israeli criminal procedure.

Elovitch, his wife and son deny any wrongdoing, a Eurocom spokeswoman said. A lawyer for Handler said she is cooperating fully with the investigation and denies the allegations. Bezeq officials declined to comment.

SOURCE: YAHOO NEWS