The Securities and Exchange Commission has recently launched an investigation into Bank Leumi USA, which predominately provides private bank...

The Securities and Exchange Commission has recently launched an investigation into Bank Leumi USA, which predominately provides private banking services to wealthy Americans. The SEC opened the investigation after irregularities were discovered at Leumi Investment Services Inc. during 2004. One of LISI's employees allegedly carried out improper securities trades. The matter was reported to the authorities, and the employee was fired. Bank Leumi USA has told the local media that there were suspicions of irregular activities at Bank Leumi USA's dealing room, and that the scale of the suspected trades was not large. LISI has a brokerage license to trade in securities for Bank Leumi USA's private banking customers. LISI was founded in 2001, and received permits in 2003 to expand its activities to the sale of insurance and the marketing of mutual funds managed by large investment houses. The moves comes after the Israeli police are investigating Eliahu Eisdofer, the head of private banking in Israel at Bank Hapoalim, about suspected money laundering transactions at the bank. Mr Eisdofer is suspected of having advised various parties about the affairs of a company whose accounts may have been used to launder money, according to reports in the Israeli media.