3 arrested on suspicion of attempting to blackmail Lanir- owner of Empire Online

[clevfan]

3 arrested on suspicion of attempting to blackmail Lanir

Two months ago, Empire Online CEO Noam Lanir filed a complaint with the police that criminals were trying to extort money from him.

Noam Sharvit
16 Aug 05
Israel business news

A gag order was lifted today on the Central District Police central unit’s arrest of three men suspected of attempting to blackmail Noam Lanir, CEO of online gaming company Empire Online Ltd. (AIM:EOL). The suspects will be brought before the Ramle Magistrates Court today, where the police will ask for their remand.
Lanir, 38, floated Empire Online a month ago at a company value of almost $1 billion. He filed a complaint with the Kfar Saba Police two months ago, claiming that criminals were trying to extort money from him. Lanir claimed that these criminals demanded a partnership in his company, or even control of it, and that they had threatened to harm him if he refused.

The police suspect that the persons are affiliated with local criminal gangs with gambling interests. The police conducted an undercover investigation and put Lanir under close protection, due to concern that he might be attacked. The police say that surveillance provided sufficient evidence to charge the suspects with extortion, enabling their arrest today.

Lanir sold $63 million worth of shares in Empire Online as part of its IPO, and now owns 21.4% of the company, worth $198 million.

Published by Globes [online], Israel business news - www.globes.co.il - on August 16, 2005