Israel's Olmert may face corruption charges

    * Story Highlights
    * Attorney General Menachem Mazuz says Olmert committed fraud
    * Israeli prime minister allegedly took cash from U.S. businessman
    * Olmert says money was legitimate campaign funding

JERUSALEM (CNN) -- Israel's attorney general says he is considering charging 
Prime Minister Ehud Olmert with corruption over allegations he illegally 
received funds from an American businessmen.

Attorney General Menachem Mazuz says Olmert committed fraud and breached 
confidences when he allegedly used his then-position as mayor of Jerusalem to 
help businessman Morris Talansky in 2006.

Olmert says the money he received was legal campaign funding.

Mazuz will decide whether to indict Olmert after the prime minister has had a 
chance to refute the charges in a hearing before the attorney general. No date 
has been set for that meeting.

Mazuz ordered an investigation in April 2008 into the relationship between 
Olmert and Talansky. Talansky gave a colorful testimony last year, telling of 
various times that he handed Olmert envelopes stuffed with cash. The testimony 
badly damaged the already unpopular Olmert.

Israeli police recommended in September that Olmert be charged with corruption 
over the Talansky case and the "Rishon Tours affair," in which Olmert was 
accused of pocketing money for official travels. A hearing in the Rishon Tours 
case is set for April.

Olmert announced days after the police recommendation that he would resign as 
head of the Kadima party. Israelis went to the polls last month and Olmert is 
now caretaker prime minister until a new government is formed.

-- CNN's Shira Medding contributed to this report.
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