Sara Netanyahu, wife of Israeli PM, charged with fraud

He was accused of receiving cigars, champagne and jewelry worth "hundreds of thousands of shekels" from Hollywood mogul Arnon Milchan and other supporters in exchange for pushing a law insuring Israelis returning from living abroad are exempt from paying tax for 10 years.

"Bibi," as he is known, is also accused of working out a deal for favorable coverage with Arnon "Noni" Moses, the publisher of an Israeli newspaper, Yediot Aharonot, in exchange for backing a bill that would weaken a rival newspaper.

Sara Netanyahu, 59, has inspired a multitude of headlines in the past over what family spokesmen call an undeserved reputation for imperiousness.

It seemed unlikely the latest case could cause significant political damage to her husband, now in his fourth term as Israel’s leader and riding high in opinion polls despite the allegations against him.

The prime minister has called the allegations against his wife absurd and unfounded.

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