Olmert faces more police questioning

JERUSALEM, July 8 (UPI) -- Israeli Prime Minister Ehud Olmert is facing further questioning in an investigation of alleged financial fraud, the newspaper Haaretz reported Tuesday.

Citing unnamed sources, the Israeli newspaper said Olmert would be questioned Friday for the third time in the case, in which police are examining alleged links between the prime minister and Morris Talansky, a Jewish-American businessman from New York.

In a preliminary deposition, Talansky testified that he delivered $150,000 cash in envelopes to Olmert for his political campaigns and travel expenses but denied receiving anything in return. He is expected to be a key witness against the prime minister and was to arrive in Israel Thursday to be cross-examined by Olmert's lawyers, Haaretz reported.

"The case against Olmert has grown stronger," an unnamed senior official told the newspaper, saying inquiries in the United States have resulted results for prosecutors.