The New Nation - Internet Edition

AP, Jerusalem

A New York fundraiser and a Las Vegas gambling czar have become major headaches for Israeli Prime Minister Ehud Olmert, raising new questions about the relationship between Jewish Americans and the Jewish state.

While Israel has had close ties with the U.S. Jewish community throughout its history, some wealthy American donors have extended their influence to Israel's halls of power, crossing what many Israelis see as a red line. The cases of fundraiser Morris Talansky and casino mogul Sheldon Adelson have drawn new attention to this sometimes blurry relationship.

Talansky's testimony that he handed Olmert cash-stuffed envelopes in the years before he became prime minister is at the center of a scandal that may topple the Israeli leader. Olmert's lawyers are set to cross-examine Talansky on Thursday.

Adelson, meanwhile, has launched a newspaper that makes no bones about its disgust with Olmert.