Investigators presented documents to Mr. Olmertallegedly showing that as a public official, he double and triple-billed institutions and charities for trips abroad and pocketed thedifference.
An American Jewish businessman has also testified that hegave Mr. Olmert envelopes stuffed with cash to support a lavishlifestyle, including fancy hotels and cigars and first-class airfare.
Police say these things took place when Mr. Olmert was a Cabinet minister and mayor of Jerusalem.
Theprime minister denies any wrongdoing. But when his own Kadima partydecided on primaries to replace him in September, he succumbed to thepressure and announced that he would resign after the vote.
editor David Horowitz says Mr. Olmert's fall from power began whenan official inquiry described his handling of the Lebanon War two yearsago as a failure.
"I don't think the Israeli public is saying,'Oh, we know that you're guilty.' I think the Israeli public didn'ttrust him after the war and felt that he couldn't do the job properly,because he was facing so many legal scandals," said Horowitz.
"Thepublic has been pressuring him for awhile to step down, from all thecorruption allegations, and I think he's made the right choice and theright choice for the country by stepping down," said a Jerusalemresident.
Israeli media say police hope to wind up theinvestigation in a month and will recommend an indictment against theprime minister.