JERUSALEM (Reuters) - Israel’s attorney-general said on Sunday he was considering indicting Prime Minister Ehud Olmert on suspicion of illegally receiving funds from an American businessman.

Olmert, who denies any wrongdoing, would be the first Israeli prime minister to be indicted should Attorney General Menachem Mazuz decide to charge him with criminal offenses.

“The attorney general told Prime Minister Ehud Olmert that he was considering filing a criminal indictment against him over suspicions that he committed various offenses in the ‘Talansky scandal,’” the Justice Ministry said in a statement.

U.S. businessman Morris Talansky testified in an Israeli court in May that he had given Olmert cash-stuffed envelopes and personal loans to the tune of $150,000 over a 15-year period, money that Olmert never repaid.

Amir Dan, an Olmert spokesman, said any charges would be unfounded.

Olmert resigned in September over a string of corruption probes. Police also suspect he made duplicate claims for travel expenses and appointed cronies to various government bodies when he served as mayor of Jerusalem and trade and industry minister.

Foreign Minister Tzipi Livni succeeded Olmert as head of the ruling Kadima party.

(Writing by Joseph Nasr, Editing by Jon Boyle)