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Under the terms of the bargain, the educational psychologist agreed to pay $2,800 in fines and hand the remaining $12,500 back to the state. The settlement also reduced the overspending charge to $50,000.
But the prime minister himself remains the main focus of the family's legal troubles.
He is facing an indictment on charges of bribery, fraud and breach of trust, pending a hearing scheduled for early October. He has pushed for a postponement and can still request an extension from the Supreme Court.
Mr Netanyahu is accused of accepting lavish gifts from billionaire friends and promising to promote advantageous legislation for a major newspaper in exchange for favorable coverage.
He vehemently denies wrongdoing, portraying himself as a victim of media-orchestrated persecution against him and his family in an attempt to oust him from power.
The prime minister and his wife have a reputation for leading indulgent lives at public expense, out of touch with most Israelis.