Massive Tax Fraud Operation Uncovered in Israel
Arrests and Seizures Mark the Beginning of Legal Proceedings
In a significant crackdown on economic crime, Lahav 433 and the Tax Authority have arrested two lawyers on suspicion of orchestrating a massive tax fraud scheme. The suspects, along with several accomplices, are accused of trading in dozens of companies and installing 'monkeys' as figureheads to facilitate the distribution and offset of fictitious invoices worth NIS 3.5 billion. The operation allegedly resulted in the theft of approximately NIS 850 million from the state treasury.
The National Unit for the Fight against Economic Crime (YALK) in Lahav 433 led the investigation, collaborating with the Jerusalem and Haifa Customs and VAT Investigation Departments and the Serious Crime Audit Unit. The investigation reveals that an attorney from Kfar Kassem took control of dormant companies and, through his agents, used these entities to distribute and offset fictitious invoices. The suspect also conducted numerous operations involving VAT on behalf of companies that were on the verge of closure.
This morning, the investigation transitioned from covert to open operations. In a coordinated effort involving the tactical brigade, the desert brigade of the Mageb, and the Qassem station police, authorities arrested 10 suspects, including lawyers from Kfar Kassem and Jerusalem. Six additional suspects were detained for questioning, and dozens more are expected to be questioned as the investigation progresses.
During searches of the suspects' residences, authorities seized a significant amount of property, including luxury vehicles, real estate, gold bars, luxury watches, bulk gold, cash, computers, and numerous documents. The authorities intend to request the confiscation of these assets as part of the legal proceedings.
This case highlights the extensive efforts by Israeli law enforcement to combat economic crime and protect the state's financial interests. The investigation is ongoing, and further developments are expected as more suspects are questioned and additional evidence is gathered.
