• Tallman

Jerusalem: A mega money-laundering network uncovered


The Israel Police has uncovered a network of dozens of people involved throughout the country, on suspicion of taking over the ownership of the companies in the Registrar of Companies' records, and through this they committed tax and money laundering offenses amounting to hundreds of millions of shekels.

The Fraud Department and the Economic Unit of the Jerusalem Police Central Unit, in cooperation with the Tax Authority, the Registrar of Companies in the Ministry of Justice and the Ministry of Energy have been conducting a covert investigation for about six months, during which an organized 'network' was revealed. Forged, managed to outwit the mechanisms of the Registrar of Companies, and declaratively took over the ownership of hundreds and possibly thousands of different companies across the country and registered them in their name, below:

To deceive the mechanisms of the Registrar of Companies while submitting false affidavits and forged documents, in order to take declaratory ownership of hundreds and possibly thousands of different companies across the country and register them in their name.

Use of documents attesting to their ownership in the companies, in order to open bank accounts and obtain credit in a manner corresponding to the company's original accounts.

Issuing fictitious invoices on behalf of the company while carrying out transactions with an estimated value of hundreds of millions of shekels, and in this way the suspects also defrauded the authorities and pocketed millions of shekels while harming the state coffers and the public.

As the investigation progressed, suspicion grew as to the motives of the suspects, who are using the oil of those legitimate companies, most of which are engaged or have an affiliation in the field of energy and fuel supply, in order to carry out money laundering and taxation offenses estimated at hundreds of millions of shekels. And while putting the suspects in the pockets of the public and the state coffers and sweeping the funds into their personal pockets.

Police investigators also revealed that some of the suspects owned gas stations in several cities, and that some of the fuels traded by the suspects and supplied to the public were found to be mixed with other substances in violation of the law, and the suspicion arose that dozens and hundreds of civilians were damaged.

This morning, as the investigation progressed to the overt stage, the police and the authorities raided the homes and businesses of 30 suspects across the country, and they were detained / arrested for questioning. During the searches, the police worked with the authorities to freeze real estate assets and about 9 vehicles, including luxury vehicles and trucks, and bank accounts were frozen.

The Tax Authority: "The tax offenses in the case are being investigated by the Jerusalem Customs and VAT Investigations Department in cooperation with the Diamond Unit of the Tax Authority. According to the suspicion, this is a serious affair according to which criminal elements teamed up with freelancers, including lawyers and accountants, and committed offenses of offsetting and distributing fictitious tax invoices in violation of the VAT Law and the Income Tax Ordinance, as well as violations of the Anti-Money Laundering Law in the diesel industry. The fuels were allegedly stolen by the perpetrators and used the legitimate legal entity without the knowledge of the companies, issuing fictitious tax invoices and entering them in their books. "

Ministry of Energy: "As part of the combined inspection operation, inspectors and investigators of the Fuel Administration at the Ministry of Energy led the process of examining the quality of fuel and seizure of fuel at stations and sites where mixing and mixing is suspected. The Fuel and Gas Administration Meets the highest standards".

After the police, in cooperation with the authorities, succeeded in stopping the further commission of the offenses and strengthening the mechanisms for registering and changing the details of companies in Israel, investigators are focusing efforts to locate more companies that fell victim to the suspects, and we call on company owners across the country to check with the registrar.




READ MORE: 

Will "Block-chain"​ technology be effective in combating terror financing?

Israeli Police Spokesman, September 7, 2020

Image byGerd AltmannfromPixabay

website_logo_transparent_background.png

Subscribe to Our Newsletter

  • LinkedIn
  • White Facebook Icon

© 2023 by i-AML