09 Sep 2020
Thirty people were arrested Monday as police revealed they had cracked an allegedly massive graft plot involving hundreds of millions of shekels in tax evasion and money laundering.
The scam involved the fraudulent takeover of hundreds of companies in the fuel sector that were then used to issue fake financial paperwork to “outwit” the country’s registrar of companies, the Israel Police said in a statement.
In addition, police suspect that some of those involved were operating gas stations that sold diluted fuel, damaging thousands of vehicles.
Officers raided suspects’ homes and places of work, seizing property, cars and trucks. In addition, the suspects’ bank accounts were frozen.
“This is a serious affair in which criminal elements joined professionals and freelancers, including lawyers and accountants,” the tax authority said in a statement.
The developments came as a six-month undercover joint investigation by police, the Justice Ministry’s Corporations Authority, and the Energy Ministry was made public.
More arrests are expected in the coming days.
Police said that an organized gang operated across the country, allegedly filing false paperwork to take over hundreds of officially registered companies. Under the guise of ownership of those companies — and unbeknownst to the actual owners — they are suspected of having opened bank accounts, obtained credit, issued fake invoices and laundered money amounting to hundreds of millions of shekels.
By Stuart Winer, The Times of Israel, 7 September 2020
Read more at The Times of Israel
RiskScreen: Eliminating Financial Crime with Smart Technology
Count this content towards your CPD minutes, by signing up to our CPD WalletFREE CPD Wallet