Manpower scam brought in over NIS 200 million

At the center of the case are a number of suspects who work in the human resources industry, and allegedly falsified records and inflated expenses.

By
June 20, 2016 19:03
1 minute read.
Israel police

Israel Police patrol car [File]. (photo credit: Wikimedia Commons)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

A group of suspects allegedly used manpower companies and a currency exchange firm to run a scam that brought in more than NIS 200 million, police said Monday, as they made a wave of arrests across central Israel.

At the center of the case are a number of suspects who work in the human resources industry, and allegedly falsified records and inflated expenses in order to defraud the National Insurance Institute and other government bodies out of large sums of money. They are also suspected of falsifying their records in order to avoid paying taxes and of using currency exchange businesses to launder the money.

Be the first to know - Join our Facebook page.


Chief Superintendent Vered Vinikov, the spokesperson of the Police Investigations and Intelligence branch, said in a video statement on Monday that police suspect the people arrested Monday “built a large framework for systematic tax evasion and fraud through forging business reports and pay stubs, and through the use of straw companies. This allowed them to make a large profit for themselves and avoid paying taxes, largely through the use of currency exchange stores.”

On Monday morning police arrested 19 suspects and detained several more during raids at their homes and offices. The suspects could potentially face charges of aggravated fraud, aggravated forgery, conspiracy, money laundering, and tax evasion.

One of the suspects is the owner of one of the leading currency exchange companies in Israel, which is traded on the Tel Aviv stock exchange.

The investigation is ongoing police said Monday, and further arrests are expected.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Maccabi Tel Aviv players
November 19, 2018
Maccabi TA takes on Anadolu Efes

By JOSHUA HALICKMAN