Businessman convicted of $2 m. int'l trade ‘sting’ scheme

Uri Resh convicted alongside Yehoshua Shlush, Erlado Farizi and Avi Kalmaro of forgery, fraud and customs and tax offenses committed over a decade ago.

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September 14, 2011 05:43
1 minute read.
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Suspect in court judge handcuffs arrest hearing 311. (photo credit: Thinkstock/Imagebank)

 
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The Tel Aviv District Court convicted businessman Uri Resh on Tuesday of a series of sophisticated fraudulent “sting” schemes that netted him over $2 million dollars from unsuspecting international electronics suppliers.

Resh was convicted alongside Yehoshua Shlush, Erlado Farizi and Avi Kalmaro of forgery, fraud and customs and tax offenses committed over a decade ago.

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Judge Uri Shoham found that Resh was behind a sophisticated scheme involving fake letters of credit (LC), in which computers and electronics suppliers from several countries were swindled out of millions of dollars.

Resh used front companies to order computers from abroad, offering to pay suppliers with Bank of Israel LCs. Suppliers were refused payment when they presented the forged LC to banks, but found themselves in a complex maze of front companies and middlemen when they tried to find out what happened.

Resh also ordered computers from European vendors from fictitious Palestinian companies, and avoided customs duty using forged bills of lading that seemed to have been endorsed by Arab Bank in Ramallah.

In a strange twist, the court learned that Resh used a straw company created by businessman Elhanan Tannenbaum. At the time police investigated the matter, Tannenbaum had been captured by Hezbollah in Lebanon.

Resh took advantage of Tannenbaum’s absence to accuse the captured businessman of being behind the crime.

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