A group of suspects allegedly used manpower companies and a currency exchange firm to run a scam that netted more than NIS 200 million, police said on 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.
Chief Superintendent Vered Vinikov, spokesman 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, and further arrests are expected.