Suspected fraud of millions of shekels from donation funds for soldiers

An Israeli company attempted to defraud millions of shekels from donations to soldiers, in exchange for the supply of defective protective equipment to soldiers.

IDF Armored forces at a staging area near the northern Israeli border with Lebanon. October 14, 2023. (photo credit: MICHAEL GILADI/FLASH90)
IDF Armored forces at a staging area near the northern Israeli border with Lebanon. October 14, 2023.
(photo credit: MICHAEL GILADI/FLASH90)

The police opened an investigation on Thursday following a tip-off that an Israeli company had attempted to defraud millions of shekels from donations to soldiers, in exchange for the supply of protective equipment to soldiers that is suspected of being defective and substandard and even life-threatening.

While the entire nation of Israel strengthens the IDF soldiers, and volunteers and donates equipment, food, and money on their behalf - there are those who abuse the situation.

A complaint was filed at the Harel police station of the Jerusalem district by a reserve officer who had worked to organize the purchase of a large amount of protective equipment such as personal protective vests for IDF soldiers from donation funds.

The complaint indicates that he received an application from representatives of an Israeli company who claimed that they could supply a large quantity of high-quality personal protective vests from abroad for the soldiers.

From tests conducted by the complainant with the authorities abroad, they suspected that it was non-standard protective equipment, and then he contacted the police about the matter.

Police and security personnel gather around the body of a Palestinian terrorist at the scene of a shooting attack at ''HaMinharot'' checkpoint, near Jerusalem, October 11, 2023. (credit: NOAM REVKIN FENTON/FLASH90)
Police and security personnel gather around the body of a Palestinian terrorist at the scene of a shooting attack at ''HaMinharot'' checkpoint, near Jerusalem, October 11, 2023. (credit: NOAM REVKIN FENTON/FLASH90)

According to a police spokesperson, immediately after receiving the complaint, an investigation was opened and transferred to the fraud unit in the Jerusalem District of the police.

An initial and quick inspection conducted by the investigators with the relevant officials in the IDF and the Defense Ministry, and with other officials, revealed that an Israeli company experiencing financial difficulties engaged in importing combat equipment from abroad.

Previous attempts to pass off defective armor

According to the complaint, the company already tried to market the defective personal protective equipment in its possession to the Ukrainian army, which refused to accept it due to the protective defects that were discovered in it.

In an initial investigation conducted by the fraud investigators in the Jerusalem District with the relevant IDF officials, it became clear that the IDF received opinions suspected of being fake, which claimed that it was protective equipment resistant to high-level bullet hits, although, in reality, the suspicion is that this is not true at all.

In addition, according to the new report, the company worked to sell the equipment to several other entities, including the Association for the Soldier.

Following the suspicions and the additional investigative actions carried out by the police investigators, Thursday morning the detectives of the Jerusalem District Police arrested the manager of the company, a 56-year-old resident of Tel Aviv, as well as another 21-year-old suspect on suspicion of involvement in fraud. In the company's offices, various findings were seized and transferred with the suspects for investigation.

Additionally, the company's account with hundreds of thousands of shekels in it was frozen, and the police are working with customs to delay and inspect the shipment of the equipment that arrived tonight from abroad to Israel by air. The investigation continues in the fraud unit of the Jerusalem district in cooperation with other security forces and the IDF.

Commander of the Fraud Unit of the Jerusalem District, Superintendent Eli Liebkind said: "The investigation is in its infancy and we will continue to carry out all the necessary actions quickly and thoroughly. To the extent that the suspicions are confirmed, it is a cynical, ugly, and improper exploitation of funds intended for the purpose of supporting and strengthening our fighters in the framework of the ongoing war these days. Supplying damaged or substandard equipment to soldiers could have endangered their lives in wartime."