Israel Police have arrested an Israeli ring on suspicion of international fraud on an enormous scale, extortion, and threats against companies all over the world, while using First International Bank of Israel (TASE: FTIN) accounts to transfer the money.
Police today raided a number of places in Israel, arresting 20 members of the ring on suspicion of belonging to a criminal organization. They are also suspected of fraud, aggravated fraud, extortion, aggravated forgery, conspiracy to commit a crime, tax offenses, running a criminal organization, and money laundering.
The findings of a covert investigation lasting over 18 months showed that the ring's actions were prolonged and large-scale, and extended to many countries.
The suspected ring's main focus was in Israel. Working from Israel and large and diverse regions around the world, the ring is suspected of using Internet and computer platforms to make false presentations to foreign companies.
The police suspect that money gained from fraud was transferred to the suspects in Israel from overseas in various ways. The police allege that the fraud amounted to tens of millions of dollars and euros.
According to the police, this fraud, called "social engineering," which is carried out using various methods, has been speedily growing in recent years, causing unprecedented public relations damage to Israel as a source of this type of fraud. Combatting this type of crime is therefore an important goal for the police, which is waging a determined and uncompromising struggle against it using all available means.
The ring is suspected of using fictitious company names and officeholders for fraudulent purposes, forging documents, and using straw men to open accounts in various overseas locations. This activity was backed by criminals in Israel, who received a share of the gains and protected the perpetrators of the fraud using extortion and threats when necessary.
A national police fraud unit conducted the investigation in cooperation with the Israel Tax Authority Yahalom unit and the Israel Money Laundering and Terror Financing Prohibition Authority, in consultation with the Tel Aviv State Prosecutor's Office (taxation and economics).
Subject to progress in the investigation, the suspects will be brought to the Rishon Lezion Magistrates Court for a hearing to extend their remand.
Published by Globes [online], Israel Business News - www.globes-online.com - on March 1, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017