A huge National Insurance Institute fraud has been discovered. The Israel Police Lahav 433 National Fraud Unit today arrested three suspects and detained 10 more for questioning on suspicion of systematic and comprehensive fraud against the National Insurance Institute amounting to tens of millions of shekels.
The investigation is being conducted in cooperation with the Israel Tax Authority, the National Insurance Institute, and the Ministries of the Economy and Agriculture, with the advice of the Northern District State Criminal Prosecutor.
According to an announcement by the investigating authorities, a prolonged undercover investigation involving Lahav 433, the Israel Tax Authority Central Region investigative tax assessment official, investigators from the Nazareth investigative unit and the National Insurance Institute Northern District national investigative unit, the Ministry of Agriculture Plant Protection and Inspection Services unit, and the intelligence unit in the Ministry of the Economy Regulations and Labor Law Enforcement Administration established grounds for suspecting the existence of a network committing systematic and prolonged fraud involving National Insurance Institute funds.
It is suspected that a bookkeeper living in Haifa, a number of prominent figures living in Kfar Manda, and others conspired to systematically defraud the National Insurance Institute by submitting hundreds of claims for allowances of various types using pay slips suspected of being fictitious and of having been obtained by fraud.
The investigative units, led by Lahav 433, today searched the suspects' homes and offices, seizing documents, computers, and property for the purpose of forfeiture.
Those arrested and questioned are suspected of having committed fraud, forgery, conspiracy, violations of the Income Tax Ordinance, and violations of the National Insurance Law.
According to the police and the Tax Authority, the investigation is only beginning, and the detaining of many more suspects for questioning is expected.
Depending on developments in the investigation, some of the suspects will be brought for a court hearing today to request an extension of their remand at the Rishon Lezion Magistrates Court.
Published by Globes [online], Israel business news - www.globes-online.com - on October 7, 2015
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