Police question Rami Levy on suspected fraud

Rami Levy Photo; Tamar Matsafi

Mevasseret Zion local council head Yoram Shimon is suspected of helping Levy evade betterment tax.

The Israel Police national fraud squad today detained for questioning Rami Levy, owner of Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. (TASE: RMLI ), who is suspected of fraud and breach of trust. They also detained for questioning Mevasseret Zion local council head Yoram Shimon, a local newspaper manager, and another businessman. 

Rami Levy's share price was down 6.5% after the news became public.

The questioning concerned Rami Levy's relations with Shimon. According to a Channel 2 News report, the local council head allegedly helped Levy evade NIS 21 million in betterment tax for the roof of the shopping mall and receive better terms for his payments to the local council. When Levy received an exemption on the full betterment tax, Shimon's wife was serving as the new mall's marketing manager and his former campaign manager was the mall's CEO. 

The investigation recently became public, with the police conducting a search of the local council's offices in order to seize documents and detaining a local council member, following by four more suspects today. The suspects' homes were also searched.

Shimon has been released but ordered to stay away from the council's offices for 60 days.

Published by Globes [online], Israel Business News - www.globes-online.com - on September 10, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Rami Levy Photo; Tamar Matsafi
Rami Levy Photo; Tamar Matsafi
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