The suspects are thought to have defrauded dozens of investors both in Israel and abroad of NIS 120 million.
Five Israelis have been arrested on suspicion of having carried out an international fraud operation in which dozens of investors from Israel and abroad were defrauded of approximately NIS 120 million, Israel Police reported on Monday morning.
The arrests were the result of a year-long undercover investigation carried out by the National Fraud Investigation Unit in collaboration with the Official Receiver’s department at the Justice Ministry, the Tel Aviv Tax Authority and the Israel Money Laundering and Terror Financing Prohibition Authority.
Alleged evidence of money laundering offenses, tax offenses, false registration of corporate documentation, offenses under VAT law, insolvency law and obstruction of justice was collected during the investigation.
On Monday morning, police officers from the National Fraud Investigation Unit raided the homes of the five suspects and arrested them, seizing findings relevant for the investigation.
The investigation material so far shows that the suspects created a false presentation that they showed to investors, regarding “innovative and groundbreaking technology,” which they promised was in the final stages of development, with potential for sales and large profit.
The suspects then transferred the investors’ money to various bank accounts through several false fronts in Israel and abroad, laundering the money and using it for their personal needs.
According to Hebrew media reports, one of the suspects is the son of a former IDF Chief of Staff.
This is a developing story.