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Police say largest invoice forgery scheme exposed
Months of covert investigation leads to arrest of nine suspects involved in distribution of fictitious invoices totaling NIS 3.5 billion, theft of NIS 600 million in taxes
The Tax Authority and the police's Financial Fraud Unit exposed Monday morning what they called "the largest forgery scheme known-to-date" for the distribution of counterfeit invoices.
According to suspicion, the ring members conducted fictitious transactions estimated at some NIS 3.5 billion (appox. $900 million) and stole NIS 600 million from the state's tax money.
Fraud Scheme
Three managers of United Revenue Service Inc accused of opening undeclared bank accounts for clients at Luxembourg, Switzerland branches of Israeli banks
The covert investigation, which lasted several months, was made possible due to intelligence obtained by the police.
According to the investigation, the ring acted in the following method: Two large fuel traders, one from the north of Israel and one from the south, set up a number of front companies that were used to distribute fictitious invoices. These invoices were issued to the companies they owned, which enabled them to collect tax refunds and pay the required VAT payments for the excise tax.
In addition to the nine people arrested on suspicion of criminal activity, 15 other suspects were arrested, including fuel traders who are suspected of distributing the fictitious invoices.
During a raid on the suspects' houses and businesses, police seized many documents, computers and hundreds of thousands of shekels in cash, as well as several luxury vehicles.
