7 Israelis, Americans Nabbed in Tax Scam


tax-scamPolice suspect that seven Israelis and Americans embezzled tens of millions of dollars from the US tax authorities and transferred the money to Israel.

The National Fraud Unit arrested the Israeli suspects, and their remand hearing is scheduled for this afternoon at the Tel Aviv Magistrate’s Court.

 The investigation, dubbed “American Pie” began several months ago, when the federal authorities asked Israel to probe the case. Head of the National Fraud Unit Brigadier-General Shlomi Ayalon, Who met with the Americans, tasked an investigation team headed by Deputy Commander Yoran Naaman, with the case.

In recent months, the unit has been working undercover with the American tax authority and police to investigate suspicions of money laundering to Israel.

The probe revealed that a 62-year-old American, who had fled to the US for Israel several years ago after his involvement in various fraud felonies, was behind the operation.

 The suspects allegedly systematically filed fraudulent reports to the IRS, and then transferred the tax returns they received to bank accounts in Israel. Police believe the suspects used the names of federal prisoners to file their reports.

 Investigators managed to track the movement of tens of millions of dollars from the US to Israel.

 Besides money laundering, the suspects could be facing charges of fraudulent receipt of funds under aggravated circumstances, forgery under aggravating circumstances, and various tax felonies.

 The investigation came to light on Monday when the National Fraud Unit investigators raided the homes of the suspects and arrested them. Meanwhile, police briefed the American authorities on the developments and arrests in the US are likely to be made in the near future.

 This is not the first time Israelis are suspected of embezzling money from the Americans. The US recently requested the extradition of 11 Israelis suspected of scamming elderly Americans by phoning them and informing them they had won the lottery.

 The victims were told they would have to deposit money in Israel in order to receive their winnings, and were never contacted again by the scammers.

 {Yair Alpert-Matzav.com Israel/Ynet}


  1. What happened now? This story is several years old. A beheima did time here in Chicago. His family was taken care of by an individual in town, while he was locked up. This Chaya Ra’ah then ran off to Israel where he started this fraudulent accounting business. He then recruited THE SON of the selfless individual who helped his family, and gave him these fradulent tax returns to file, who then signed his name to his work, not knowing the fraudulent nature of what he was doing. He ended up sitting for a number of months for that. The Chaya Ra’ah’s own son in Chicago also did some time over this same issue. This was a couple of years ago. What is new about this?

  2. Btw, I too know this man, and guess what? He is NOT yeshivish or chassidish, but comes from a less yeshivish background!!!
    So for all those who think this type of behavior comes from being too frum- think again.
    His son is actually a nice guy and it’s a pity he had to sit for his father. Boruch Hashem the son (who already sat earlier) moved on in life and is raising a nice family.

  3. A point of clarification; I know ‘THE SON’, and B’Chasdei Ha-Shem, he never sat a day incarcerated. Nebach, this man is sick and needs our tefillos, not name calling. In these days of Ikvesa D’Meshicha let’s all let bygones be bygones and move on from this tragic episode. Kol D’Avid Rachmanah L’Tav Avid!