Brother and Sister Suspected of Distributing Fake Invoices Worth $55 Million

A brother and sister are suspected of operating a network of shell companies to distribute fake invoices totaling approximately NIS 55 million (about $15 million USD). According to the Israel Tax Authority, these invoices were provided to various companies for transactions that never occurred, enabling those companies to improperly claim tax deductions and reduce their tax liabilities.

David Dostan, one of the suspects, was arrested on Sunday as part of an investigation by the Tax Authority's Tel Aviv and Central Investigations Unit. He is accused of managing a network of shell companies established specifically for the creation, distribution, and fraudulent use of these fictitious invoices. The companies allegedly had no genuine business activity behind the invoices they issued.

Dostan's sister, Rinat Lahav, was also arrested in connection with the case and subsequently released under restrictive conditions, as was her brother. Authorities suspect Lahav assisted her brother in distributing the fake invoices through companies registered in her name.

The investigation is ongoing, and the suspects have not been convicted. The Tax Authority is examining the extent of the alleged scheme, which is currently estimated to involve NIS 55 million in fraudulent invoices.