Israel Revokes Security Firm License Over Protection Money Scheme

Israel's Ministry of Justice has revoked the license of the security firm "Alufim B'Bitachon Ltd." due to its involvement in providing an accounting cover for protection money collection. The decision was made by the Licensing Committee for Private Investigators and Security Services, citing criminal and intelligence information linking the company and its security organizer to extortion and money laundering activities. This led the Northern District Prosecutor's Office to file an indictment against them for these offenses.

The committee stated that the decision followed a review of administrative evidence presented by law enforcement and intelligence agencies, with assistance from the State Attorney's Civil Enforcement Unit, the Northern District Prosecutor's Office, and the Ministry of Justice's legal department, in cooperation with the Israel Police. A hearing was also conducted for the company and its owners.

Evidence indicated that clients were pressured to pay for security services, with threats of damage if they refused. In many cases, despite payments, no actual security was provided, and the payments functioned as a "tax" collected by criminal "bosses" controlling specific areas. The indictment reveals that the company actively approached contractors and businesspeople, claiming to represent security firms or to be in charge of security in certain areas, and negotiated payment terms due to the clients' fear of property damage and business disruption.

The committee concluded that the security firm provided an accounting facade for criminal operations across the country, which involved a division of territories where criminal elements extorted protection money. Previously, the Ministry of Labor had suspended the company's licenses as a manpower and service contractor in the security and cleaning sectors based on similar information.

Officials from the Ministry of Justice's Professional Licensing Department noted that this license revocation is part of a recent trend of canceling licenses for security firms and organizers involved in protection rackets. These administrative and economic enforcement actions are seen as a significant component in combating the growing problem of protection rackets, which have increasingly exploited businesses and security companies to legitimize and advance illegal activities.