Ex-Prison Service Officer Convicted of Bribery, Theft, and Money Laundering

Arkady Shkovitzky, a former construction officer for the Israel Prison Service (IPS) in the Central District, has been convicted of accepting NIS 500,000 in bribes from contractors he employed. Central District Court Judge Michal Barnt also found Shkovitzky guilty of public employee theft, money laundering, and income concealment.

Shkovitzky's then-wife, Natalia Shkovitzky, was convicted of income concealment exceeding NIS 120,000. The court acquitted Shkovitzky of accepting NIS 70,000 in bribes.

According to the indictment, Shkovitzky influenced the payment amounts to the main contractors, thereby affecting their profits from projects subcontracted to others. He dictated the identity of subcontractors for work, effectively choosing who would perform tasks for the IPS. He also influenced the pricing of work, often inflating it beyond actual costs to generate additional profits for himself and the contractors.

Shkovitzky denied all charges, claiming the case was fabricated by IPS officials seeking revenge for his exposure of their misconduct. However, Judge Barnt rejected this defense, noting the investigation began after inquiries from three unrelated parties and that many witnesses implicated themselves by testifying against Shkovitzky. Extensive wiretap evidence also supported the conviction.

The couple was also convicted of concealing income from a hotel they operated and a rented apartment. This conviction marks the final ruling in the "Money Cage" case, which previously saw guilty pleas and convictions for Doron Taborinsky, Assaf Kraus, Benjamin Biton, Aharon Shaked, Shlomo Hatukha, Reuven Gonen, and Bani Bazov. The prosecution was represented by attorney Eliran Ashkenazi, and Shkovitzky by attorney Uriel Nazri.