Israeli Food Giant Accuses Sales Agent of Multi-Million Shekel Fraud

Neto Melinda, a major Israeli food company controlled by Adi Ezra, is suing a former sales agent for allegedly orchestrating a sophisticated fraud scheme over 13 years. The company is seeking the immediate return of approximately 330,000 shekels, along with the forfeiture of the ex-employee's severance pay.

According to legal filings, the agent allegedly created fake customer credits for "price differences" or non-existent merchandise returns, without informing the customers. He then used these credits to place large orders for meat, poultry, and fish, diverting the goods to external destinations. Red flags were raised during an internal audit that uncovered illogical supply orders, including charges and credits for meat deliveries to a dairy bakery.

One notable instance involved a prominent Jerusalem hotel. The agent reportedly set up a fictitious "distribution branch" for the hotel in Bnei Brak, using a synagogue's address. Through this fake branch, he generated tens of thousands of shekels in credits for the hotel, enabling him to withdraw valuable goods and offset poultry and fish deliveries without the hotel's knowledge. In another case, a commercial client's charges were rerouted to the hotel's account using these fabricated credits to mask discrepancies.

During a pre-termination hearing, the agent reportedly admitted to the actions but claimed he acted out of a desire to help the needy. His legal representative argued that while the agent operated with "lack of transparency and in a gray area," he used excess customer payments to purchase food items that were then distributed as charity to impoverished families.

The financial dispute and allegations of widespread embezzlement will now be decided in court.