Israeli Police and Tax Authority Arrest Three in Half-Billion Shekel Money Laundering Scheme Using Payment Vouchers

The Jerusalem District Central Unit (YAMAR) and the Israeli Tax Authority uncovered a major fraud case on Wednesday involving three main suspects accused of fraud, money laundering, and tax offenses totaling approximately 500 million shekels. The investigation, dubbed "Payment Voucher," revealed that the suspects operated an international economic crime network aimed at laundering money, evading taxes, and deliberately concealing income, thereby harming state revenues.

The inquiry, conducted covertly for over a year by YAMAR's fraud division alongside tax investigators from Jerusalem and the south, exposed the suspects' extensive use of real estate-related payment vouchers among other illegal activities. The suspects allegedly managed a complex web of fictitious companies and nonprofit organizations both in Israel and abroad to launder funds for local companies, smuggle money into Israel, and disguise the origin of the funds.

Their methods included cash transactions, issuing false invoices, and sophisticated concealment of money through bank transfers, real estate payment vouchers, and family members' bank accounts. On July 14, the investigation entered its overt phase, leading to raids on the homes of 16 suspects and multiple arrests. Authorities seized dozens of properties suspected to have been acquired fraudulently or with undeclared income.

So far, dozens of individuals have been questioned for allegedly using the suspects' services to launder money, evade taxes, and commit fraud. The remand of two primary suspects, aged 48 and 56 from Kiryat Yearim and Tel Aviv, was extended by the court until the following day as the investigation continues.