Israeli Tax Fugitive Yaniv Moalem Extradited from Panama After International Manhunt

After nearly two and a half years of an international manhunt, Yaniv Moalem was extradited from Panama to Israel last night. Moalem was convicted in one of the most severe tax evasion and money laundering cases uncovered in recent years. He fled Israel during his ongoing trial, but a complex enforcement operation led by the Israel Tax Authority, the International Department of the State Attorney's Office, the Israel Police, and Interpol culminated in his extradition for the continuation of his legal proceedings.

Upon arrival at Ben Gurion Airport, Moalem was handed over from Interpol officers to investigators from the Customs and VAT Investigations Unit in Jerusalem and immediately brought before the court. The legal department of Customs and VAT in the Northern District requested his detention until the conclusion of the trial due to a significant flight risk. The court approved the request and ordered his detention.

Moalem was convicted in the Nazareth District Court on two serious indictments for operating a sophisticated network of shell companies and front men. This network issued and offset hundreds of fictitious tax invoices in the fuel sector, amounting to hundreds of millions of shekels. The state treasury was defrauded of approximately 65 million shekels, while money laundering was conducted through currency service providers, involving cash withdrawals of tens of millions of shekels and concealment of their origins.

Before fleeing and after partial evidence presentation, Moalem admitted to the charges in a plea bargain. The agreement included a request for a 10-year prison sentence, heavy fines, and extensive asset forfeiture. After his escape, the Customs and VAT legal department also acted against his financial guarantees, with the court ordering the seizure of personal guarantees totaling about one million shekels and warning that anyone aiding his escape would face consequences.

Moalem was located and arrested in Panama in September 2024. Following a complex extradition process, he was transferred to Israel this week. Attorneys Alaa Khair and Avner Didi, head of the Customs and VAT legal department in the Northern District, are now working to complete the criminal proceedings and enforce the confiscation of assets seized during the investigation.