Four Senior Likud Affiliates Questioned Over Real Estate Concealment and Money Laundering

The National Economic Crime Investigation Unit of Lahav 433 detained four suspects this week, including Michael Kleiner, former Knesset member and president of the Likud Appeals Court, and contractor Dudi Apple, on suspicion of involvement in a scheme to conceal real estate assets and launder money during bankruptcy proceedings. Businessmen brothers Yaffa and Yitzhak Dayan are also among those questioned. The investigation, conducted in cooperation with the Insolvency and Economic Rehabilitation Commissioner, alleges that the suspects operated a system to hide real estate rights worth tens of millions of shekels through complex legal arrangements to prevent authorities from seizing these assets during insolvency processes.

Dudi Apple, who has been undergoing bankruptcy proceedings since 2012, is at the center of the case. Despite ongoing legal processes, he allegedly concealed property rights via various transactions and legal structures, maintaining control over assets without proper reporting. Police suspect Michael Kleiner assisted in advancing these actions, while the Dayan brothers collaborated in structuring the transactions. Authorities believe this was a systematic and deliberate effort to hide assets and generate illicit profits while circumventing the law.

Following the transition to an open investigation, Lahav 433 conducted searches and seized significant assets to consider confiscation in future legal steps. After several hours of questioning, the four suspects were released under restrictive conditions, and the investigation continues. Another suspect currently abroad is expected to be questioned upon return to Israel.

Upon leaving Lahav 433, Dudi Apple sharply criticized the investigation and enforcement authorities, calling them "a group of crooks, fraudsters, and thieves" attempting to take his money twice. Apple has a prior conviction for bribery and served prison time. His lawyer, Efraim Damari, claimed the case is old, having been investigated about 14 years ago, and questioned why authorities reopened it after the matter was resolved.

The Dayan brothers’ lawyers, Uri Korav and Sivan Russo, stated their clients are law-abiding businessmen with no blemish on their conduct. They emphasized the investigation concerns events from over a decade ago, has been ongoing for years without evidence, and lacks any initial proof of wrongdoing.

The suspects face allegations including violations of the Bankruptcy Ordinance, money laundering, tax offenses, fraud, and other economic crimes. The investigation remains active, and no indictments have yet been filed.