Albar Convicted in Tax and Fraud Case, Faces NIS 18 Million Fine

The Tel Aviv District Court has convicted Albar, the leasing and car-rental company owned by businessman Eli Elezra, on fraud and tax offenses after the company admitted the charges. Under the plea agreement, both sides will ask the court to impose an NIS 18 million fine on the company.

The case stems from a long-running Tax Authority investigation that began in 2015 into suspected customs and transport-ministry fraud, including false documents, underreporting import values, and evading import tax worth about NIS 25 million. Elezra, who controls the Elezra Group and chairs Albar, was questioned in 2015, and several other senior company officials were arrested and later released under restrictions. In May 2020, the prosecution said it was considering indictments pending hearings.

In August 2021, the Tax and Economic Prosecution filed charges in the Lod District Court against Albar, former CEO Yinon Amit, former CFO Irit Franko, purchasing manager Reut Bnudis, and against Haim Levi, Danny Levi, their companies Haim Levi Trade-In and Global Automax. The indictment said the defendants worked to mislead the Transport Ministry so Albar could receive approval for parallel vehicle imports, despite legal limits on that activity.

According to the amended indictment, Albar imported 1,828 vehicles from the United States to Israel before the investigation opened in July 2015, buying them for about NIS 176 million. Prosecutors said the company used forged invoices and false certificates of origin, submitted about 1,600 false import declarations, understated purchase costs by more than NIS 4 million, and made false accounting entries. The court convicted Albar of fraud, smuggling and customs offenses, VAT offenses, use of forged documents, false import declarations, tax evasion, and false corporate records. Proceedings against the other defendants are continuing.