Albar Convicted in Vehicle Import Fraud Case, Faces Proposed NIS 18 Million Fine

The Tel Aviv District Court convicted Albar, based on its own admission, of a series of fraud, customs, and tax offenses in a plea deal with prosecutors. Under the agreement, both sides asked the court to impose an NIS 18 million fine on the company. Criminal proceedings against other defendants in the case are still ongoing.

According to the amended indictment, Albar began seeking entry into the parallel car-import market in 2013. Prosecutors said the company and others submitted false documents and agreements to create the appearance that it met the legal requirements for an import license and permits for various car models. On that basis, the Transportation Ministry issued the necessary authorizations.

Using permits allegedly obtained by fraud, Albar imported 1,828 vehicles into Israel with a total value of more than NIS 176 million. The indictment says the company also used additional forged paperwork, including fake sales invoices and false certificates of origin, to convince authorities that the cars met permit conditions and to obtain tax benefits. Customs authorities were also said to have received about 1,600 false import declarations, which understated purchase costs by more than NIS 4 million.

Prosecutors further alleged that Albar made false entries in its books through fictitious records designed to conceal the true transaction costs and the source of the money. As a result of the plea, the company was convicted of fraudulently obtaining benefits, smuggling, additional customs offenses, VAT offenses, use of a forged document, submitting false import declarations, evading import taxes, and false corporate recordkeeping. The prosecution said the proposed fine reflects significant financial punishment, the public interest, and the company’s acceptance of responsibility for acts committed by senior corporate officers. Albar said the case dates back 12 years, under a management that left in 2015, and that it is moving on to continue serving its customers and operating normally.