Israelis suspected of US tax return fraud arrested
Police
raid homes of suspects who allegedly cooperated with Americans to
swindle tens of millions of dollars from IRS, transfer money to Israeli
bank accounts. Police suspect 62-year-old American Jew who fled to
Israel as head of operation
Eli Senyor • Ynet
Police
suspect that seven Israelis and Americans embezzled tens of millions of
dollars from the US tax authorities and transferred the money to Israel.
The
National Fraud Unit arrested the Israeli suspects, and their remand
hearing is scheduled for Monday at the Tel Aviv Magistrate's Court.
The
investigation, dubbed "American Pie" began several months ago, when the
federal authorities asked Israel to probe the case. Head of the
National Fraud Unit Brigadier-General Shlomi Ayalon, Who met with the
Americans, tasked an investigation team headed by Deputy Commander
Yoran Naaman, with the case.
In
recent months, the unit has been working undercover with the American
tax authority and police to investigate suspicions of money laundering
to Israel.
The
probe revealed that a 62-year-old American Jew, who had fled to the US
for Israel several years ago after his involvement in various fraud
felonies, was behind the operation.
The
suspects allegedly systematically filed fraudulent reports to the IRS,
and then transferred the tax returns they received to bank accounts in
Israel. Police believe the suspects used the names of federal prisoners
to file their reports.
Investigators managed to track the movement of tens of millions of dollars from the US to Israel.
Besides
money laundering, the suspects could be facing charges of fraudulent
receipt of funds under aggravated circumstances, forgery under
aggravating circumstances, and various tax felonies
The
investigation came to light on Monday when the National Fraud Unit
investigators raided the homes of the suspects and arrested them.
Meanwhile, police briefed the American authorities on the developments
and arrests in the US are likely to be made in the near future.
This
is not the first time Israelis are suspected of embezzling money from
the Americans. The US recently requested the extradition of 11 Israelis
suspected of scamming elderly Americans by phoning them and informing
them they had won the lottery.
The
victims were told they would have to deposit money in Israel in order
to receive their winnings, and were never contacted again by the
scammers.
The 62-year-old ringleader is Marvin Berkowitz.
Berkowitz was convicted in 1988 of two counts of obstruction of justice and one count of stealing government property. He was released from prison on June 4, 1993.
Army radio is reporting Berkowitz made aliya (immigrated to Israel) in 2003.
Source > failedmessiah.com | Aug 03