The Israeli Ministry of Education has filed a major lawsuit against a kollel in Ashkelon, alleging what officials describe as one of the largest cases of fraudulent reporting ever uncovered in a Torah study institution.
According to the lawsuit, published by Galei Tzahal, the nonprofit organization reported to the Ministry of Education that 648 married yeshiva students and seminary students were enrolled in its institutions, while in reality only several dozen students were actually studying there.
Through these reports, the kollel allegedly received millions of shekels in government funding.
Court documents show that between 2012 and 2022, the organization received more than 40 million shekels based on the number of students it continuously reported to the ministry.
The alleged fraud was uncovered in 2022 during a covert inspection conducted at the organization’s institutions. Inspectors reportedly found that only a few dozen students were present at the site.
The investigation revealed that the relatively small building - which the organization claimed housed six different Torah institutions - actually contained billiards and ping-pong tables in the shelter area and kindergartens on the first floor.
On the second and third floors, investigators found space for at most about 100 people, where several dozen kollel students were present. The yeshiva that had been reported to the Ministry of Education reportedly did not exist at all.
According to testimony obtained by investigators, the alleged scheme operated through fictitious registration of students, who in return allegedly handed back part of the stipends they received to the association in cash.
At this stage, the Ministry of Education is seeking approximately 3 million shekels from the organization, representing government support funds transferred at the beginning of 2022 during the period when inspections were conducted.
However, ministry officials stated there is a reasonable basis to believe the alleged fraudulent method had been operating for many years beforehand.
Journalist Tuvia Yagelnik summarized the affair by saying, “This is only the tip of the iceberg of a large industry of fictitious reporting involving yeshiva students in the Haredi community."