Police and the Israel Tax Authority have revealed details of a major joint investigation, dubbed "Proof of Payment," into an international financial crime network suspected of tax evasion, money laundering and fraud totaling an estimated NIS 500 million.
The investigation, led by the Jerusalem District Police Fraud Division together with the Tax Authority's Income Tax Investigation Unit for Jerusalem and the South, followed more than a year of covert investigative work. Authorities say three central suspects were arrested as part of the operation.
According to investigators, the suspects allegedly operated a sophisticated network of fictitious companies and organizations in Israel and abroad that was used to launder money for Israeli businesses, transfer funds from overseas and bring the money into Israel while concealing its origins.
Police said the network allegedly relied on a variety of methods, including receiving large sums of cash, issuing fictitious invoices, carrying out bank transfers, splitting payments through real estate payment slips and using bank accounts registered in the names of relatives. The investigation's name, "Proof of Payment," stems from the alleged use of real estate payment documentation to disguise financial crimes and evade taxes.
The investigation entered its overt phase last Tuesday, when police raided the homes of 16 suspects. Several individuals were arrested for questioning, while authorities seized dozens of assets believed to have been acquired through the alleged criminal activity and the concealment of taxable income.
Investigators have also questioned dozens of additional individuals suspected of using the network's services. A court has extended the detention of two of the principal suspects, a 48-year-old resident of Kiryat Yearim and a 56-year-old resident of Tel Aviv, until Wednesday as the investigation continues.