A widescale economic crime investigation by Lahav 433's National Unit for the Investigation of Economic Crime reached senior figures associated with the Likud movement, after four suspects were detained for questioning on suspicion of the concealment of real estate assets, fraudulent asset transfers, and other financial offenses.
Among those questioned are former MK and Likud Appeals Court President Adv. Michael Kleiner, contractor Dudi Appel, and businessmen Yaffe and Yitzhak Dayan. The investigation is being conducted in cooperation with the Justice Ministry's Insolvency and Economic Rehabilitation Commissioner.
According to investigators, the suspects allegedly operated for years to conceal ownership of real estate assets worth tens of millions of shekels, using mechanisms designed to prevent authorities from locating the properties and including them in insolvency proceedings.
At the center of the case is contractor Dudi Appel, who has been in insolvency proceedings since 2012. Police suspect that despite the ongoing legal process, ownership rights to valuable real estate were concealed through a series of transactions and legal structures that allowed Appel to retain effective control of the assets without reporting them as required.
Investigators believe Michael Kleiner assisted in advancing parts of the scheme, while the Dayan brothers allegedly cooperated in structuring the transactions. Police believe this conduct was systematic and well-planned effort to conceal assets and generate financial profits while circumventing the law.
As the investigation became public, Lahav 433 investigators carried out multiple searches and seized significant assets and property as part of preparations for possible forfeiture proceedings. After several hours of questioning, the four suspects were released under restrictive conditions. The investigation is ongoing, and police said another suspect currently abroad is expected to be questioned upon returning to Israel.
Speaking after leaving Lahav 433 headquarters, Appel sharply criticized the investigation and law enforcement authorities, saying, "There is a group of crooks, swindlers, and thieves who want to take a man's money twice. This time I won't let them get away with it. They will pay for this."
Appel was previously convicted of bribery offenses and served a prison sentence.
Appel's attorney, Ephraim Damari, said the case concerns events that were already investigated about 14 years ago and questioned why authorities chose to reopen the matter after the previous proceedings had concluded.
Attorneys Uri Korb and Sivan Russo, representing the Dayan brothers, said in a statement: "Yaffe and Yitzhak Dayan are law-abiding citizens and respected businessmen whose conduct has been beyond reproach. This investigation concerns events that took place more than a decade ago and has been ongoing for several years without findings or even preliminary evidence indicating a suspicion of any wrongdoing, and that is not a coincidence."
According to police, the suspects are being investigated, each according to his alleged role, on suspicion of offenses including violations of the Bankruptcy Ordinance, money laundering, tax offenses, obtaining property by fraud, and other economic crimes. No indictments have been filed at this stage.