Authorities arrest three main suspects accused of using shell companies, fake invoices and real estate vouchers to move funds and conceal income in Israel and abroadLiran Tamari| Related TopicsIsraeli police and the Israel Tax Authority said Wednesday they had uncovered an alleged international financial crime network accused of laundering money, evading taxes and defrauding the state of about 500 million shekels ($165 million), arresting three main suspects after a yearlong undercover investigation.Authorities dubbed the investigation "Payment Voucher," saying the name reflected the suspects' extensive use of real estate payment vouchers as part of the alleged scheme.(Photo: Shutterstock)The investigation was conducted jointly by the fraud unit of the Jerusalem District Police's major crimes division and investigators from the Tax Authority's Jerusalem and Southern District Income Tax Investigations Office.According to police and tax officials, investigators believe the three principal suspects operated an international economic crime network designed to launder money, evade taxes and deliberately conceal income, causing substantial losses to the state.Investigators allege the suspects established a complex web of fictitious companies and nonprofit organizations in Israel and abroad that was used to launder money for Israeli businesses while also smuggling funds into Israel from overseas.According to authorities, the scheme involved accepting large amounts of cash, issuing fraudulent invoices and concealing the movement of money through bank transfers, real estate payment vouchers and bank accounts belonging to relatives.The investigation remained covert for more than a year before entering its overt phase on July 14, when police raided the homes of 16 suspects and detained several of them for questioning.During the raids, investigators seized dozens of assets they believe were purchased with fraudulently obtained funds or proceeds from concealed income.Authorities said dozens of additional people have since been questioned on suspicion of using the suspects' alleged services to launder money, conceal taxable income or obtain funds through fraud.A court on Wednesday extended the detention of two of the principal suspects, ages 48 and 56, from the communities of Kiryat Ye'arim and Tel Aviv, until Thursday as the investigation continues.The suspects are being investigated on suspicion of fraud, money laundering and tax offenses. No formal indictments have been filed.Comments