9 suspected of defrauding NIS 60 million from the National Insurance Institute
Nine people were arrested on Monday as suspects in a scam that allegedly defrauded more than 60 million shekels ($ 18.19 million) from the National Insurance Institute with bogus cash claims, the report said. Israeli police in a statement.
Police and National Insurance Institute tax investigators searched the homes of suspects, employees of Trinity Computer Systems, who were questioned.
They are suspected of fraudulent concealment with aggravating circumstances, forgery, false registration of social documents and social security offenses.
Investigators believe the suspects have systematically approached large corporations and institutions – including public institutions – with offers to collect money on behalf of their employees owed to them from the NII.
The suspects allegedly tampered with data, which was then submitted on behalf of employees with false financial reports.
Over several years, the National Insurance Institute has paid companies tens of millions of shekels while suspects have apparently received millions in commissions.
The companies involved are not suspected of wrongdoing at this stage.
Among the suspects are six lawyers and an accountant, Channel 12 reported. Companies that have been approached by the suspects include Fattal Hotels, furniture giant IKEA and Reut Medical Center, according to the report.