9 suspected of swindling NIS 60 million from National Insurance Institute

Nine people were arrested Monday as suspects in a scam that allegedly swindled over NIS 60 million ($18.19 million) from the National Insurance Institute with fake claims for cash reimbursements, the Israel Police said in a statement.

Police and tax investigators from the National Insurance Institute raided the homes of the suspects, employees of Trinity Computer Systems, who were taken in for questioning.

They are suspected of receiving items fraudulently under aggravated circumstances, forgery, false registration of corporation documents, and social security offenses.

Investigators believe that the suspects systematically approached large companies and institutions — including public institutions — with offers to recover cash on behalf of their employees due to them from the NII.

The suspects allegedly faked data, which was then submitted on behalf of the employees along with false financial reports.

Over a number of years, the National Insurance Institute paid out tens of millions of shekels to the companies while the suspects apparently received millions in commissions.

The companies involved are not suspected of any wrongdoing at this stage.

Among the suspects are six lawyers and an accountant, Channel 12 reported. Companies that were approached by the suspects include Fattal Hotels, furniture giant IKEA, and the Reut Medical Center, according to the report.

Source Link: https://www.timesofisrael.com/9-suspected-of-swindling-nis-60-million-from-national-insurance-institute/

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