Israelis, Americans Arrested In "Massive" Tax Fraud

Head of scheme convicted US felon now living in Israel.

Israelis suspected of US tax return fraud arrested
Police raid homes of suspects who allegedly cooperated with Americans to swindle tens of millions of dollars from IRS, transfer money to Israeli bank accounts. Police suspect 62-year-old American Jew who fled to Israel as head of operation
Eli Senyor • Ynet

Police suspect that seven Israelis and Americans embezzled tens of millions of dollars from the US tax authorities and transferred the money to Israel.

The National Fraud Unit arrested the Israeli suspects, and their remand hearing is scheduled for Monday at the Tel Aviv Magistrate's Court.

The investigation, dubbed "American Pie" began several months ago, when the federal authorities asked Israel to probe the case. Head of the National Fraud Unit Brigadier-General Shlomi Ayalon, Who met with the Americans, tasked an investigation team headed by Deputy Commander Yoran Naaman, with the case.

In recent months, the unit has been working undercover with the American tax authority and police to investigate suspicions of money laundering to Israel.

The probe revealed that a 62-year-old American Jew, who had fled to the US for Israel several years ago after his involvement in various fraud felonies, was behind the operation.

The suspects allegedly systematically filed fraudulent reports to the IRS, and then transferred the tax returns they received to bank accounts in Israel. Police believe the suspects used the names of federal prisoners to file their reports.

Investigators managed to track the movement of tens of millions of dollars from the US to Israel.

Besides money laundering, the suspects could be facing charges of fraudulent receipt of funds under aggravated circumstances, forgery under aggravating circumstances, and various tax felonies

The investigation came to light on Monday when the National Fraud Unit investigators raided the homes of the suspects and arrested them. Meanwhile, police briefed the American authorities on the developments and arrests in the US are likely to be made in the near future.

This is not the first time Israelis are suspected of embezzling money from the Americans. The US recently requested the extradition of 11 Israelis suspected of scamming elderly Americans by phoning them and informing them they had won the lottery.

The victims were told they would have to deposit money in Israel in order to receive their winnings, and were never contacted again by the scammers.

The 62-year-old ringleader is Marvin Berkowitz.

Berkowitz was convicted in 1988 of two counts of obstruction of justice and one count of stealing government property. He was released from prison on June 4, 1993.

Army radio is reporting Berkowitz made aliya (immigrated to Israel) in 2003.

[Hat Tips: Seymour, YBM.]

Comments

[mkarpas]

Was Marvin Berkowitz Orthodox? If not, what is an ezine that says that its covering Orthodx Judaism since 2004 reporting on this

[Shmarya]

At the very least, the laundering of money is similar to the Spinka and Deal/Brooklyn scandals.

We'll eventually find out if any of the scammers are Orthodox.

[harold]

Was Marvin Berkowitz Orthodox? If not, what is an ezine that says that its covering Orthodx Judaism since 2004 reporting on this

The agenda has changed to be if it anything negative about jews it would be reported. Classic anti-semitism.

[bnei.levi@gmail.com]

Shmarya,

Don't post this comment until verified.

Marvin's brother is R' Zvi Berkowitz of Baltimore, son in law of R' Shmuel Kamenetsky

[seymour]

Was Marvin Berkowitz Orthodox? If not, what is an ezine that says that its covering Orthodx Judaism since 2004 reporting on this

The agenda has changed to be if it anything negative about jews it would be reported. Classic anti-semitism.

Posted by: harold | August 03, 2009 at 09:47 AM

read it http://il.findacase.com/research/wfrmDocViewer.aspx/xq/fac.%5CFDCT%5CNIL%5C1989%5C19890526_0000226.NIL.htm/lnkCite

Berkowitz faithfully practices the Orthodox Jewish religion. He is physically fit. In addition, he has never sought or received the help of a psychiatrist or other mental health professional. He is a social drinker who has never abused alcohol or drugs to excess. He has no juvenile record. However, he was charged with uttering a forged document in Crown Point, Indiana, in 1977. In addition, on April 13, 1988, he was indicted on mail fraud and tax fraud charges by a federal grand jury in the Northern District of Illinois. Those charges are still pending before Judge Marshall.

[The Other DK]

I have not had contact with Marvin Berkowitz since before he was first arrested. At the time I knew him, he was part of the Orthodox community in Chicago.

[Yoel Mechanic]

The above exchange discussing whether the perpetrator is Orthodox just caused me to realize something about this whole website "Covering Orthodox Judaism...." The fact that someone involved is Jewish, and orthodox isn't sufficient reason to report it as something to "cover Orthodox Judaism". It is quite possible that the Orthodox background is simply not relevant. One would have to make a cogent argument that somehow the culture of Orthodox Judaism supported or encouraged such behavior, or at least failed in a responsibility to prevent it. Then one would have to offer evidence that this actually happened in this particular case. However that is rarely done, the fact that someone is "orthodox" is sufficient to make it newsworthy on a site that wishes to show the alleged seamy underside of the orthodox world. Everything is left to insinuation and inuendo (ie. insinuendo) Is the purpose of all this to encourage belligerence or to initiate a bad repuation? Or merely to promote a pre-existing bad reputation? Hardly a proper goal for someone who allegedly wants to spread truth for the sake of justice.

[Shmarya]

Please.

The point has been made many times over that the haredi world does not in any way distance itself from the criminals in its midst.

Indeed, quite the opposite is true.

The point has also frequently been made that the haredi lifestyle – rejecting secular education, high birth rate and private schools – cannot be self supported and forces haredim to steal.

And then there is the simple issue of holding one's community to be holier and better than others, while tolerating and even encouraging theft.

And – not to forget – the covering up of child sexual abuse.

And then revoking conversions.

And then the agunah problem.

But don't let logic, morality or compassion get in your way…

[stan edwards]

shmarya

what a name,while usually meaning god has heard you,to the godless it would mean god heard us.with friends like you sharpton and obamma can sleep well at night
maharsayich u'machrivayich mimech yetzui
ever read perfidy?victims accuse,you have lots of company in the afterlife you have no belief in

[Yosef ben Matitya]

stan edwards, sorry but
clearly u don't know much + additionally, you are misled by those out to mislead u and others.
Shema'ayah indicates G-d hearing....while
Shemaryah is one "kept, protected by G-d".
So your first comment does not add up to anything coherent.
As to isaiah 49:17
a- meharsayikh and not maharsayikh.
b- macharivayikh is spelled with a chataf patach (not sheva) under the letter chet.
c- yetze-u has a maamid sign under the letter tzadee along with the sheva. and the word in any case cannot ever be transliterated as yetzui.
d- מְהָֽרְסַיִךְ וּמַֽחֲרִיבַיִךְ מִמֵּךְ יֵצֵֽאוּ׃ is one of the comfort prophecies indicating that the bad enemies will be flushed out of jerusalem, not what you seem to mean that oy oy oy jerusalem is creating it's own enemies.