The Tax Authority and the Israel Police are investigating a pension fraud in the Jerusalem municipality. As part of a joint investigation by the Israel Police and the Tax Authority, four suspects were arrested today (Sunday) on suspicion of developing a criminal mechanism for withdrawing pension funds for employees of the Jerusalem Municipality by fraud, forgery and misrepresentation. According to the suspicion, the four created a mechanism through which dozens of workers withdrew pension money while working for the municipality and in violation of the law.
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The investigation began last year, after the Jerusalem District Police received a complaint from the Jerusalem Municipality, which concerned indications that there were indications about employees from one of the local authority’s branches, regarding the fraudulent withdrawal of their pension money while they are not actually working at the municipality.
In accordance with the provisions of the law, the withdrawal of an employee’s pension money is permitted only upon reaching retirement age or under the conditions set out in the law (for example: at the end of the employment).
Following the complaint, an undercover investigation was opened in the fraud unit of the Jerusalem District Police together with the Jerusalem and Southern Investigations Assessing Officer.
The investigation so far raises the suspicion that the suspects brokered, forged, and even charged fees for issuing forged documents about dismissals for the purpose of withdrawing the pension funds of dozens of local authority employees while they were actually employed. This is done by submitting them to the pension insurance companies and receiving the money fraudulently, and in a false representation as if they had been fired from their jobs.
Among the documents suspected of being forged for illegal purposes: local authority documents about termination of employment, forms 106, tax authority forms and dismissal orders of a court. All this in order for employees to withdraw their pension money at a time when they are not entitled to it, From paying taxes and in violation of the law.
The investigation of the Jerusalem District Police’s fraud investigators also shows that two of the main suspects arrested – two brothers, one of whom previously worked for the municipality himself – have committed the offenses in the last two years in dozens of different cases.
This morning, as the investigation progressed to the overt stage, detectives from the Central Unit in the Jerusalem District arrested the four main suspects in the fraud (three residents of Jerusalem and a resident of the center of the country).
The suspects are being questioned by police on suspicion of conspiracy to commit fraud, aggravated fraud, forgery of documents, use of forged documents and tax offenses.
The Jerusalem Municipality responded:
“About a year and a half ago, a number of workers were located, fraudulently stealing their pension money, while forging municipal documents and income tax. The municipality immediately contacted the Israel Police. The Jerusalem municipality will act on the findings of the Israel Police and its recommendations.”
* Presumption of innocence: The investigation against the suspects at the beginning, they were not convicted, and they have the presumption of innocence.