Jerusalem - American Who Fled To Israel Linked to Massive U.S. Tax Fraud
Last updated on: August 3, 2009 02:05 PM
Jerusalem - Israel’s National Fraud Unit Monday morning arrested seven Israelis and Americans on suspicion of a large-scale scam against U.S. tax authorities, local daily the Jerusalem Post reported.
According to an initial probe, 62-year-old Jerusalem resident Marvin Berkowitz, who holds both Israeli and American citizenships, and other Israeli suspects are alleged to have masterminded a scheme whereby they fraudulently obtained tax refunds totaling tens of millions of dollars which were then transferred to various bank accounts in Israel.
Yediot Ahronot is reporting that the investigation, dubbed “American Pie” began several months ago, when the federal authorities asked Israel to probe the case. The probe revealed that American Jew Mr. Berkowitz fled to the US for Israel several years ago after his involvement in various fraud felonies.
Meanwhile, local daily Ha’aretz reported that a hearing is scheduled for Monday afternoon in the Tel Aviv Magistrate’s Court, where the suspects will be arraigned.
Read the indictment here
The affair follows a similar case last month in which 11 Israelis were arrested for allegedly swindling elderly Americans out of more than 25 million dollars in a telemarketing sting, said Ha’aretz, adding that prosecutors sought court approval to extradite the 11 people who are wanted in the United States.
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