The director of a NGO and eleven other suspects were taken into custody on Monday morning 7 Teves during a early-morning raid in their homes following a prolonged undercover investigation by police. The investigation surrounds alleged fraud amounting to over NIS one million, monies intended for student scholarships from the Ministry of Education.

Police and detectives raided the homes on Monday morning, armed with search warrants for the head of the NGO and 11 other suspects in Jerusalem. Police confiscated documents and computers, as well as dozens of checks made out in high amounts.

The investigation began several months ago with the filing of a complaint by the Ministry of Education’s enforcement department, according to which, since 2015, the director of a non-profit organization operating in Jerusalem has allegedly received in excess of NIS 1 million in payment of educational scholarships to young students by fraudulent means.

This was discovered in the framework of an audit conducted by the Ministry of Education at the association’s address, where building demolitions were found, and it emerged that the NGO was apparently fictitious.

Upon receipt of the complaint, investigators from the Central Unit’s Fraud Division opened a covert investigation, in which evidence and other findings were gathered that led to the identification of the suspects and their detentions/arrests on Monday morning.

The suspects were brought in for questioning where they were interrogated on suspicion of receiving funds fraudulently, conspiracy to commit a crime and money laundering.

According to the investigation, the main suspect, a 39-year-old Jerusalem resident opened a fictitious organization, whose details were transferred to the Ministry of Education together with the details of dozens of students ostensibly studying in the organization, in order to receive scholarship money for them.

It was also found that most of the young people whose details were transferred are not in any educational institution, some of whom were expelled from the education system and some serve in the IDF.

Another concern was that the money received from the Ministry of Education had come into the hands of some of the suspects. Upon conclusion of the investigation, any of the suspects will be brought before the court to hear their explanations.

The investigation is continuing and further arrests are expected.

(YWN – Israel Desk, Jerusalem/Photo Credit: Police spokesman unit)