An investigation has been ongoing for a significant period of time by Israel Police regarding the theft of millions of euros from a bank account in Holland, a portion of which was brought to Israel by hiding the money and money laundering. Two persons were arrested as the investigation moves forward, chareidi residents of the Ramat Shlomo (Reches Shuafat) neighborhood of Jerusalem. They were released to house arrest with additional restrictions after spending ten days in jail, BeChadrei Chareidim reports.

‘M’, 44, and ‘D’ 53, residents of the same street in Ramat Shlomo in Jerusalem, were arrested last Monday during the morning hours. According to the BeChadrei report, police have been working with authorities in other countries, leading to the arrests.

The two suspects, partners, opened a bank account in Holland under the company name Hapav (הפהב). Police claim that certain individuals turned to the two and received permission to use the bank account. Over time, in 2018, within a period of a few weeks, €17 million (NIS 67.5 million) was deposited in the account. The clerks in Holland wondered what the source of the significant amount was, requesting paperwork from the account owners to explain the sum.

After a period of time, with the account owners failing to explain the source of the large sum of money deposited, the bank turned to them and asked them to withdraw the money. The report states that instead of returning the money to the source, criminal elements, they involved a third person, asking him to place €12 into another account in another bank, and it is presumed the two Jerusalem residents use that money.

Around Chanukah time in 2018, some eight months ago, a stun grenade was thrown at the entrance of a building in Ramat Shlomo. One of the tenants filed a police complaint and an investigation was launched.

It is reported the reason for the grenade incident was to send a warning and to scare one of the residents, as criminal elements wanted their money.

Police told the court the suspects allegedly took money belonging to criminals and they were traced to the building and a warning was being sent to one of them to return the money they stole.

Police theorize the two were supposed to permit the €17 million remain in the bank, as they were supposed to ‘watch over it’, but instead, they took €12 million for themselves and then, brought a significant amount to Israel in dozens of bank transfers. The two now face numerous white-collar charges, including money laundering and conspiracy to commit a crime. Investigators add there are many contradictions between the statements given by the two.

Police told the court that after the grenade attack last year, ‘M’ filed a report, explaining he is being threatened by criminals, who threatened his life and that of his family, and now the grenade attack, demanding that they protect him and his family. Not being naïve, police launched an investigation, which included trying to understand why the man and his family are being threatened by criminal elements. This led to the discovery of the money laundering and theft.

Attorneys for the two claim police have been unfair and brutal, citing the arrest was conducted with a search of M’s home, in front of his family, and police were not gentle during the search. M has appealed to the Jerusalem District Court, represented by attorneys Amit Hadad and Leah Berk, stating, “They took a man and placed him in a situation no one can be in. Such negligence, placing the two in a cell together. The two partners spent an entire night together, and if you think that is okay, then either the alleged disruption in not a disruption or there is no danger of them interfering in the investigation”. However, Judge Chaya Zandberg rejected the appeal and said she saw no point in intervening in the Magistrate Court’s decision.

BeChadrei Chareidim adds that M. who is 44, was in Nitzan Prison in Ramle over Shabbos, and he lost consciousness for a period of time and was taken to a hospital where he was treated for nine hours; then returned to prison by the Israel Prison Authority.

On Sunday, July 14, 2019, the two were brought to court, with police presenting the evidence gathered in the case. “We discovered that this is an organized group that operates in a very sophisticated fashion, dealing with money laundering”.

On Wednesday morning, July 17th, the two were brought before the Jerusalem Magistrate’s Court for a third time. At that hearing police agreed to release them to seven-days house arrest with additional restrictions.

They are not permitted to go to shul on Shabbos, they may not be in contact with one another, or others involved in the case for the period of a month. They may not leave the country for six months and they had to pay NIS 50,000 bail each along with a third-party guarantee that they will abide by all the restrictions.

(YWN Israel Desk – Jerusalem/Photo Credit: Israel Tax Authority)