A resident of Beit Shean is suspected of getting money from
the Ministry of Defense under false pretenses. The sums are
said to amount to millions of shekels.
The fraud and counterfeiting operation, police said, was
extremely sophisticated, and it took more than eight months
for detectives to crack it. Demobilized soldiers from across
the country are suspected of being involved. Police arrested
the suspected ringleader in Beit Shean as he was conducting
business in a bank. Tiberias Magistrate's Court remanded him
for nine days on Monday. Additional arrests are expected.
The scam involved demobilized soldiers eligible for small
business grants from the Defense Ministry. These grants range
from NIS 12,000 to NIS 16,000. According to Itim, recently
released soldiers applied for the grants and they were
supplied with the forms and necessary stamps. The soldiers
would then open fictitious businesses to be eligible. The
soldiers would get two-thirds of the grant and the ringleader
would get a third.
The forged papers were so good that Defense Ministry
officials responsible for approving the grants became
suspicious only after they noticed a larger than normal
number of businesses opening in the Beit Shean area, police
said.
Police said that they knew of 170 demobilized soldiers who
seemed to have been involved. They have so far questioned 24
from the Beit Shean area, who have admitted the fraud.
