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Israelis arrested for swindling IRS

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JERUSALEM (JTA) — Israeli police arrested several Israelis and Americans for stealing millions of dollars from the Internal Revenue Service.

The seven Israelis and Americans, being held on charges of money laundering, fraud and forgery, were arrested Monday for participating in a scam in which they allegedly filed fraudulent tax forms with the IRS and transferred the tens of millions of dollars from the tax returns to bank accounts in Israel.

A months-long investigation called "American Pie" by Israeli authorities reportedly found that an American Jew and convicted felon, Marvin Berkowitz, was behind the scheme.

Berkowitz, 62, who ran from the United States to Israel and made aliyah in 2003, reportedly posed as Americans in prison and applied to the IRS for tax refunds for years prior to their incarceration.

It is the second embezzling scheme involving Americans to be uncovered in the last month.

 

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