Major scandal: former Likud MK detained by police
Israeli police detained a group of individuals, including a former Likud MK, on suspicion of real estate fraud. The main suspect is a developer, bankrupt since 2012, who concealed assets worth tens of millions of shekels through fictitious deals. The aim was to hide property and evade taxes. Assets have been seized.
Israeli police, together with the Bankruptcy Authority, have moved to the open phase of an investigation into a large-scale real estate fraud scheme. As part of a special operation, the Lahav 433 unit detained for questioning a construction contractor, several entrepreneurs, and a former Knesset member who holds a senior position in Likud party structures. According to Channel 12, the main suspect—a developer officially undergoing bankruptcy proceedings since 2012—systematically concealed ownership of expensive real estate worth tens of millions of shekels, failing to declare assets and illegally removing them from the control of trustees. The scheme was built on fictitious deals: the contractor sold property at reduced prices to trusted individuals, who then resold the real estate to actual buyers at market or inflated prices, returning the proceeds to the organizer for a fee. The goal was to conceal true property rights and evade taxes. Police have seized numerous properties for subsequent confiscation by court order. Earlier, Kursor reported that the Likud party court canceled a provision allowing current and former MKs, ministers, and their deputies to participate in district primaries, which could change the balance of power before the formation of the list for the next elections.