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Mea Shearim money changer held in $100 million tax evasion
By ETGAR LEFKOVITS


In a massive tax fraud case, a Jerusalem money changer was arrested for alleged money laundering and otherwise evading income tax of more than half a billion shekels, police said Tuesday.

Mea Shearim money changer Shmuel Deitch, 35 was one of three suspects seized in an overnight raid carried out by Jerusalem police and Income tax officials following a year-long undercover investigation, codenamed 'money cells.'

The joint investigation began after the authorities received intelligence information that Deitch, who owns an exchange shop in Jerusalem's haredi Mea Shearim neighborhood, was laundering money for a father and son, Shlomo and Aharon Levy of Jerusalem and the suburban Jerusalem community of Beitar Ilit respectively, as well as for scores of other Jerusalem businessmen, Jerusalem police said in a press release on the case.

Deitch is also suspected of carrying out international money laundering crimes as well, the police said.

Over the last year, investigators traced the checks and deposits carried out by the money changer in nine Jerusalem banks, as well as in banks in the US.

Police declined to name the banks or say how many overseas accounts where involved, pending the ongoing police investigation.

Police discovered that Deitch would launder the "fat" checks he received, which he would assess a two percent fee on, and then deposit them in smaller amounts in various banks under fictitious account names in order not to pay any income tax on them.

During a search at their homes, police found NIS one million in shekels and foreign currencies, and seized checkbooks, computers and other documents.

Police have placed a lien on their bank accounts -- which showed NIS 300 million in recent activity – as well as on their homes and no fewer than six vehicles.

The three suspects were to be brought to a Jerusalem court Tuesday afternoon for a remand hearing. Following the arrests made in the case, income tax authorities plan to summon hundreds of Jerusalem business owners who are suspected of working with Deitch in tax evasion, the police said.