16 Arrested for Operating a "Bank" Inside the Israel Diamond ExchangeJanuary 08, 12
(IDEX Online News) – A year-long investigation resulted in a major arrest operation today (Sunday), when police and tax authority investigators arrested 16 people, raiding their homes and offices. According to police, the group operated an illegal bank that offered loans, money transfers and currency exchanges.
The police estimated the scope of their financial activities at billions of shekels that generated large unreported profits.
Authorities arrived at the Israel Diamond Exchange in the morning hours and immediately searched the offices of some of the suspects, taking with them documents.
According to reports in the Israeli press, the year-long investigation found evidence to suspicions that the group was involved in money laundering, banking and tax related crimes.
A source at the exchange that asked to remain anonymous told IDEX Online that among the arrested is a known moneychanger that has an office inside the diamond complex.
The illegal activities were disguised as legitimate diamond trading activities.