Seven Israelis and Americans arrested for huge US tax scam

Aug. 3, 2009

Israel's National Fraud Unit arrested seven Israelis and Americans on Monday morning on suspicion of a large-scale scam against US tax authorities.

According to an initial probe, 62-year-old Jerusalem resident Marvin Berkowitz, who holds both Israeli and American citizenships, obtained the personal data of American prisoners, posed as them and appealed to the American tax authorities for tax refunds due from the period prior to their incarceration. The money, at times amounting to tens of thousands of dollars a case, was then deposited in Israeli bank accounts.

Army Radio reported that Berkowitz is a convicted felon who made aliya in 2003.

Police will ask the Tel Aviv Magistrate's Court to extend the detainees' remand.

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