Alleged smuggler ring busted at Ashdod port

In an early Monday morning raid, more than 200 police officers swooped down on container stacks at Ashdod port and arrested 17 people throughout the city suspected of embezzling millions of shekels in an import tax evasion scheme.

Under the guise of an international company operating at the port, the suspects allegedly smuggled merchandise such as alcohol, using covert importing methods to evade paying customs on the items.

Members of the group are suspected of embezzling and laundering more than NIS 30 million shekels ($7.5 million) they earned through the scheme.

Police believe that at first, the group worked through a private customs brokerage company and an import business to artificially mark down and devalue alcoholic beverages in order to significantly reduce their import tariffs while pocketing the difference.

Later they allegedly circumvented port authorities entirely to evade paying tax altogether. Through this method they managed to conceal their profits and launder millions of shekels.

Police assert that the group is not directly connected to workers or officials at the Ashdod port.

During the bust, detectives seized computers, documents, merchandise and bank account details.

A remand hearing was set for Monday afternoon at the Kfar Saba Magistrate’s Court, where police will ask to keep the accused under arrest.

The cell is suspected of committing several counts of fraud and customs offenses.

Located just south of Tel Aviv, Ashdod’s port is a major cargo and container gateway for Israel, along with the ports in Haifa and Eilat.

Authorities began intensely scrutinizing activities at the port following a number of high-profile stings there in recent years.

In May 2014, 15 workers and officials at the harbor were arrested on suspicion that they had promoted contracts for private companies in return for kickbacks.