Palestinian-Israeli gang suspected of stealing millions from online sellers

Suspects fraudulently acquired secondhand merchandise using fake checks and money transfers, police say

A group of Palestinians and Israelis were arrested on suspicion that they stole NIS 7 million ($2 million) worth of merchandise and equipment from secondhand sellers using fake checks and other documents, police announced on Monday.

After an undercover operation that lasted six months, two Palestinians from Ramallah were arrested, along with three Israelis from Ramle, Rishon Lezion and Rosh Ha’ayin. Police said they were still looking for a third Palestinian suspect.

In a statement, police said members of the group would identify individuals selling secondhand products and would agree on a price. Then, usually at times when banks were closed, a taxi or truck driver would come to collect the goods and hand over a forged check or a fraudulent bank transfer record. By the time the victim realized they had not received the money, the products had already been distributed to vendors in the Palestinian Authority, police said.

Police documented about 250 cases of fraud and attempted fraud in the investigation. In almost 100 cases, police were able to prevent the theft and warn the sellers before they handed over products, bringing the total value of the fraud and attempted fraud to NIS 16 million ($4.5 million).

Forged check used to purchase secondhand goods, according to a police statement on February 19, 2018. (Israel police)

The gang dealt in a wide range of goods, including medical equipment, agricultural equipment, computer equipment, restaurant equipment, amplification equipment, vehicles, toys, wines, construction equipment, electrical appliances, jewelry, tools and even animals such as puppies and a flock of sheep, police said. Each transaction was worth thousands, and sometimes hundreds of thousands, of shekels.

Each member of the gang had a specific task. According to police, some of them knew the full extent of the operation and others did not. One of the Palestinians would identify potential victims, and another managed the deal with the seller in Hebrew, while a third was responsible for forging the checks and ID cards, police said.

The Israeli suspects were two taxi drivers and a truck driver who allegedly collected the goods and transferred them to the Palestinian Authority. The group also hired Palestinian drivers to take the goods from the crossings and deliver them within the PA.

In the statement, police urged online sellers not hand over any merchandise before ensuring that the payment has come through.