Israeli Business Figures Questioned in Alleged Multimillion-Shekel Asset-Hiding Scheme

Investigators from Lahav 433’s National Economic Crime Investigation Unit detained contractor and businessman Dudi Appel, Michael Kleiner — an attorney, former Knesset member and president of the Likud tribunal — as well as businessman brothers Yaffe and Yitzhak Dayan, for questioning last Monday, it was cleared for publication today (Wednesday).

The investigation is being conducted jointly with the Insolvency Commissioner and centers on suspicions of serious economic offenses allegedly carried out through the concealment of assets and the hiding of capital. According to the suspicions, those involved acted in a planned and systematic manner over a period of time, seeking to prevent creditors and law-enforcement authorities from locating assets and financial rights worth tens of millions of shekels.

According to suspicions, Appel — who has been in insolvency and bankruptcy proceedings for years — presented himself as having no significant assets, while allegedly concealing rights in real estate through a complex web of transactions and circular routes intended to keep the assets out of reach of authorities and creditors.

The role of attorney Michael Kleiner is also being examined in the same case. He is suspected of helping advance the moves. Brothers Yaffe and Yitzhak Dayan are also suspected of cooperation that allegedly became systematic, with the aim of generating substantial financial profits and preventing the assets from being uncovered.

As the investigation moved into its public phase, Lahav 433 investigators raided several locations, seizing property that is suspected of being intended as the basis for future forfeiture proceedings. After hours of questioning, the four suspects were released under restrictive conditions.

The investigation is not yet complete, and the investigative unit believes that another person involved in the case, who is currently outside Israel, is also expected to be questioned. The offenses being examined in the case include violations under the criminal chapter of the Bankruptcy Ordinance, money-laundering offenses, tax offenses and obtaining something through fraud.

Dudi Appel’s name has been familiar for decades as one of the prominent figures in Israel’s business and political arenas. During the 1980s and 1990s, he was a significant figure in the Likud camp and was known for helping advance senior political figures. He was later convicted of bribery offenses and served prison sentences.

In 2012, Appel entered insolvency and bankruptcy proceedings following heavy debts, proceedings that placed legal restrictions on him regarding the holding and concealment of assets. Investigators are now examining whether, despite those restrictions, actions were allegedly taken to bypass oversight mechanisms and hide property from creditors.