4 days ago
Southern Israel resident convicted of 1 million NIS fraud through phishing
Magistrates' Court Judge Anat Choleta found that the defendant exploited Bank Hapoalim's 'Deposit Envelope' service to commit fraud totalling nearly NIS 1 million.
A resident of southern Israel has been convicted of aggravatedfraud and transactions in prohibited property, the Magistrates' Court ruled Wednesday morning.
Magistrates' Court Judge Anat Choleta found that the defendant exploited Bank Hapoalim's 'Deposit Envelope' service to commit fraud totalling nearly one million shekels.
According to the verdict, the defendant made 14 cash deposits using the bank's envelope service at four different branches. The service allows customers to declare a deposit amount online, place the cash in an envelope, and insert it into a machine at the branch. The declared amount is credited to the customer's account immediately, while the actual cash is counted within 48 hours.
The court found that the defendant declared deposits totalling NIS 977,088.30 but actually deposited only NIS 50,129.50—a shortfall exceeding NIS 926,000. Immediately after his account was credited, he transferred a total of NIS 1,005,430 via Zahav transfers to various suppliers.
Judge Choleta ruled that a series of circumstantial pieces of evidence formed a clear and incriminating picture. Security footage showed the defendant's son depositing envelopes that were visibly thinner than expected for the declared amounts. The gap between the declared and actual amounts exceeded NIS 900,000, with each envelope supposedly containing tens of thousands of shekels but actually containing only thousands.
Three cash counters testified that every envelope contained significant discrepancies after triple counting. 'The testimonies regarding the counting process at the cash centre rule out any possibility of a counting error on the bank's part,' Choleta wrote.
The southern district security officer for Bank Hapoalim testified that he reviewed the deposit videos and saw 'the depositor is holding an envelope that is far too thin compared to the declared amount.' He added that depositing envelopes at different branches delayed the detection of the discrepancies.
The defendant claimed he placed the correct sums in the envelopes and gave them to his son to deposit, saying he did not know how the shortfall arose. A defense witness demonstrated how an envelope could be cut open and resealed to appear intact.
Judge Choleta rejected claims of bank procedure violations or counting errors, concluding that 'the circumstantial evidence leads to one clear and reasonable conclusion: the defendant's guilt.' She noted that the defence 'did not present any real alternative scenario, nor did it provide any evidence or even preliminary evidence to support one.'
During cross-examination, the defendant was asked about the thickness of the envelopes seen in the videos. When asked by the judge how thick a bundle of 300 one-hundred-shekel notes would be, he compared it to a pack of cigarettes and admitted the envelopes in the footage were thinner.
Company employees testified that the defendant was financially motivated. The company's account had been restricted for several months, preventing payments by cheque or overdraft. Suppliers demanded immediate ZAHAV transfers to continue doing business, supporting the prosecution's case.
