The Israel Police and the National Insurance Institute (NII) have uncovered a large-scale fraud scheme involving tens of millions of shekels in false claims for “disabled child” benefits related to autism, they said Thursday in a joint statement.
Following a lengthy investigation, officers from the Jerusalem Police Fraud Unit and NII investigators arrested a resident of the South suspected of orchestrating the operation with the cooperation of several parents.
The scheme allegedly involved forged medical documents, false representations, and the unlawful receipt of millions of shekels in state benefits. Some parents knowingly took part in the scam, and the investigation remains ongoing, the authorities said.
Information collected by NII investigators raised suspicions of fraudulent claims for autism-related disability benefits. Together with the Jerusalem Police Fraud Unit, investigators launched a comprehensive probe into suspected fraud, forgery, and obtaining property by deception.
The main suspect operated through her privately owned company, offering families “assistance” in applying for disability benefits for their children, the investigation found.
She allegedly recruited parents who were aware their children did not meet eligibility criteria and submitted false claims on their behalf, including forged medical documents, fabricated professional opinions, and falsified forms that appeared to be signed by recognized professionals.
Charged families tens of thousands of shekels
The suspect used parents’ personal access codes to log in to the NII’s computerized system and filed forged claims in coordination with others. For each case, she allegedly charged families tens of thousands of shekels for their participation in the illegal activity, the investigation found.
The police and NII investigators gathered extensive evidence showing the unlawful receipt of disability benefits totaling tens of millions of shekels. As their suspicions were confirmed, the main suspect and several others, including parents whose children were receiving benefits under false pretenses, were arrested.
Searches of the homes of the suspects led to the seizure of documents, large sums of cash, and other materials connected to the case. They are suspected of aggravated deception, document forgery, use of forged documents, fraud, and breach of trust.
“This is a serious case in which, according to suspicions, medical documents were forged, and benefits were fraudulently claimed for personal profit, severely harming public funds and trust in state institutions,” the police and NII said.
“The Israel Police and the National Insurance Institute take any attempt to deceive state authorities and harm public funds very seriously and will continue to act decisively using all available means to expose all those involved and bring them to justice,” the statement said. “Additionally, the NII will pursue the collection and return of the fraudulently obtained funds.”