Food importer Neto M.E. Holdings (TASE: NTO) chairman David Ezra has been arrested on suspicion of smuggling cash totaling €475,000 overseas. Ezra was released with restrictive conditions by the Jerusalem Magistrates Court, with the consent of the Israel Tax Authority.
The investigation against Ezra is being conducted by the Excise and VAT office in Jerusalem in cooperation with the excise inspectors in the passenger hall at Ben Gurion airport. Ezra is suspected of attempting to smuggle the money abroad.
According to the request to release Ezra from detention, during an examination by security staff of the Israel Airports Authority at Ben Gurion airport, during the Shavuot holiday, Ezra was caught before leaving the country for Greece with €475,695 cash in a suitcase that he had put into the hold of the aircraft on a flight to Greece.
Ezra was questioned this morning by the investigative unit, which said, "During questioning, he admitted that he knew of the obligation to declare taking money out of the country but he claimed that he did not declare the money because he did not know where to declare it when leaving the country." He added that, "the money was for paying building contractors who had worked on renovating a vacation home that he had bought in Corfu, Greece."
Asked about the source of the cash that was used to purchase foreign currency from moneychangers, Ezra claimed that he saved it up over recent years and withdrew cash from his private accounts.
In his request to be released Ezra said that he did not know any details about the moneychangers and did not present receipts or documents for purchasing the foreign currency.
Ezra is suspected of violating the Law for the Prohibition of Money Laundering and the VAT Law.
In the court proceedings for his release, Ezra's attorney Adv. Yoav Sananes said, "Mr. Ezra has served as chairman of Neto Group for more than 40 years. Throughout that period he has worked with integrity and there has been no blemish on his conduct. He is fully cooperating with the authorities."
Adv. Sananes added, "It is important to strenuously clarify that the aforementioned money is money that Mr. Ezra has paid tax on according to the law and this is a technical offense and nothing more."
Judge Amir Shaked accepted the request of the Tax Authority and instructed Ezra's release under restrictive terms including personal surety of NIS 500,000, third party surety of NIS 100,000 and an order preventing him from leaving Israel for 90 days.
Ezra has accumulated capital of more than NIS 700,000 in less than three years by selling shares and receiving huge dividends from Neto, although he remains the controlling shareholder in the food conglomerate.
Neto said, "The allegations for which Mr. Ezra was questioned are not connected to the company or his role in it. The company believes that there will be no impact on its business or activities."
David Ezra said, "The money was for payment of private business that was conducted abroad."
Presumption of innocence: It should be stressed that David Ezra is only a suspect and no indictment has been filed against him and he has the right to be presumed innocent
Published by Globes, Israel business news - en.globes.co.il - on June 6, 2022.
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