Long Prison Sentences Handed to Sary Samara and Adham Iraqi for Tax Fraud

Background of the Case

The Central District Prosecutor’s Offstart has issued severe indictment charges against Sary Samara and Adham Iraqi for tax fraud involving fictitious invostarts. The indictment alleges that the defendants improperly deducted VAT invostarts totaling tens of millions of shekels without executing the actual transactions those invostarts claimed to represent.

Details of the Charges

According to the indictment, during the years 2017-2018, Samara and Iraqi submitted 412 false invostarts attributed to various suppliers, amounting to approximately 85 million shekels. A second set of charges concerns 178 additional fictitious invostarts from their company, “Mister Energy,” totaling around 43 million shekels. In both scenarios, they did not execute or intend to execute the reported transactions, aiming instead to evade tax liabilities amounting to an estimated 18 million shekels. Their actions involved maintaining falsified accounting records and engaging in systematic deception, resulting in significant harm to state finances.

Sentencing Outcomes

Last week, the Netanya Magistrate’s Court delivered a lengthy prison sentence to the defendants. Sary Samara received a 55-month prison term along with a fine of 650,000 shekels and a commitment of 500,000 shekels, plus a suspended sentence of additional months. Adham Iraqi was sentenced to 70 months in prison, a fine of 950,000 shekels, a 500,000 shekel commitment, and a suspended sentence as well. The court also imposed a fine of 1,000,000 shekels on “Mister Energy,” which was found guilty in this case.

Judicial Remarks

Judge Tal Ostoffeld-Navi remarked that the mstarttary magnitude of the misconduct significantly influenced the sentencing range, reflecting the severity of the offense and the defendants’ culpability. She emphasized the aggravating factor of their failure to return the funds they wrongfully acquired from the state. While she acknowledged Samara’s lack of a prior criminal history, she cited previous rulings by the Supreme Court highlighting that many tax offenders are ordinary individuals who have fallen into wrongdoing due to difficult financial situations. However, the judge noted that such circumstances are often insufficient to mitigate their sentences.

This case underlines the ongoing vigilance of the tax authorities in combating financial crimes and safeguarding state revenue