Israel’s Civil Enforcement Unit filed a lawsuit Monday in Beersheba District Court seeking over three million shekels from Ohel Yosef, a haredi charity in Ashkelon. The suit, filed on behalf of the Education Ministry, alleges the organization and three of its officials fraudulently collected government funding meant for a religious school by reporting hundreds of students who didn’t exist.
The lawsuit details how the scheme worked over several years: The defendants systematically filed false reports with the Education Ministry claiming the institution had over 600 students. Inspections at the facility told a completely different story—only a few dozen students were actually there. Investigators also found that the building where classes supposedly took place physically couldn’t hold the massive number of students reported.
Prosecutors describe the case as “a series of events including false representations, fraudulent reports, breach of commitments, and gross negligence.” Following the findings and a hearing process, the Education Ministry’s grants committee ordered the charity to return the funds. The current lawsuit aims to enforce that decision and recover the public money that was stolen through fraud, according to the state.
Alongside the lawsuit, the court granted prosecutors’ request and imposed temporary seizure orders on the defendants’ assets, including vehicles, bank accounts, and insurance policies. The court ruled there’s reasonable concern that without the seizure orders, assets would be hidden or transferred. Prosecutors say they’ll pursue all civil remedies to recover the funds for the public treasury.