Court ruling10/16/2026

Court Rejects Police Appeal Against Release of Kfar Saba CEO

The Lod District Court rejected the police appeal and ordered that Sagi Chen, CEO of the Kfar Saba Municipality Economic Company, be placed under house arrest. He is suspected of involvement in the “Road to the Village” corruption affair, but Chen denies committing any offenses.

Key facts

•Court: Lod District Court
•Judge: Yaakov Shepsar
•Person involved: Sagi Chen
•Restrictive measure: house arrest
•Investigation: the “Road to the Village” affair
•The case number and the exact date of the decision are not specified in the source

What Chen Is Suspected Of

Sagi Chen was arrested together with other people involved in the investigation, including Kfar Saba Mayor Rafi Saar and his wife, Meital. Investigators from the National Fraud Investigations Unit (YAHALOM) in Lahav 433 view Chen as one of the central figures in the alleged bribery affair. He is suspected of accepting bribes, fraud and breach of trust, money laundering, conspiracy to commit a felony, obtaining something by fraud, and tax offenses.

The Dispute Over the Passwords

Chen refused to provide the passwords to the phone and computers seized during the search. His defense attorneys, Shashi Gaz and Bar Aslan, explained that the devices may contain privileged conversations and client materials remaining from the period when he worked as an attorney. Police representative Ilan Yanko told the court that the search warrant for the computer materials is limited and does not cover the period when Chen practiced law; another option is to transfer the extracted materials to the court so it can determine whether they may be decrypted.

Why the Court Released the Suspect

Despite his refusal to provide the passwords, the Lod District Court did not accept the police appeal and left in place Chen’s release to house arrest. The police acknowledged that he is generally cooperating with the investigation. The source does not detail Judge Yaakov Shepsar’s full reasoning and does not state the conditions or duration of the house arrest.

The Defense’s Position

Chen’s attorneys argue that the arrest was used to pressure him and obtain testimony against the mayor and his wife. According to the defense, Chen received nothing and acted lawfully in the course of his duties. The police stated that a possible incident related to an attempt to recruit him as a witness had ended and does not serve as grounds for extending his detention.

What this means for you

Refusing to provide a password for a seized device does not, in itself, require continued detention: the court examines the overall need for detention and the progress of the investigation. If a device may contain materials protected by attorney-client privilege, investigators and the court may impose restrictions on the search or conduct a separate judicial review of the materials. The decision does not end the investigation and does not mean that Chen has been acquitted.

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Case analysis based on court rulings