Security Company's License Revoked Over Suspected Protection-Racket Payments
Israel's Ministry of Justice revoked the license of the security company Alufim BeBitahon Ltd. and the license of its security organizer. The decision is based on criminal and intelligence information allegedly linking them to the collection of protection money and money laundering.
Key facts
- •Company: Alufim BeBitahon Ltd.
- •Decision: The security company's license was revoked
- •The security organizer's license was also revoked
- •Charges: Collecting protection money and money laundering
- •Prosecution: Northern District Attorney's Office
- •The case number and date of the decision were not specified in the source
What the Company Is Suspected Of
According to the information reviewed by the Licensing Committee, clients were forced to pay for security at construction sites under threat of damage. In several cases, no security services were actually provided after payment. The committee concluded that the company served as an accounting front for criminal activity in various parts of the country.
The Indictment
The Northern District Attorney's Office filed an indictment against the company and related parties for collecting protection money and money laundering. According to the indictment, they approached contractors and businesspeople themselves, presented themselves as employees of security companies or as being responsible for a particular area, and agreed on payments with them. The source does not report a conviction or any other final outcome of the criminal proceeding.
How the Decision Was Reached
The decision was made by the Licensing Committee for Private Investigators and Security Services, which operates within the Ministry of Justice's Professional Regulation Unit. The committee reviewed the administrative evidence presented to it and held a hearing attended by the company and its owners. The proceeding was handled by the Civil Enforcement Unit of the State Attorney's Office, the Northern District Attorney's Office, and the Ministry of Justice's Legal Department, in cooperation with the Israel Police.
Additional Restrictions
Several months earlier, the Ministry of Labor suspended the company's licenses to operate as a manpower contractor and as a service contractor in the fields of guarding, security, and cleaning. The Ministry of Justice views licensing and economic measures as part of the effort to combat the use of legitimate security companies as fronts for illegal activity.
What this means for you
The license revocation shows that the regulator may halt a security company's operations on the basis of administrative evidence, without waiting for a verdict in the criminal proceeding. For contractors and businesspeople, this also means that a formal contract and security invoices do not in themselves prove that payment demands are lawful or that the service was actually provided.
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