Etti Alon The Israeli banking industry changed
forever in April 2002 when Etti Alon walked into the police’s fraud squad headquarters. The
now-former deputy chief of investments at Trade Bank of Israel had a huge secret, one that she’d
been keeping close to her heart for half a decade. For five years, Etti had stolen 250 million
shekels to help pay off her brother’s gambling debts, and she was there to turn herself in.
The financial industry in Israel would never be the same. Etti’s actions single-handedly caused
the collapse of Trade Bank, costing Israel more than half a billion shekels in deposit insurance.
Since it was so easy for her to steal all that money, people lost all faith in small banks.
Regulations were changed, but the damage was done. People didn’t want to give their money to
smaller banks. They didn’t trust them. Seeing an opportunity, larger banks swooped in and acquired
these smaller shops, strengthening the financial monopoly they had over the country’s finances.
Even worse, Etti’s actions completely redefined the Israeli criminal underworld,
creating a huge power shift as criminals fought to claim the debts.
As soon as she turned herself in, the money started moving. It even reached as far as Los
Angeles, where a branch of the Israeli mafia ran a money-laundering business that processed
millions of dollars—millions of dollars stolen from Trade Bank—millions of dollars stolen from
the people of Israel. Abergil Family
The Abergil family had a vast, worldwide criminal empire in the early 2000s. Based in Israel,
they were led by Itzhak Abergil and his brothers Meir and Avraham after their brother Yaakov
was taken out. Their reach extended far past Israel’s borders throughout Europe and America.
They were known traffickers and were once among the top 40 illegal importers to the United States.
Their drug of choice was ecstasy, but the Abergil Family’s enterprise didn’t stop there either. They
had their hands in a lot of money-related crimes, including embezzlement, laundering, extortion,
controlling illegal casinos, and more. The Abergil Family specialized in money, including
how to get it and how to move it. At the height of their power, the Abergil family was thought to run
37 companies and own 48 properties and up to 56 cars. They had millions of shekels in assets, both
legitimate and illegal. Most of their funds had been embezzled from Trade Bank, thanks to Etti.
They were even known to take out people they didn’t agree with,
though official charges for these crimes were never brought against the family specifically.
It was their associates who took the fall the few times they were caught. (CTA to subscribe)
Jerusalem Gang The Abergil family may have been feared
and powerful, but they weren’t the only criminal organization in Israel. There was another big
player called the Jerusalem Gang, which was led by Gabi ben Harosh. They were known for giving out
business loans and then extorting those businesses when they failed to pay the loans back.
One of the Jerusalem Gang’s favorite “clients” was Ofer Maximov, Etti’s brother. The Jerusalem
Gang was the reason Etti started to embezzle funds from Trade Bank. She wanted to settle his gambling
debts. These illegal funds from Trade Bank were then laundered and invested throughout the world,
including a headquarters in Los Angeles. Gabi was thought to lead this branch, and once he
got caught, Gabi flipped on Itzhak and Meir, which led to the Abergil family’s downfall.
The brothers were arrested on Gabi’s information, and the relations between the Abergil family and
the Jerusalem Gang were strained. The in-fighting between these two groups would go on for years,
including an attempt to silence them for good. Two members of the Abergil Family tried to take
out Sam and Yossi Malka, who were leaders in the Jerusalem Gang. The police quickly responded,
and no one was hurt during this attempt, but others hadn’t been so lucky over the years.
Intercontinental Operation Gabi was under house arrest for two years before
he flipped on his former friends. He detailed how they moved money from Trade Bank in Israel
to the United States. Gabi was in charge of the lending bank in the states. They had partners who
helped them identify marked bills. Then they would extort them when they could not meet the terms.
They went to great lengths so that the money remained untraceable during the process. Gabi
kept the Abergil family informed of the balances and how the money arm of the syndicate fared. But
there was much more to the operation than just money. They also ran a huge narcotics ring,
specifically manufacturing, importing, and selling illegal substances. They would be
indicted for trafficking on top of money laundering and extortion.
Once they got caught, they were held accountable for a laundry list of crimes. But when they went
down, a lot of people went down with them. It wasn’t just Gabi and the Jerusalem Gang. There
were many other criminal organizations who had their hand in the goings-on of the Abergil family,
and soon they would see justice for their crimes. LA Bust
The arrest felt like a long time coming, but it had far-reaching consequences in the Israeli
crime world for years to come. In July 2002, the LA police executed a bust of three dealers.
They recovered millions of dollar’s worth of product, and took down many key players in the
criminal world. The operation took a massive chunk out of the Abergil Family’s inventory.
Together with the Malul brothers, the Abergil family helped move their product under any means
necessary. They partnered with a local LA street gang called the Vineland Boys for additional
protection. The Abergil family continued to grow their power, allying with more and more crime
families, despite the LAPD being onto them. The Abergil brothers partnered with the
Malul brothers to take out a dealer who attempted to steal from them. However,
they didn’t always jump to taking lives as a punishment. Sometimes, the family simply
tried to extort money from them. Regardless, it would take four more years for the law to
officially catch up to the Abergil brothers. An unidentified source named UC-9 talked to the
police to get the ball rolling, and their fate was sealed when Gabi was arrested.
Trade Bank The money that Etti stole from Trade Bank
found its way into the hands of many important and powerful business people in Israel and Los
Angeles, but it wasn’t the legal way they were used to. There was an entire criminal
network devoted to moving and using that money, getting it from Israel to the United States.
They identified people in need and approached them with an offer that was too good to be true.
Strapped for cash, these business people accepted the offer. They all knew they had to pay it back.
If and when they couldn’t, the Abergil family came in. They extorted these businessmen. They forced
them to give up their businesses and turn them over to the family. Some mortgaged their homes
to pay back the shekels they owed. Meir was in charge of this effort,
and Gabi was second in command. There was a lot of evidence tying both of them to these crimes,
including surveillance reports, phone calls, and photographs.
Police collected a mountain of evidence against them as they worked to build a case against the
Abergil family and their associates. Allure of Thrill
It wasn’t hard for the Abergil family to gain a stronghold in
Israel, even without the money from Trade Bank. Gambling is illegal in Israel, so many criminal
masterminds saw an opportunity to make a quick buck and meet a growing need for many people.
Sure, people can play the national lottery or participate in sports betting, but that’s not
enough for most. They want the thrill of slot machines; they want to watch roulette balls spin
around the wheel. They want to slam down a winning poker hand and rake in a giant pot of chips.
If that’s the case, they have no choice but to go underground to gamble in Israel. You can
also leave the country to play. For example, many people play on boats that are outside of
the state lines. They aren’t subject to the same rules and regulations on international waters.
If a person is caught gambling in Israel, the punishments are harsh. You could receive up to
three years in prison if you are organizing the game or one year if you are simply playing. There
are exceptions to the rule. For example, if you’re only playing with friends and family for fun,
you wouldn’t be arrested for criminal activity. However, the Abergil family wasn’t running “family
game night.” They and the Jerusalem Gang were more than happy to take advantage of people,
including Ofer and Etti. Ofer’s Problem
Ofer had a problem. There wasn’t an underworld casino that he didn’t visit in Israel. He even
traveled internationally to gamble, and he owed everyone a lot of money. It got so bad
that the criminal underworld bosses had a meeting to discuss his debts. Ofer owed about 100 million
shekels, and the various underworld gangs were all arguing to see who would collect.
It was settled on the Jerusalem Gang, but regardless, they all continued to extend
credit to him. The Jerusalem Gang placed him under their protection because they saw the
bigger picture. The more he gambled, the more they could squeeze from his sister. By the end,
they squeezed 250 million shekels out of Etti. But all good things come to an end, and when
Etti turned herself in, the cash flow immediately stopped. Unfortunately for Trade Bank, the damage
was already done. That money had already made its way to the gray market, which was what funded
the underworld. Ofer’s debts and the subsequent repayments were so large that they fundamentally
redrew the map of organized crime in Israel. Missing Millions
Millions of shekels are still missing, floating around on the gray market. At one point,
the National Fraud Investigation Unit only recovered 38 million shekels from the shadow
market. It is hard to trace exactly where the money went or how to get it back.
Benny Revizada rose to new heights as a result of the embezzlement.
He received upwards of 144 million shekels, though he didn’t always receive it in cash. Sometimes,
instead of money, Benny got bank checks. He then used those checks to purchase real estate, notably
apartment buildings, with other investors. He also bought part of a soccer club. He opened an
unregistered bank that was known for cashing checks and loan sharking.
Bank officials weren’t left out of the restitution. Board members and officials
were required to pay the NIS 18 million shekels, though some were covered by the insurance payouts.
Trade Bank’s auditors were ordered to pay the NIS 20 million for not knowing what was going
on. After all, that’s their job. They either knew and did nothing, or were so incompetent
that Etti’s scam flew under their radar. Most of the stolen money passed through
so many hands that it was hard to track down. As a result of Etti’s actions, the bank collapsed.
Too much money went missing, and nobody trusted the bank enough to put money in again.
Aftermath In the end,
Etti and her brother Ofer paid for their crimes. Etti received a 17-year sentence.
She petitioned for early release, and though the state initially denied her request,
it was eventually granted. They didn’t want to grant her early parole because her actions not
only caused the bank to collapse but it also damaged Israel’s overall financial structure.
Her actions sparked gang wars and power struggles among the criminal underworld for years to come.
In the end, Etti ended up serving 14 and a half years for her role in the embezzling scam.
She also needs to pay a 5 million shekel fine. Ofer also received early release because he was
not found to be a danger to the public. Originally sentenced to 18 years, Ofer only served 17 years.
Etti and Ofer may have paid back the money, but the embezzlement scam started a domino effect,
leading to the downfall of the largest criminal enterprises in Israel.
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Let us know in the comment section what you’d rather do:
live a life on the run with $10 million dollars or turn yourself in to do 8 years
in prison but you’d still have the $10 million when you get out of prison because you hid it!