Thursday, January 26, 2012

Israeli Dead Sea Industry fraud scheme

Rightrdia got an exclusive  document from Wayne Madsen Reports on what appears to be illegal Israel organized crime activity in the US. 

The Dead Sea Industry operates kiosks in malls and sells products that may not have originated in Israel. Its workers are paid under the table and the Dead Sea corporation files bogus payroll documentation nor does the company pay federal income tax. 

Dead Sea cosmetics are a billion dollar industry.  Also, see the Wiki leaks reference which is attributed to Bradley Manning. 

After young men and women leaving the Israel Defense Force have used up their vacation visas, they try to travel back to Israel with approximately US  $8000 in undeclared cash. One couple was apprehended trying to leave the US with $26,000.  

Federal authorities suspect that Israelis were using the Dead Sea Industry kiosks as intelligence fronts in the same manner that Israelis were using door-to-door art sales as covers a decade ago.

The National Counterintelligence Center (NCIX) stated in a report issued in March 2001 that, ‘In the past six weeks, employees in federal office buildings located throughout the United States have reported suspicious activities connected with individuals representing themselves as foreign students selling or delivering artwork.

Employees have observed both males and females attempting to bypass facility security and enter federal buildings.’ The report was temporarily removed from the NCIX web site.

An informant had information  alleging that a key Dead Sea company is connected to organized crime (OC).

The Assistant Regional Security Officer (ARSO-I) and Federal Police Unit (FPU) subsequently interviewed this informant; the ARSO-I's report of this interview states (NOTE: Best guess on the ARSO and FPU acronyms):

The SUBJECT stated that s/he is in possession of computer disks with all of this company's accounts, money totals, smuggled bulk cash from the United States to Israel and has a complete understanding of the alleged illegal activities to include the employing of illegal workers, suspected drug smuggling, money laundering, intimidation, threats, extortion, and tax evasion. 

The SUBJECT also claimed that this company is allegedly owned by a major organized crime family in Israel that has threatened SUBJECT'S life, extorted money from SUBJECT, and has sent people to physically assault SUBJECT." Due to the ongoing criminal investigation in the United States, no additional details can be released at this time.

The ARSO-I's report said development of a source who informed him that one of the larger corporate groups was manufacturing soaps in the United States using possible illegal workers from Central America and then selling the product as from the Dead Sea Industries as made in Israel.

Another likely source for Dead Sea products is China, which has both "dead seas" and cheap labor. 

Last but not least, ICE Rome (Immigration and Naturalization Service) reported to ARSO-I and Tel Aviv that they suspect these companies may be importing soaps and creams in bulk to Israel and labeling them here before shipping to the United States using Israel's "most favored trading nation" status to save money.

Transport of cash from the United States to Israel has long been a concern of FPM and ARSO-I as it not only implies illegal employment, but also money laundering, and thus, potential organized crime connections to the industry.

Information gathered from Customs' Form I275s and from Customs Border Patrol (CBP) show that Israelis, including relatives or friends of illegal workers, have been caught outbound transporting large sums of money back to Israel. In one case, a young Israeli couple was discovered transporting over USD 26,000 for their illegal worker friends to Israel.

The couple had lied about the amount to prevent the money's seizure. Further, ARSO-I has discovered through a source that young Israeli workers returning to Israel have been tasked with carrying back money for the company. These workers are then met by a contact in Israel; the money is collected at or near the airport and is delivered to a local company representative.

At Newark, Israelis regularly have been caught by its Outbound Currency Enforcement Team (OCET). Generally, these Israelis have been in the United States for four to six months and are carrying about USD 8,000 to USD 9,800, just under the reporting limit. 

In addition to carrying cash for the companies, these workers also have been known to wire some of the money to Israel or have someone carry some of it home for them or buy items with their illegal earnings such as laptops, i-Phones, clothing, etc.

OCET has long-term lookouts for these cash-carrying individuals and reports those who admit to and/or have proof of working illegally in the US to the US Tel Aviv embassy. 

The Tel Aviv Fraud Prevention Manager (FPM)then evaluates these individuals for 214B visa revocations and adds corporate intel gleaned by OCET from these cases to a Dead Sea Excel files. Embassy Tel Aviv welcomes submissions from other OCET teams.

There is a catch-22 situation in which CBP knows that Israelis had worked illegally, with or without proof of employment and/or admission of unauthorized employment.

If the Israeli declares under $10,000 or over that amount--as long as they declare, they are free to return to Israel. Per Newark's OCET's experience and TECS records.  

Newark estimates that roughly 800 Israelis who carried $5,000 or more and stayed four to six months were either stopped, interviewed and/or had outbound examinations in CY 2009.

The scale of this cash transport is not small-for just one port of entry (POE): 800 Israelis multiplied by $5000 minimum, equals a lot of money--at least $4 million!

The Dead Sea industry is continually adapting to new economic opportunities in addition to playing their corporate "games."

Prior to the establishment of the Dead Sea Industry, Israelis were known to work illegally for moving companies. Though not as widespread as the Dead Sea industry, another company, B1B2 locksmiths, also are of concern.

Tel Aviv's dedicated, motivated fraud team and ARSO-I are working hard to stay on top of
fraud trends--it is not easy. Tel Aviv greatly appreciates its close ties with numerous Department of Homeland Security (DHS) agencies and officers--together we form part of the "global" effort to combat fraud within this fraud-riddled industry.

This is a list of some of the Israeli companies that may be involved in the illegal activity described above:

STS (majority user and has several TECS records), AK Global 
Investments and Management LLC, KIT, Gaya Inc, Global Spa LTD, Ela
Marketing LLC, Tal Yosifun LTD, JNS Global Israel LTD, Sol
Enterprise Israel LTD, Market Trade LTD, Mor Universal Management
Consultants, and Global Market Trade LTD (formerly JG Cosmetics
LTD). [NOTE: Gaya Inc and Sol Enterprise Israel LTD have residential

Known US counterparts linked to above Israeli comapnies: 

A&B United, Coral Cosmetics, E-Marketing, Enias Beauty, Everesteam, 

Feel Free LLC, Gill Cosmetics, Gizbo Trading, JNS Global, Lali
Beauty (aka Cart Planet), Libra LLC, LMD 4 Florida, Lucidity
Enterprises, Mall Security Enterprises, MDS, Micaella, Nine DEC,
Sound Creation, Spa to Go (MI), Stanga and Suns Inc. 

graphic courtesy of:

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