Ministry of Justice Revokes Security Company License Over Protection Racket
Israel's Ministry of Justice revoked the license of a security company over extortion and money laundering, cracking down on protection rackets used as a front for organized crime.
The Ministry of Justice has revoked the license of the security company "Alufim BaBitachon Ltd." and the license of its security organizer following criminal and intelligence information linking the company and its organizer to extortion (protection racket) and money laundering activities. An indictment was also filed against the company and those involved by the Northern District Prosecutor's Office for extortion and money laundering offenses.
Extortion and Fake Security Services
According to the findings, company clients reported that they were forced to pay for security services under threat of property damage if they refused. In many cases, despite the payments, no security was actually provided at construction sites. These payments effectively served as a "tax" collected by criminal territorial bosses, known in criminal slang as "raisims".
"The payments to the security companies effectively constituted a tax collected by criminal territorial bosses, known in criminal slang as 'raisims'."
According to the indictment, the defendants actively approached contractors and business people, presented themselves as security company representatives or as those in charge of the area, and dictated contract terms and payments exploiting the victims' fears for their businesses.
Administrative Enforcement and Crackdown
The decision was made by the Private Investigators and Security Services Licensing Committee at the Ministry of Justice, following administrative evidence presented by authorities. The procedure was accompanied by the Civil Enforcement Unit at the State Attorney's Office, the Northern District Prosecutor's Office, and the Israel Police.
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Revocation of licenses for security companies involved in extortion
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Joint effort by the Ministry of Justice and Israel Police
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Crackdown on financial cover for organized crime
The Ministry of Justice emphasized that administrative and economic enforcement actions constitute a crucial pillar in combating the protection racket phenomenon, which has become a severe nationwide issue utilizing security companies as a front for illicit financial activities.
