Yehuda Almozlinos, owner of popular food chain “HaSchnitzelia,” and businessman Gal Dvir Applebom were arrested on suspicion of embezzling and evading $19 million in revenue for the chain, the Tax Authority announced on Tuesday.
The pair is suspected of using overseas bank accounts to commit fraud against both the Tax Authority and other financial institutions, according to the authority.
Applebom works with capital raising and business loans, and Almozlinos has owned and operated “HaSchnitzelia" for the past 15 years.
Following an ongoing covert operation, the Tax Authority publicized the investigation.
Law enforcement authorities have searched both homes and brought the suspects to the offices of the investigative unit for further questioning.
No further information released yet
Though the Tax Authority has not released further information at this point, both of the suspected embezzlers were arrested and then released on restrictive terms by the Tel Aviv-Yafo magistrate court.
Applebom has been involved with accusations of fraudulent behavior before, as an investigation was opened against him in May 2021. He was suspected of embezzling coronavirus grants at the time and, in May 2023, “he was convicted as part of a plea bargain of aggravated theft and tax evasion.”
HaSchnitzelia was founded in 2004 as an independent schnitzel restaurant, expanding in 2010 when Bnei Dror native Almozlinos purchased the chain. There are now over 50 branches across the country, though the fate of the restaurant remains to be seen as this case progresses.