Neto Malinda Sues Former Sales Agent Over 330,000 Shekel Fraud Scheme
Food giant Neto Malinda has filed lawsuits demanding 330,000 shekels from a former sales agent accused of operating a sophisticated credit fraud scheme over 13 years to divert meat products.
Neto Malinda, one of Israel's leading food companies controlled by Adi Ezra and David Mesasa, has filed two lawsuits against a former sales agent who worked at the company for 13 years, alleging a sophisticated fraud scheme involving approximately 330,000 shekels.
According to the lawsuits filed with the Labor Court and the Jerusalem Magistrate's Court, the employee devised a systematic method to bypass company controls by issuing false credits for price differences or nonexistent product returns without notifying the clients. The resulting credit balances were then used to order large quantities of meat, poultry, and fish, which were diverted to external destinations.
The fraudulent activity came to light during an internal audit that revealed unusual and illogical supply orders, including meat shipments billed and credited for a dairy bakery. Another prominent example involved a well-known Jerusalem hotel, where the agent created a fictitious delivery branch in Bnei Brak with an address corresponding to a synagogue.
Through this phantom delivery point, the agent generated tens of thousands of shekels in credits for the hotel, allowing him to withdraw expensive goods without the hotel's knowledge. During his pre-termination hearing, the agent admitted to the actions through his counsel, claiming he operated in a gray area to assist the needy by distributing food products as charity to underprivileged families.
The financial dispute and the allegations of extensive embezzlement will now be determined by the judicial courts.
