Schnitzelia Chain Owner Suspected of $19 Million Tax Evasion
Restaurant chain owner Yehuda Almozlinos and businessman Gal Dvir Alphabet face allegations of $19M tax evasion through undisclosed foreign accounts and financial deception.
Yehuda Almozlinos, owner of the popular Israeli restaurant chain Schnitzelia, and businessman Gal Dvir Alphabet are under investigation for allegedly evading taxes amounting to $19 million. According to Israel’s Tax Authority, the two are suspected of operating through undisclosed foreign bank accounts and deceiving tax and financial institutions.
Until now, a court-imposed gag order had prevented the publication of the suspects’ identities, but that restriction was lifted today by the Tel Aviv Magistrate’s Court.
The investigation is being led by the Tel Aviv Tax Investigations Officer, in coordination with local tax authorities in Tel Aviv and Netanya. Officials believe the alleged offenses were carried out systematically over time, involving fraudulent reporting and concealment of income through offshore financial channels.
Gal Alphabet, who is known for his work in business loans and capital fundraising, had already been under investigation since May 2021 over suspicions of misusing COVID-19 relief funds. In 2023, he was convicted in a plea deal on charges of aggravated theft and tax evasion.
Though the current investigation had been conducted covertly for several months, it became public recently when tax investigators raided the homes and offices of the suspects. Both men were detained for questioning and later released under restrictive conditions.
The court set bail for each suspect at ₪700,000 (approximately $190,000), and prohibited them from leaving the country for 180 days. In court, the defendants denied any wrongdoing, framing the matter as a civil dispute based on professional advice they received.
Attorney Ofer Rahmani, representing Almozlinos, stated during the hearing:
“My client had no involvement in the alleged events. He simply signed documents based on legal advice. He has reported everything transparently and there is no reasonable basis for criminal suspicion. He pays substantial taxes and runs a large business. The damage to his reputation is severe, whereas the alleged public harm is minimal."