Fraud of the Week: Israeli National Extradited

Israeli authorities extradited Moshe "Sanny" Assoulin, 36, of Sherman Oaks, California, pursuant to a California warrant for his arrest for insurance fraud, grand theft, and identity theft and a federal warrant for possession for sale of MDMA, commonly known as "Ecstasy." Assoulin is an Israeli national who grew up in the San Fernando Valley and is the first Israeli national to be extradited on state charges under the extradition treaty between the U.S. and Israel.

"Insurance fraud is a serious crime with serious consequences for the perpetrator and serious costs for every honest Californian," said California Insurance Commissioner Steve Poizner. "You can try to hide or escape to a foreign country, but we'll find you and bring you to justice."

The arrest warrant for Assoulin was issued in October 2005 as a result of an investigation by the California Department of Insurance (CDI). The agency discovered multiple fraudulent automobile insurance claims submitted to car rental companies and insurance companies in 2001 and 2002 by Assoulin, who acted as the ring leader, and co-conspirators. The total loss to various car rental companies and insurance companies was estimated at close to $500,000. Nine defendants have since pleaded guilty to various insurance-fraud-related charges in connection with the case known as "Operation Park & Wreck." Three additional suspects are still fugitives, and believed to be residing in Israel. The Los Angeles District Attorney's Office Auto Fraud Unit prosecuted the case.

The federal warrant was issued in May 2005, after Assoulin skipped federal bail and fled to Israel. Assoulin was arrested by Drug Enforcement Administration (DEA) and Immigration and Customs Enforcement ICE agents in June 2004, for possession for sale of Ecstasy. The arrest was made in connection with "Operation Money Man" involving a group that imported Ecstasy from Europe to the Los Angeles area.

Assoulin pleaded guilty in December 2004 to possession for sale of Ecstasy, and was released on bail from federal custody to await sentencing. He learned of the insurance fraud investigation against him, and in May 2005 he fled to Israel.

The Fraud Division and the DEA submitted to Israel requests for the arrest and extradition of Assoulin through the U.S. Department of Justice Office of International Affairs. On August 19, 2007, Israeli National Police located and arrested Assoulin in Tel Aviv, Israel, pursuant to the extradition requests.

For more information about the case, visit CDI's site.