Kiosk King Katz Caged: 7 Years for Fraud & Money Laundering

NEWPORT NEWS, VA – Eyal Katz, 38, a citizen of Israel, is heading to federal prison after being sentenced to seven years for orchestrating a brazen immigration fraud and money laundering operation. Katz received the sentence today, along with three years of supervised release, a $20,000 fine, and a forfeiture order for assets linked to the scheme. The case exposes a calculated effort to exploit foreign workers for profit, leaving a trail of deceit and illicit funds.

Federal investigators revealed that Katz, operating from Tel Aviv, Israel, masterminded the recruitment of over 140 Israeli nationals, luring them to the United States under the guise of B-2 visitor visas. These individuals weren’t here for tourism; they were destined for grueling work at RASKO, a network of mall-based kiosks peddling Dead Sea Salt products across Virginia, Georgia, Pennsylvania, and New Jersey. Katz and his co-conspirator, Omer Gur, provided basic housing and transport, essentially trapping workers in a cycle of illegal labor.

The scheme ran from 2011 to the present, with RASKO raking in over $14 million in kiosk sales between 2012 and 2014 alone. But the money didn’t stay in the U.S. Millions were funneled back to Israel-based accounts, including those controlled by Katz, and used to fuel the operation – covering lodging, travel, kiosk rentals, and other expenses. This wasn’t a legitimate business; it was a sophisticated money laundering operation disguised as retail.

The investigation, a joint effort by the U.S. Attorney’s Office for the Eastern District of Virginia, the Department of Labor’s Office of Inspector General, the FBI, ICE Homeland Security Investigations, and the Diplomatic Security Service, has yielded significant results. To date, nine of the ten defendants charged in the case have been apprehended, and Katz is the ninth to admit guilt. Gur’s status remains unclear. The remaining defendant is still at large.

U.S. Attorney Dana J. Boente made it clear this case highlights the importance of tackling immigration and financial crimes. “This sentencing sends a strong message that those who exploit our immigration system and launder money for personal gain will be held accountable,” Boente stated. The prosecution was handled by Assistant U.S. Attorneys Brian J. Samuels, Lisa R. McKeel, and Kevin Hudson.

For those seeking further details, a press release is available on the U.S. Attorney’s Office website for the Eastern District of Virginia. Court documents and case information can also be found on the District Court website or through PACER, searching for Case No. 4:16-cr-17. The Grimy Times will continue to follow this case and report on any further developments as they emerge. This case serves as a stark reminder that even seemingly small-scale operations can be part of a larger network of criminal activity.