David Appel and Michael Kleiner questioned over alleged multimillion-shekel real estate concealment

Police unit Lahav 433 has identified contractor David Appel and ex-MK Michael Kleiner as key figures in an inquiry into hidden property assets.

General view of the Lahav 433 police unit headquarters in the city of Lod on August 2, 2026.

(photo credit: AVSHALOM SASSONI/FLASH90)

BySARAH BEN-NUN

AUGUST 5, 2026 09:17

Updated: AUGUST 5, 2026 09:36

Businessman Dudi Appel and former Likud parliamentarian Michael Kleiner underwent questioning this week as part of a police inquiry into the suspected hiding and shifting of real estate assets valued at tens of millions of shekels, following clearance for their names to be released on Wednesday.

Appel, who entered bankruptcy proceedings in 2012, faces suspicion of concealing ownership in multiple properties and moving assets while required to report all holdings fully to insolvency officials.

Kleiner, who previously served as an MK and now leads the Likud internal court, joined Appel and other business figures for questioning at the Lahav 433 National Economic Crime Unit on Monday.

Authorities allege the individuals worked methodically to obscure their stakes from regulators and secure substantial funds. Officers confiscated assets that may face seizure should the matter proceed to charges and receive judicial approval.

Reports indicate investigators believe Appel transferred properties at below-market rates to associates, who later resold them at full value or higher before returning proceeds to him in exchange for compensation.

Reports further suggest Kleiner is suspected of providing assistance to Appel. All claims continue under active review and remain unproven in any court.

Appel rejected the accusations, informing investigators he had completed no property sales since the start of his bankruptcy case in 2012 and claiming authorities were targeting him unfairly.

After departing the Lahav 433 facility, Appel charged unnamed parties with trying to extract funds from him on two occasions and warned they would face severe consequences.

Legal representative asserts prior examination of matter

Appel's lawyer, Efraim Dimri, stated the inquiry revisits events already reviewed roughly 14 years earlier.

"My client struggles to grasp why enforcement bodies have opted to reopen identical incidents and target him once proceedings in his matter concluded," Dimri noted.

The probe operates jointly through Lahav 433's National Economic Crime Unit and the Justice Ministry division handling insolvency-related offenses.

Appel under bankruptcy since 2012, completed prison term

Appel has remained in bankruptcy since 2012 due to debts reaching tens of millions of shekels. In October 2025, the Tel Aviv District Court declined to advance his fifth creditor arrangement proposal, citing insufficient details on funding sources.

He received a three-and-a-half-year prison sentence in 2010 after conviction for bribing local officials and a senior Israel Land Administration employee to further his business goals. The current allegations focus on his actions during the subsequent bankruptcy period.