Intel reaches secret settlement in $1 million fraud lawsuit with ex-employee and supplier
Allegations of fraudulent orders and misclassified payments resolved privately, with terms undisclosed.
Intel’s fraud lawsuit against a former employee and a supplier has ended in a settlement. Calcalist has learned that Intel’s Haifa operations recently reached an agreement with Natalia Avtsin, a former employee, and Yafim Tsibolevsky, a former supplier. The terms of the settlement remain confidential, and the case has been formally closed.
Intel alleged that the two were involved in a fraud scheme totaling approximately NIS 3 million (approximately $1 million), which the company discovered after Avtsin’s dismissal. According to the company, Avtsin ordered products from Tsibolevsky that were never delivered, allegedly in coordination between the two.
In a lawsuit filed in May 2025 with the Haifa District Court, Intel detailed its claims. According to the filing, Avtsin would request price quotes from Tsibolevsky via email and present them to her supervisor for approval. After receiving approval to proceed with the purchase using company funds, she allegedly reclassified the payments, from purchases of components to payments for services, without the knowledge of company managers.
Intel Israel explained that service payments do not require a signed delivery note or confirmation of receipt by another party within the company, unlike component purchases. As a result, Tsibolevsky could submit invoices and receive payment without further scrutiny.
“If the defendant [Avtsin] had indicated the purchase was for ‘services,’ her manager would not have approved it,” Intel wrote in the filing.
Intel alleges that if the transaction had remained classified as a component purchase, it would have required validation from the company’s warehouse, effectively preventing the fraud.
Further raising suspicion, nearly all of the invoices submitted by Tsibolevsky closely matched Avtsin’s personal order limit of $20,000 per transaction, suggesting deliberate planning. “Miraculously, most invoices issued by Tsibolevsky at Avtsin’s request were stated in shekels at the precise value of her purchasing threshold,” the lawsuit notes.
Intel had sought restitution of the full embezzled amount, along with any profits the defendants earned from the scheme.
These allegations were not tested in court, as the parties reached a settlement before proceedings advanced.
Avtsin was fired in November 2024 from her role overseeing subcontractors and supplier procurement. Her dismissal, Intel claims, was unrelated to any suspected misconduct and stemmed from broader workforce reductions due to a slowdown in operations. At the time, the company had no indication of wrongdoing.
Calcalist first revealed Intel’s claims in May 2025. The settlement was approved by Judge Alon Esperanza.
Attorney Tzachi Lasry, who represented the defendants, told Calcalist: "The defendants presented their arguments to the plaintiff and its representatives outside the courtroom. Following discussions between the parties, a settlement was reached and approved by the court, bringing the case to a close."
