A 1980 police investigation of Israeli Minister of Religions Aaron Abuhazeira for fraud and bribery ignited far-reaching social and political tensions that would reshape religious authority in Israel. The scandal, centered on allegations of fraudulent subsidies to non-existent yeshivot and complex kickback schemes, rapidly evolved into a symbolic battleground for Israel's deep-seated ethnic and religious divisions. Through observational analysis and contemporary reporting, the investigation reveals how Abuhazeira's supporters from the Edot Hamizrah (Oriental communities) interpreted the charges as evidence of systematic discrimination, while Chief Rabbis' controversial halakhic rulings against witness testimony further strained secular-religious relations. The controversy exposed stark socio-economic disparities: Oriental Jews constituted over fifty percent of Israel's population but only fourteen percent of university graduates. Beyond its immediate legal implications, the scandal inflicted lasting damage on both the religious political party Mafdal and Jewish religious authority in Israeli society, while amplifying long-standing ethnic and socio-economic grievances that continue to shape Israeli politics and society today.