Lahav 433's National Unit for the Investigation of Economic Crime, together with the Justice Ministry's National Insolvency and Economic Rehabilitation Investigations Unit, on Monday detained for questioning a former MK, a well-known contractor, and several businessmen on suspicion of involvement in a large-scale real estate fraud scheme.
According to the report, the MK in question currently serves in a senior position within the Likud movement.
According to investigators, the contractor, who has been in bankruptcy proceedings since 2012, concealed his ownership rights to real estate assets worth tens of millions of shekels and transferred assets under his control in violation of his legal obligation to disclose them as part of the bankruptcy process.
The investigation found evidence suggesting the properties were sold to associates at prices significantly below market value before being resold to third parties at full market prices. Investigators suspect the proceeds were funneled back to the contractor, while those involved received financial compensation for their role in the scheme.
Police said the findings of the investigation point to a "sophisticated and systematic" method of operations intended to conceal assets from authorities while generating profits worth tens of millions of shekels.
As the investigation became public, officers seized extensive assets as part of preparations for possible forfeiture proceedings.
The investigation is ongoing.