Israeli aide to Austrian chancellor also detained in money laundering probe

Austrian media reports that Tal Silberstein, an adviser to Austrian Chancellor Christian Kern, was among the suspects taken into custody in Israel on a battery of charges, including money laundering, obstruction of justice and bribery.

According to Austrian paper Oesterreich, reported that Zilberstein was also detained, and Kern’s Social Democrats issued a statement saying they will no longer work with him “after the legal accusations that have emerged out of Israel today.”

Silberstein has also worked as an adviser to former prime minister Ehud Olmert.

Police would not comment on the specifics of the current investigation, but confirmed that billionaire businessman Beny Steinmetz was among those arrested. They said they were “investigating a number of suspects since the morning on suspicion that they worked systematically with the main suspect in order to produce and present fictitious contracts and transactions, including in the field of real estate in a foreign country, for the purpose of money transfers and money laundering.”

The investigation was being conducted with “international cooperation,” they said.

Steinmetz controls mining firm BSG Resources and has a net worth estimated by Forbes of $1.02 billion, making him the 17th-richest person in Israel.

In December, he was ordered to remain under house arrest until January 2.

At the time, BSG Resources issued a statement calling the allegations against Steinmetz “baseless.”

— with agencies