Cryptocurrency businessman Moshe Hogeg, who is suspected of playing a key role in a massive fraud scam, was arrested Tuesday for not paying his court-set bail.
Hogeg was detained because he did not provide the NIS 10 million ($2,913,208) bail money the court had set, part of a series of financial guarantees he was ordered to deposit.
Police said he would be brought for a remand hearing at the Rishon Lezion Magistrate’s Court.
Hogeg’s attorney Moshe Mozar said it was an unjustified arrest as there was a hearing in his client’s affairs scheduled for Wednesday anyway “but police decided to preempt and arrest my client specifically this morning.”
Channel 12 later reported that Hogeg was released with restrictions. A police source told the network that the force had acted properly since Hogeg had not fulfilled his obligations.
Hogeg was arrested late last year for alleged sex crimes and cryptocurrency fraud. He was held for nearly a month before being released to house arrest on bail and other financial guarantees amounting to around NIS 70 million (more than $20 million) in total.
He was arrested along with seven others on suspicion of involvement in alleged massive fraud. He is also suspected of sex crimes, including trafficking and underage prostitution offenses, as well as carrying out indecent acts, sexual harassment, operating a location for the purpose of prostitution, invasion of privacy, bringing an individual into prostitution, and supplying drugs and alcohol to underage girls.
Hogeg has denied all the accusations against him and has said that he was treated cruelly while in police custody to extract information, claims that experts have said are valid in many cases.
Last month, a fan club for Beitar Jerusalem FC announced that the team signed a deal to purchase the club from Hogeg, its owner.
Under the deal, some NIS 12 million (over $3.5 million) that will be raised by fans will go toward reducing the team’s deficit and for potential recruits of new players who can keep the team competitive.
Hogeg and the fan club agreed that the funds will not go toward paying off debts that are not strictly connected to the team.