Former Prime Minister Ehud Olmert has been named by police as the chief suspect in a real estate scandal which some have called the biggest bribery scheme in Israel's history.
The nation's fraud unit also arrested former Jerusalem Mayor Uri Lupolianski Wednesday on charges that he accepted more than $3 million Israeli shekels ($ 1.2 million) in bribes and was involved in money laundering.
Olmert canceled an overseas trip this week to return to Israel and answer questions in what is being called the Holyland real estate project. Officials suspect that Olmert took thousands of dollars in bribes to approve several construction projects in and around Jerusalem.
One Jerusalem council member says the Holyland case is "just the start" and urged officials to look into other big building projects for evidence that people in authority received kickbacks.
The Jerusalem Post and The Media Line contributed to this report.