The National Fraud Investigations Unit detained attorney Israel Perry on Monday on suspicion that he was attempting to flee the country.
Perry was sentenced to 10 years in prison after being convicted of stealing millions from Holocaust survivors.
The police stated that the attorney was arrested in Tel Aviv Monday afternoon after information that he intended to flee his sentence was received by officers.
The statement added that the information was extremely reliable, but Perry's attorney denied the allegations.
He told Ynet that "Israel Perry reported to the police as he has done every Monday and Wednesday in order to show his presence. When he got there he was arrested and brought to the police station in Bat-Yam without explanation. The arrest is an attempt by the prosecution to bypass the court's decision."
The court has recently rejected Perry's appeal. He was convicted of aggravated fraud, embezzlement, obstruction of justice and violation of insurance laws in October of 2007, after a six-year trial. He was sentenced to 12 years in prison at first, but the sentence was later reduced to 10.
Perry was found guilty of cheating Holocaust survivors who were represented by the Association for Implementing the Social Security Covenant (AISSC), which he headed, out of hundreds of millions of Deutsche Marks.
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