The Tel Aviv District Court ordered the temporary seizure of $4.9 million from Arcadi Gaydamak on Sunday, as part of an investigation of the Russian-born billionaire for money-laundering.

Judge Uri Shoham said the police had moved toward completion of their probe. He said there was enough evidence to seize the money but he was not expressing an opinion on whether there should be an indictment of Gaydamak or some other form of legal action.

Two weeks ago the Tel Aviv district prosecutor asked the court to seize the funds, which the state was holding as bail. The prosecutor's request suggests that an indictment of Gaydamak is in the offing.

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Last month, Gaydamak announced the formation of a social movement he said could be turned into a political party at any time.

A secret investigation was launched against him and others in 2002 on suspicion of laundering $50 million at the Hayarkon branch of Bank Hapoalim in Tel Aviv.

The investigation came out into the open in November 2005, and Gaydamak was released on bail.

In November the state asked the court to extend the seizure of Gaydamak's funds for another three months, which ended in February. Judge Shoham ordered the money seized for a period of 90 days.

Gaydamak's attorney, Shlomo Ben-Ariyeh, argued that the money should not be taken because funds that had been taken as bail under the provisions of one law were now being held under the clause of the money-laundering law.

Judge Shoham ruled that the state could seize the money temporarily, and that as opposed to property seized due to criminal activity, there was no need to determine if a crime had been committed before seizing it.