Police arrested 28 people Wednesday on suspicion that they defrauded the bottle recycling company "ELA", cheating them out of millions of shekels. The arrests come at the end of six-month investigation that included the use of an undercover agent.

Those arrested are suspected of committing a number of crimes, including blackmail, bribery, assault, arson and tax evasion.

The investigation, which was led by the Police Economic Crimes Unit, raised suspicions that underworld figures had managed to swindle "ELA" out of millions of shekels.

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Police also suspect that the money was then laundered in order to avoid paying taxes.

Police say that the two main suspects allegedly reported to the recycling company that they had collected many more bottles than they actually had, which in turn enabled them to receive a 3 agorot bonus on each bottle.

The suspects allegedly managed to fool the company by enlisting the drivers who transport the bottles to the recycling plant, as well as their supervisors, by bribing, blackmailing, threatening and assaulting them.

The undercover cop was planted as a supervisor who refused to cooperate with the suspects and accept a bribe. After he had refused to comply, the suspects threatened him, caused damage to his car and in the end, set it on fire.