Seven senior Shuvu Banim officials were arrested by Israel Police on Monday on suspicion of fraud and money laundering at a business in the city.
Six of them live in Beitar Illit and the seventh in the Mea Shearim neighborhood of Jerusalem.
One of the suspects is the son of a salesman.
The Central Unit of the Jerusalem Police said that more arrests are expected.
Allegations against them include tax fraud and money trafficking to bring funds to mosdos connected with the Breslov Chassidus. Additional arrests are expected.
Meanwhile, the founder and Rosh Yeshiva for Shuvu Banim continues to hide in Morocco, since he is wanted in Israel for alleged crimes. Should he leave Morocco, he may be arrested and extradited by Interpol.