Mizrachi, 29, had a long record of arrests, and was a well known member of the criminal underworld in the Rishon Letzion-Holon-Bat Yam area.
The style of the murder resembles "red riding hood" type killings, where the victim is called for a meeting by a criminal associate he trusts, and then murdered at the scene.
Police said Wednesday they expect further arrests in the coming days.