Underword kingpin Nissim Alperon was arrested by police at his home in Ramat Gan on Tuesday, on suspicion of extorting three taxi drivers.
Officers from Tel Aviv police's central unit raided Alperon's home and took him into custody. Alperon's brother, Yaakov, was assassinated in a carbomb attack in 2008 in Tel Aviv.
Police said Tuesday's arrest followed an undercover investigation, adding that the suspect would be brought before a court for a remand hearing on Wednesday.
Alperon was last arrested last year on suspicion of ferrying ecstasy pills on his motorcycle.
He denied the suspicions, saying the pills were only mints. He was released without charge within hours of that arrest.