Israeli counterfeit ED lab and sites busted.

Police arrested 12 people Wednesday suspected of distributing fake Viagra and Cialis pills. During the police operation, police seized thousands of pills and packaging equipment.

After a lengthy undercover investigation, officers of the Financial Intelligence Unit searched homes, offices and businesses throughout the country. The packing facilities were discovered in a moshav in the center of the country.

Among those arrested is the owner of a Tel Aviv advertising company who is suspected of assisting in promotion. It is thought that thousands of people bought the fake pills.

In addition, there are also suspicions of extensive money laundering connected to the case, as well as tax evasion, being investigated by the Tax Authority. The police also questioned 23 other suspects.

The 12 people arrested are suspected of a list of charges, including illegal use of brand names, unauthorized distribution of medicine, recklessness and negligence, fraud, and breaking VAT and income tax laws.

They will be brought before the Tel Aviv Magistrate's Court to have their remand extended Wednesday.

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