Banker arrested in Olympus probe

PHOTO: Banker arrested in Olympus probe

A former bank vice president was arrested Thursday for his alleged participation in a scheme to misrepresent the financial condition of Olympus Corp, federal authorities said.

The man, Chan Ming Fon, is scheduled to appear Thursday in federal court in Los Angeles.

"The defendant had a direct role in the secret liquidation of hundreds of millions of dollars of Olympus investments.

He then waged a six-year campaign to conceal that misdeed by lying, certifying to auditors that the investments still existed years after liquidation," said FBI Assistant Director-in-Charge George Venizelos.

Fon is charged with one count of conspiracy to commit wire fraud. Federal authorities did not name the bank where Fon worked.

In September, Olympus Corp and three of its former employees pleaded guilty over charges related to a $1.7 billion accounting cover-up in one of Japan's biggest corporate scandals.