Italian police have arrested former Bank of America executive Luca Sala as part of a probe by Parma prosecutors into food group Parmalat’s collapse, according to court sources quoted by the Reuters news agency.
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Sala worked with Parmalat when he was head of corporate banking at Bank of America. He moved to Parmalat as a consultant in 2003, the year of its slide into insolvency.
The sources said Sala was arrested at his seaside villa, accused of involvement with Parmalat’s fraudulent bankruptcy.
Sala was indicted in June in the Milan branch of the inquiry, which focused on Parmalat’s links with the market, but was not among the 71 people named by prosecutors in Parma in their main inquiry, which they closed in May.
Sala has previously denied any wrongdoing. It was not immediately clear why he was detained almost two years after the food group’s collapse.
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By GlobalDataItalian judicial sources have said Sala told Italian magistrates early last year that he received millions of dollars from Parmalat work before the insolvency, but that the payments constituted commissions.
Parmalat, once one of Italy’s best-known international brands, tumbled into insolvency in late 2003 in the wake of a multi-billion euro accounting scandal and crippling debts.
