De Tomaso chairman Gian Mario Rossignolo has been arrested as part of a probe into the collapse of the Italian automaker.

De Tomaso chairman Gian Mario Rossignolo has been arrested as part of a probe into the collapse of the Italian automaker.

Reuters says Rossignolo and two others were taken into custody over allegations that they misused €7.5 ($9.1 / £5.9) million worth of government funds. According to police, the group may have used a fraudulent bank guarantee to obtain public funding and then diverted approximately €400,000 ($487,360 / £315,668) into their own bank accounts.

Rossignolo is currently under house arrest while the Guardia di Finanza (tax police) continues to investigate.

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De Tomaso chairman arrested for misuse of funds