Another Parmalat executive arrested in scandal

? A banker who had served on Parmalat’s board of directors was jailed Monday on charges of criminal association and fraudulent bankruptcy, widening the fallout from the food company’s fraud scandal.

Franco Gorreri became the 10th person arrested in the case. Because of the Parmalat investigation, Gorreri had temporarily stepped aside as chairman of Banca Monte Parma, said Cmdr. Maurizio Raponi, head of the tax police office in Bologna.

Raponi said Gorreri was being investigated for his former role on Parmalat’s board and not for his role at Banca Monte Parma. The bank, founded in 1488, is the main local bank in Parma.

Also on Monday, Italian news agencies said that Parmalat auditors, Deloitte & Touche’s Italian branch and the former Italian branch of Grant Thornton, had been formally placed under investigation.

The Parmalat scandal exploded one month ago, when it was revealed that Bank of America wasn’t holding about $4.9 billion, as the Italian company had reported in September.