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Azerbaijan, Baku, May 04/ Trend F.Milad/

The head of the State Inspectorate Organization of Iran said that 14 persons have been arrested over the recent €100-million bank fraud case.

In an interview with reporters in the southern city of Bandar Abbas, Mostafa Pour-Mohammadi said that the persons are now free on bail, Mehr News Agency reported.

The organization announced on Monday that a new incident of banking corruption had been uncovered in the southern province of Hormozgan. It said 100 million euros had been loaned to a private company by a state bank without ensuring the necessary collateral was put in place.

The fraud case has been directed by the former head of the Melli Bank of Iran, Mahmoud Khavari, who is among the main culprits in the $3 billion embezzlement case. That case involves Amir Mansour Arya Group, accused of using its influence and government officials' cooperation to obtain forged letters of credit and huge bank loans that far exceeded its own value.

Mah Afarid Amir Khosravi is the lead defendant in the case but denies the charges against him. Mr. Khosravi controlled the Arya Group.