Ex-Head of Goleo Firm Arrested on Suspicion of Fraud

Just when things looked like they couldn't get any worse for the beleaguered World Cup mascot Goleo, the former head of Nici, the German company which produces all the lion's merchandise, has been arrested on suspicion of fraud a week after the company filed for bankruptcy.

Ottmar Pfaff was taken into custody on Saturday as investigators began following up allegations that he defrauded the company holds the exclusive rights in Europe to produce merchandise featuring the pant-less lion and his talking soccer ball side-kick, Pille.

Germany's Süddeutsche Zeitung daily reported that Pfaff had been illegally taking money from the company since 2000 and using it to reinvest in the family-run business.

It's a further slap in the face for Nici which filed for bankruptcy amid reports that sales of the mascot were not strong enough to compensate for the amount paid to secure the rights. The company has denied this as being the reason for its insolvency, saying that its difficulties were caused by unspecified financial "irregularities."

FIFA has supported this stance, but has also distanced itself from Nici's situation. "Nici's current financial problems are not linked to its partnership with FIFA."