NEW YORK (Reuters) - Three former executives at Transmar Commodity Group Ltd have been charged with defrauding banks by submitting false financial reports to obtain a $400 million credit line for their now bankrupt cocoa commodity trading company, federal prosecutors said on Tuesday.
Peter G. Johnson, who was Transmar's chief executive, and his son Peter B. Johnson, who oversaw Transmar's Euromar Commodities affiliate, were arrested at their New Jersey homes on Tuesday morning, while former vice president Thomas Reich surrendered to the FBI on Tuesday afternoon, prosecutors said.
Each defendant was charged with bank fraud, wire fraud affecting a financial institution, and conspiracy to commit fraud, according to an indictment. Lawyers for the defendants could not immediately be reached for comment.
(Reporting by Jonathan Stempel and Brendan Pierson in New York; Editing by Steve Orlofsky)