NEW YORK, April 29: Tim Montgomery, whose once sparkling sprint career ended in doping disgrace, has been arrested in connection with a multi-million-dollar bank fraud scheme, prosecutors said on Friday.

The US attorney's office in New York said the arrest of Montgomery was the result of a long-term investigation in which a grand jury has already charged at least 10 other defendants, including the now retired Montgomery's one-time coach, 1976 Olympic relay gold medallist Steven Riddick.

Montgomery appeared in court in Norfolk, Virginia on Friday after being released on a US$10,000 bond. He is scheduled to appear in a New York federal court on Wednesday

Prosecutors say all those charged are accused of taking part in a conspiracy to defraud banks by depositing more than five million dollars “stolen, altered and counterfeit checks, as well as proceeds from such checks, and then to launder the procees from these checks through their various accounts.”

Two coffee businesses in New York owned by a local couple were used to launder some of the money, the indictment alleges.

Defendants from the New York are are accused of sending fraudulent checks to defendants from other areas, including Montgomery and Riddick in Virginia.

According to the indictment, Montgomery deposited three fraudulent checks worth $775,000 into accounts associated with him, and he is also accused of receiving a $20,000 to broker the transaction.—AFP