Five men and two women, including a director and three former senior staff of two listed companies, have been arrested for conspiring to defraud shareholders and 18 local and overseas banks of $3.55 billion.

They allegedly falsified accounting records last year to create fictitious trading businesses and set up investment schemes to falsify the companies' financial records to swindle a $1-billion loan. These trading receivables and investments totalling $2.55 billion were subsequently written off.