A BISHOP has been arrested in connection with the sweeping probe of the scandal-plagued Vatican bank, known as the Institute for Works of Religion (IOR), Italian media reports.
The Corriere della Sera website alleged on Friday that the arrested cleric was Nunzio Scarano, the bishop of Salerno in southern Italy.
Silverio Sica, lawyer for Monsignor Scarano, said his client is accused of fraud, corruption and other charges stemming from a purported plot to bring 20 million euros ($A28.29 million) into Italy from Switzerland aboard an Italian government plane.
The plot never got off the ground, Sica said. He told The Associated Press that Scarano was a middleman in the operation: Friends had asked Scarano to intervene with a broker, Giovanni Carenzio, to return 20 million euros they had given him to invest.
Sica said Scarano persuaded Carenzio to return the money, and an Italian secret service agent, Mario Zito, went to Switzerland to bring it back aboard an Italian government aircraft.
He said the plot failed because Carenzio reneged. Carenzio and Zito also were arrested.
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