The billion-dollar accounting fraud at Olympus has seen its first non-Japanese executive become embroiled in the scandal, as a former vice president is accused of 'liquidating hundreds of millions of dollars'.

Chan Ming Fon, a Taiwan national was arrested in Los Angeles, before being interview by Federal Bureau of Investigation (FBI) officers and subsequently charged with conspiracy to commit wire fraud - an offence carrying a 20 year jail term.

Currently a director of three companies in Singapore Chan was allegedly paid $10m (£6.15m) by Olympus or entities controlled by the camera maker for his role in the $1.7bn fraud.

FBI assistant director-in-charge George Venizelos, said: 'The defendant had a direct role in the secret liquidation of hundreds of millions of dollars of Olympus investments. He then waged a six-year campaign to conceal that misdeed by lying, certifying to auditors that the investments still existed years after liquidation.'

Chan's arrest comes after three former Olympus executives pleaded guilty in September to charges related to the one of the biggest accounting scandals in Japanese history.

The level of fraud was exposed in October 2011 by former chief executive Michael Woodford, who was fired after he questioned dubious deals that were later found to have been used to hide losses.

Olympus were unavailable for comment.