Wu Zhenhai, former board chairman of an agriculture company in Shangqiu city of Henan province, was accused of improperly raising 610 million yuan ($87 million) from the public, the official Xinhua news agency said.

The report did not describe the alleged scam but said more than 7,400 people were misled into giving money to the Henan Weilai Agriculture Co Ltd, which was established in 2004.

Wu was selected last August to be one of 56 torch bearers in the province on July 26, but he was disqualified in late June after the alleged scam was exposed.