Salvatore Tuttolomondo and his brother Walter became the main owners of Palermo a few months before the Italian club went bankrupt in 2019.
The two were arrested on Wednesday by Italian financial crimes police for using the club's money for unauthorised payments and investing in other activities at the time of the bankruptcy.
According to the Guardia di Finanza, the Tuttolomondos lied to the courts about paying Palermo's salary and taxes and made false tax claims to avoid a payment of EUR 1.4 million.
In addition to the Tuttolomondo brothers, three other people related to them are still under investigation, although they were not taken into custody as Salvatore and Walter.