Shipowner Victor Restis was remanded in custody on Friday after giving testimony for three hours in front of a magistrate in Athens following his arrest earlier this week on charges of embezzlement and money laundering.

Restis denied that he was the recipient of a 5.8-million-euro loan granted by First Business Bank, where he was chairman. The 45-year-old businessman said that the money ended up in the account of an associate, who is being sought by authorities. Restis deposited 5.8 million euros into the state-owned Deposits and Loan Fund to show his willingness to cooperate but, after lengthy conferring, the magistrate and prosecutor decided that he should remain in custody as he is a flight risk or could commit new offenses.

Two properties owned by Restis in Glyfada, southern Athens, have also been confiscated by authorities pending his trial.