California-based financier Danny Pang has been arrested by the FBI on charges of structuring cash transactions so he wouldn't have to report them to federal regulators.

The Los Angeles U.S. attorney's office says the founder and former chief executive officer of Private Equity Management Group was arrested Tuesday afternoon.

A criminal complaint filed in U.S. District Court in Santa Ana alleges that, starting in June 2007, Pang used PEMGroup staff to cash checks for less than $10,000 to avoid filing currency transaction reports required by the Securities and Exchange Commission.

On Monday a judge froze the assets of the Newport Beach resident.

Calls by The Associated Press seeking comment from the company and Pang's attorney were not immediately returned.