Ottmar Pfaff was detained Saturday and was being held pending an investigation, Gerhard Schmitt, a prosecutor in the town of Hof, said Monday.

Pfaff's lawyer, Wolfgang Dingfelder, said his client had confessed to fraud dating back to 2000. He said Pfaff had taken the money in an attempt to keep Nici -- which holds the exclusive European rights to produce the stuffed lion for the June 9-July 9 tournament -- from collapsing.

"His main motive was to save the company," Dingfelder said.

Nici had filed for bankruptcy amid reports that sales of the mascot, called "Goleo," were not strong enough to compensate for the amount paid to secure the rights. Nici said its difficulties were caused by unspecified financial "irregularities."

Pfaff had hoped that sales of the mascot would help to solve the firm's financial problems, but that the toy had proved less popular than expected, Dingfelder said.