A former bank official who allegedly misappropriated more than 50 million yuan (HK$46.5 million) has been arrested after being on the run for almost two years. Police found Xiao Jiangang, who was manager of a branch of the Bank of China in Puyang, Henan province, and his wife, Wei Xuexia, in the Sichuan capital, Chengdu, living under false names. They went on the run in November 1997 after the allegations against Xiao surfaced. The couple hid in seven cities before settling in Chengdu, from where they hoped to leave the mainland through Yunnan province, the China Youth Daily said. Xiao was said to have illegally appropriated more than 54 million yuan of savings between March and October 1997 by promising depositors a 10 per cent interest rate. He diverted more than 50 million yuan from the deposits to make unauthorised loans, the paper said. Xiao's alleged actions affected more than 300 households in what was considered to be the city's biggest known financial crime, it said. An investigation team set up in June last year found Xiao by tracking the movements and pager use of his older brother. The paper said 12 other people were also suspected of involvement. Since Xiao's arrest last month, the 12 were once more under investigation. Police have recovered more than 20 million yuan.