Nuzman, 75, was one of the key figures in bringing the games to Rio.
Twenty police officers were deployed early yesterday in Rio de Janeiro on orders from a federal judge, arresting Nuzman and seizing documents. The two are being charged with corruption and money-laundering in what is being called Operation Unfair Play.
Nuzman sits in the back of a police vehicle.
With their detention, the vice president of Brazil's Olympic Committee, Paulo Wanderley, has temporarily taken charge of the body.
Securing the games for Rio was just the first step in the massive scheme, according to Nuzman's arrest order.
Prosecutors asked for some $319 million dollars in assets belonging to Nuzman and Gryner to be blocked.
In addition, prosecutors say that Nuzman's net worth grew by 457 percent in the last 10 years without any evidence of income, according to G1.
Nuzman also tried to hide his wealth, often in foreign accounts, the statement read. Among the hidden assets were 16 kilos of gold in a Swiss bank, he said.
Federal Police arrested Carlos Nuzman, president of Rio 2016, and Leonardo Gryner, former chief operating officer of Rio 2016, today as part of an ongoing investigation into vote buying ahead of the 2009 IOC Session.
At the time, Nuzman was detained and questioned and authorities confiscated his passport.
The arrest is part of the corruption investigation, known as Operation Unfair Play.
According to Reuters, Brazilian investigators claim that Nuzman, 75, helped organize a $2 million bribe to International Olympic Committee officials to ensure they would vote for Rio to host the 2016 Summer Olympics.
Rio beat Chicago, Madrid and Tokyo to win the 2016 Games. Now, however, O Globo reports that prosecutors can cite several emails between Nuzman, Gryner, and the younger Diack that appear to confirm their agreement to trade the money for the vote.
The latest scandal cast a pall over an International Olympic Committee meeting in Lima last month following the designation of Paris for the 2024 Games and Los Angeles as the 2028 host city. The Brazilian newspaper Folha de Sao Paulo notes that Nuzman was reportedly planning to demand the International Olympic Committee "provide him with a financial bailout" given the exponential debt left behind by the event.
The IOC is cooperating and is also proceeding with its own internal investigation.
Ethics Commission Launches Investigation An IOC spokesperson said in a statement that its Ethics Commission had already started an investigation into Nuzman and "may consider provisional measures", in the wake of his arrest.