Swedish Radio News reports that officers arrested Thomas Liakounakos at his Athens home Monday night.
Liakounakos was allegedly working on behalf of the Swedish company Ericsson in Greece as a commercial agent, Reuters news agency writes.
He stands accused of paying a bribe of up to 2 million euros (SEK 18.8 million) to a Greek official to secure a deal in 1999, though Reuters reports that Liakounakos strongly denied any wrongdoing.
The alleged bribes were paid in connection to the Greek state purchasing the Erieye radar system, at the turn of the millennium. Swedish Radio News writes, in connection with the deal, more than SEK 100 million was paid to a go-between in Morocco.
Ericsson, which sold its microwave systems unit that made the military radar system to Saab, did not want to comment on the arrest.
The telecom company did stress in a statement that it "has zero tolerance against bribes and corruption."