Bucharest, Romania -

Romanian police have arrested the head of low-cost Romanian airline Blue Air on suspicion that he embezzled $7.8 million of European Union funds that were earmarked for building highways.

Nelu Iordache, popularly known as “the King of Asphalt” was arrested Sunday after a Romanian court approved a 29-day arrest pending an investigation. His lawyers said Monday they will appeal .

According to anti-corruption prosecutors, Iordache misappropriated EU funds designated for a highway in western Romania, which was being jointly built by a company owned by Iordache and a Portuguese company. His lawyers have denied the charges.

Prosecutors said Iordache, whose assets were estimated at ?150

million, transferred part of the money to Blue Air to buy aircraft and land for an airport. Blue Air has nine planes. - Sapa-AP