Brazilian police arrested Carlos Arthur Nuzman for allegedly arranging more than US$2 million in bribes for officials, along with Leonardo Gryner, the former director of the National Olympic Committee.
Nuzman is accused of helping to buy the vote of disgraced Senegalese IOC member Lamine Diack - formerly president of the International Association of Athletics Federations.
Marcelo Bretas, the federal judge who authorized the arrests, said the new evidence indicated that Nuzman's role in the alleged vote-buying scheme was "more relevant" than previously thought. Nuzman is an honorary member of the IOC.
"The IOC Ethics Commission's activities started immediately after the allegations were made, and the investigation is ongoing".
Brazilian prosecutors revealed on Thursday they believed Nuzman stored 16 bars of gold in a depository in Geneva and greatly increased his wealth while overseeing the Rio bid and organizing committees.
On Thursday, the police said that Nuzman will be detained because investigators discovered that he had attempted to interfere with their investigation by attempting to regularize certain assets acquired with dirty money.
"This provisional suspension may be lifted partly or fully when the governance issues of the COB have been addressed to the satisfaction of the EB", an International Olympic Committee statement added.
Others suspected of being involved in the bribery scheme include former governor Sérgio Cabral, and officials say funding was provided by Brazilian businessman Arthur Cesar Soares de Menezes Filho.
The COB have been suspended by the International Olympic Committee and will not receive subsidies and payment or be allowed to "exercise its membership rights in NOC associations".
The IOC issued a statement today and ironically former United Nations Secretary General Ban Ki-moon is now chairman of the Ethics Committee and will be the one at the head of the IOC's investigation.
Rio defeated Madrid, Tokyo and Chicago that year to host the 2016 Games.
The IOC said it was fully cooperating with the investigation and conducting its own probe.