Gary Howsam, CEO of Peace Arch Entertainment Group, was arrested Monday night while attending the American Film Market in Santa Monica, and has been placed on administrative leave.

The Toronto-based production and distribution company said in a statement Tuesday that Howsam’s arrest was made ‘in connection with a U.S. federal investigation into certain transactions between Comerica Bank and Mr. Howsam prior to his joining Peace Arch in 2003.’

Peace Arch said it is not party to the criminal investigation.

Jeff Sagansky, who was recently installed as co-chairman of Peace Arch, will also serve as interim CEO, the company said.

Howsam has been producing filmed entertainment for more than 20 years. In June 2004, he personally became the subject of litigation initiated in Los Angeles by Comerica Bank.

Peace Arch, addressing the issue in 2004, said Comerica’s action originated from complaints dating back to 1999.

Before becoming president of Peace Arch in 2003, Howsam was a prolific film producer, most notably with Greenlight Film & Television, which he founded in 1997. He started his producing career in 1980 as owner and president of Greenlight Productions, overseeing more than 100 documentary shorts over the next seven years.