Sauber has ended its sponsorship deal with the Money Service Group after reports that its founder was under arrest for commercial fraud.

11044 - Sauber ends MSG deal

The team had previously refused to comment on the reports, but following practice at the Hungaroring Sauber confirmed in a media statement that it had ended its contract with the Liechtenstein based firm.

"In the light of recent developments regarding the Money Service Group, the Sauber F1 Team has decided to end its partnership with the company with immediate effect," the statement read. "The MSG logos which have been appearing on the team gear, pit partition walls, backdrops and press stationery will be removed immediately after the Hungarian grand prix in Budapest."

The announcement comes after Niki Lauda said he would commence legal action against MSG - his cap sponsor - amid reports founder Michael Seidl had been arrested.