MILAN, Italy, Dec. 30 (UPI) -- An Italian judge Tuesday ordered Parmalat's founder to stay in jail amid accusations he looted the firm, the Wall Street Journal reported.

Judge Guido Salvini rejected a defense request that Parmalat founder Calisto Tanzi be granted house arrest until he's indicted.

Parmalat filed for bankruptcy protection after it was revealed that a Cayman Islands subsidiary, Bonlat, didn't have some $4.9 billion in a Bank of America account.

Prosecutors claimed a dramatic break Monday, as Tanzi admitted siphoning off $624 million, according to two sources.

Meanwhile, the scandal is having global repercussions. The Australian newspaper said Parmalat Australia's accounts indicate huge loans exist between the Australian operation and the Italan parent company. Last calendar year Parmalat Australia owed Parmalat in Italy more than $217 million, up from $189 million the year before.

In the U.S., securities regulators are suing Parmalat for "grossly overstating its assets" to U.S. investors, who hold some $1.5 billion in bonds and notes.

Parmalat, Italy's eighth-largest company, reported sales of $9.4 billion in 2002. It employs 36,000 people worldwide, including 4,600 in the U.S. and Canada. Its Chicago bakery is the third-largest cookie producer in the U.S.