A few days ago, Niki Lauda ended his cap deal with the Liechtenstein based firm, and Die Presse reports that the great Austrian has now commenced legal action.
Sauber is also backed by the company, whose founder and chief Michael Seidl recently departed.
Die Presse reports on Thursday he has been arrested in Switzerland on suspicion of commercial fraud, with the Liechtenstein chief prosecutor confirming he is suspected of "fraud, embezzlement and other offenses".
Triple world champion Lauda, now reverting to his familiar red cap, is reportedly suing for unpaid monies and damage to his image.
The Money Service Group logo was still being used by Sauber at the Nurburgring, and was present on the stationary of the Swiss team on Thursday when its 2012 driver lineup was announced.
"I can't say anything about that yet. Let's wait," Sauber managing director Monisha Kaltenborn said a few days ago.
Sauber has been contacted for comment.