BRASILIA, June 15 (Reuters) - Brazilian police have arrested 19 suspects on charges of laundering and embezzling 50 million reais ($25 million) from city-owned Banco de Brasilia, the prosectors' office said on Friday.

The suspects include the bank's former president, Tarcisio Franklin de Moura.

Brazil has seen a series of corruption scandals recently, including incidents involving the head of the Senate and an aide to the former energy minister.

Police seized cash, computers, expensive watches, precious stones and firearms in the bust, the prosecutors' office said in a statement.

Prosecutors believe the bank contracted technology service providers, which then funneled bank money through a private company and a nonprofit organization and into the pockets of executives, city attorney Leonardo Bandarra told local media.

Banco de Brasilia, or BRB, was founded in 1964 to foster social and economic development around Brazil's capital city.

Among other financial services, the bank makes small loans to poor entrepreneurs to help them improve business and climb out of poverty.

BRB said in a statement on its Web site that the bank's current management, appointed by a new mayor in April, was not involved in the fraud.

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