The former chairman of Northampton Town Football Club has been arrested by police investigating a £10.25m given to the club by the borough council.
Police are investigating "alleged financial irregularities" in relation to the loan, which was designed to help the club develop its Sixfields Stadium.
The loan from the council was intended to be used to build a new stand, hotel and conference centre, none of which are yet to be finished.
David Cardoza, 45, was arrested on Monday morning and has been released on bail.
Work on the half-built East Stand ceased last June, with the club saying it could not afford to repay the loan.
The Cobblers have since been taken over with a memorandum of understanding now allowing for the club's debt to be wiped out in return for the council acquiring land around Sixfields for development.
Despite the off field difficulties the club have managed to perform on the pitch, currently in contention for promotion to League One.