Scarborough suspends director

The decision to suspend finance director, Gerald Waterworth, was taken following an internal investigation, but the matter has now been taken up with the police who are conducting their own enquiry.

The Society revealed that the £103,000 had been placed into an external bank account for the purpose of administration and no action had been taken against any other employees. There are no other official details at the moment as the Society said it could offer no further comment as a police investigation was underway.

John Carrier, chief executive of Scarborough, said the society was operating "business as usual" despite the suspension, but there was "an awful lot he could not comment on due to police involvement."

In a statement the Society said that it has assets of £1.2bn, and its latest full-year accounts showed pre-tax profits of £7m and capital of £74m.

In an interview with the BBC Carrier, said: "The important point to stress is that while we do not want to trivialise the matter, the amount involved is very small in relation to our profits, capital and assets."