Exclusive: Credit union's former manager arrested over suspected fraud

Beverley Farmer, a former area manager at Leeds City Credit Union (LCCU) which has been hit by a series of financial and management crises, was detained by detectives before being bailed.

Earlier this year, it was revealed that Ms Farmer had allegedly made irregular money transfers and obtained loans without proper authorisation. Police began an inquiry after the allegations were reported by LCCU.

Ms Farmer was sacked from her job in Leeds but has since become operations manager at nearby Calderdale Credit Union.

The board of directors at Calderdale declined to comment though it is understood Ms Farmer was at work yesterday.

The board has previously declined to comment when asked whether Calderdale was aware of Ms Farmer's employment history.

Another credit union in Yorkshire who employed Ms Farmer following her sacking at Leeds let her go within a fortnight when her background became known. Ms Farmer also declined to comment.

A police spokeswoman said a 50-year-old woman from the Wakefield area had been arrested on suspicion of fraud and theft. She was interviewed by detectives on Saturday and released on police bail.

LCCU has been mired in controversy since a Yorkshire Post investigation revealed mismanagement under the former chief executive, Sue Davenport, which led, last year, to an emergency bailout of 4m from public funds.