Gerald Waterworth, 49, financial director of the North Yorkshire building society, was suspended last Friday following an investigation into the use of funds in an external bank account held by the society for administrative expenses.
The society said no other employees were being investigated and that no customer accounts had been involved.
Scarborough, audited by KPMG in Leeds, last year made pre-tax profits of £7m and has assets of £1.2bn.
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