Police will take no further action following an allegation of fraud involving a troubled academy that closed this summer.
West Midlands Police said in April that they had arrested a 48-year-old man on suspicion of fraud connected to Baverstock Academy in Birmingham.
They had also conducted voluntary interviews with a 71-year-old woman and a 57-year-old man.
All three were released while police continued their investigations.
The news added to the problems faced by the school, which was put into special measures last year after an Ofsted inspection highlighted concerns about academic results and leadership, and found it was “not financially sustainable”.
The government had tried to find a new sponsor for Baverstock after the Leap Academy Trust asked for permission to close it, but announced in January that it would close at end of the summer term.
Regional schools commissioner Christine Quinn said that although a number of potential sponsors had considered taking over the school, the “financial and educational issues affecting it were too complex to guarantee the improvements needed”.
Now West Midlands Police have said that no further action will be taken against the three people they interviewed as part of their probe.
A spokesperson said: “Following an investigation, a 48-year-old man, a 71-year-old woman and a 57-year-old man, who were interviewed in regards to this, will face no further action.”