Governors of a flagship free school in Bradford have sacked its founder and principal after a disciplinary investigation.
Sajid Raza, 41, the head of Kings Science Academy, was arrested in January as part of a police investigation into alleged fraud and was then rearrested in June. He remains on bail pending further police inquiries.
A statement on the school's website says that Mr Raza has been removed from his post following a disciplinary investigation.
The statement, from chair of governors John Bowers, says: "Following a disciplinary investigation, the principal of the academy, Mr Sajid Raza Hussain has been dismissed from his post.
"Mrs Jane Tiller will continue to be the executive interim principal until December 31 2014. The academy will continue to be supported by the Bradford Partnership.
"The trustees and governors have asked the Department for Education to find a suitable multi-academy trust for the academy to join and have asked the department to identify a suitable partner."
Last year, it was revealed that the school claimed tens of thousands of pounds in public money which was not used for its intended purposes. An investigation by the Education Funding Agency (EFA) found ''significant weaknesses'' in the financial management of the school.
The academy was one of the first free schools to open in September 2011. It was praised by Prime Minister David Cameron on his visit in March 2012.
In June, West Yorkshire Police said a 41-year-old man arrested on suspicion of fraud offences had answered his bail and was "arrested in relation to further allegations of fraud".
The police statement continued: "All aspects of the school finances and governance that relate to these potential offences and allegations are being thoroughly investigated.''