Henry Centrella, the former finance director of Winsted in Connecticut, has been arrested by state police on August 30.
Winsted was the subject of a state police probe after he was accused of stealing up to $2 million.
The city had filed a lawsuit against Centrella and his wife in July, reported the Register-Citizen, which reported the arrest.
Centrella is being held on a $100,000 cash-only bond.