Police say they have arrested a 51- year old woman over an alleged fraud at The Space Centre in Preston.
The woman was picked up in Scotland on Thursday and is being questioned by police in Preston
Last year the Space, a charity for disabled people discovered that grants said to be in place did not exist.
Seemingly secured grants failed to arrive in the bank account of the charity and on investigation it was found that Space had either been refused a grant months ago, or had never even been applied for.
Space was left with a £800,000 hole in its finances meaning the centre could lose all their existing facilities.
Blog Preston reported on the Save the SPACE Centre campaign back in November.