A man arrested on suspicion of indecent assault is believed to be Neville Neville, the father of former England footballers Gary and Phil, ITV News understands.
Police said they arrested a 63-year-old man after reports of an incident in Bury in the early hours of Saturday.
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The founder of an academy and two former staff members have been jailed for defrauding the Department for Education of thousands of pounds.
Pino Pagliara told ITV News a lucrative salary meant he told undercover reporters posing as football investors "what they wanted to hear".
She was best known for playing Ethel Meaker in the children's show Rentaghost and Grandma on stage in Billy Elliot the musical.