A spokesman for Humberside Police said: "A 34-year-old Brandesburton man has been arrested in connection with fraud by position of trust. He has been released on police bail until early December 2009."

No charges have yet been brought against the doctor and the investigation is ongoing.

It is understood he is Dr Richard Little, a GP at Bridlington Medical Centre's Practice One in Station Avenue.

A notice at the surgery reads: "Practice One wishes to inform patients that Dr Little has left the practice with immediate effect.

"We are sorry for any inconvenience this may cause and wish to assure you that we are doing everything possible to minimise the impact of Dr Little's departure on the services we offer to our patients."

East Riding of Yorkshire Primary Care Trust, which administers GP services in Bridlington, said: "NHS East Riding of Yorkshire takes all allegations of this kind very seriously indeed.

"It is inappropriate for the general practice or the PCT to comment further while a police investigation is ongoing."