Former Rayo Vallecano owner Jose Maria Ruiz-Mateos has been arrested in Madrid, according to Telecino.
The businessman, who was in charge of the club between 1991 and 1994, had allegedly been on the run from authorities for his alleged involvement in a fraudulent sale of a hotel in Mallorca.
Ruiz-Mateos, whose holding company Nueva Rumasa were declared bankrupt over a year ago, now reportedly owes creditors in the region of €13.9m for this alleged scam.
The 81-year-old was arrested at his home in the capital on Wednesday, and will appear in court in Palma on Thursday.
During his time at the Campo de Futbol de Vallecanos, the club were promoted to La Liga in 1991-92 before being relegated two season later.