Deputy Tax Collector Marc Castaldi was arrested Friday night.
Public Safety Commissioner Steven Pare told The Providence Journal Saturday that Castaldi was arrested. Details were not provided about the alleged fraud.
A message at a phone number listed in Castaldi's name was not immediately returned on Sunday.
David Ortiz, spokesman for Mayor Angel Taveras, said the city suspended Castaldi without pay.
Pare said an arrest report was not immediately available Saturday and might not be complete yet because detectives were still investigating. He says Castaldi was arraigned and given a court date.