Two South Bend City employees will temporarily run the day to day operations of DTSB.
The non-profit group was formed to promote the downtown business community.
Earlier this year, felony theft charges were filed against a former employee, after some 200 thousand dollars went missing.
DTSB is largely funded by contributions from the city of South Bend.
City employees Marco Mariani and Jitin Kain, of the Community and Economic Development Department, will step in to lead the group on an interim basis.
South Bend City Employees Take Over DTSB