Seven arrested in Victoria Police fraud investigation at Greater Shepparton Council

Seven men have been arrested as part of an ongoing investigation into fraud at a council in Victoria's north.

Greater Shepparton City Council says it referred allegations of fraud by employees to Victoria Police after concerns had been identified internally.

Police said detectives from the Shepparton Crime Investigation Unit arrested the seven men following the execution of several warrants across Shepparton on June 17.

Police said the arrests followed an investigation into alleged fraudulent conduct at a council and a business in Shepparton between 2022 and 2026.

Four men in their 50s, two in their 40s and a 36-year-old were interviewed and police said they were released pending further enquiries.

In a statement, Greater Shepparton's chief executive officer, Fiona Le Gassick, confirmed the involvement of council staff.

"A small number of council employees have been involved in a police inquiry in relation to a matter that council itself referred to Victoria Police," Ms Le Gassick said.

"Council identified concerns through its internal governance and financial processes and took the decision to refer the matter to police, consistent with our obligations and our commitment to accountability and transparency."

She said the investigation "arose from concerns identified by Council and referred by Council to Victoria Police."

"As this is now a police matter, Council is not in a position to make any further statements at this time," the statement said.

"Council remains focused on supporting the Greater Shepparton community and on upholding the high standards of conduct our community rightly expects."