The arrests follow an investigation into alleged fraudulent conduct at a council and business in Shepparton between 2022 and 2026, according to police.
The arrests came after Shepparton Crime Investigation Unit detectives conducted search warrants in Shepparton on June 17.
The men, aged 55, 54, 52, 50, 45, 41 and 36, have been interviewed and released pending further inquiries, police said.
Council chief executive Fiona Le Gassick confirmed that a small number of council employees had been involved in a police inquiry in relation to a matter that council itself referred to Victoria Police.
“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,” Ms Le Gassick said.
She said the concerns were identified by council in 2025.
“Council subsequently launched an internal investigation, the findings of which led to notification of Victoria Police,” she said.
Ms Le Gassick said as it was now a police matter, council was “not in a position to make any further statements at this time”.
“Council remains focused on supporting the Greater Shepparton community and on upholding the high standards of conduct our community rightly expects,” Ms Le Gassick said.
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