Former Outremont borough mayor Stephane Harbour was arrested Monday on nine charges, including fraud.
Harbour was arrested along with two of his former top aides, Yves Mailhot and Jean-Claude Patenaude, who each face 13 charges, Surete du Quebec officers confirmed.
The three are accused crimes including fraud, fabrication of false documents, breach of trust and conspiracy relating to events dating back to between 2005 and 2008.
Harbour resigned as Outremont's mayor in 2007 following scandalous revelations in a auditor's report that raised questions about the borough's spending practices, and using taxpayer money to buy alcohol.
Police investigated Monday's charges following a complaint made by a municipal councillor.
Ordered in 2007, the investigations showed Harbour twice charged to the borough manager's account over $2000 for English classes, when elected officials are not reimbursed for language instruction. Harbour reimbursed the expenses, claiming it was a mistake.
The investigation also showed that Mailliot submitted $14,667 worth of expenses, when he was entitled to a maximum of $4,000; Patenaude submitted $18,176 in expenses, when he was entitled to $2,500.
The arrests come amid allegations that some of the province's politicians are embroiled in a scandal involving the construction industry and organized crime.
In the fall, Charest called a provincial police probe into the matter -- nicknamed Operation Hammer -- which resulted in Monday