Expense claims made by Lancashire police and crime commissioner (PCC) Clive Grunshaw are to be investigated by the Crown Prosecution Service (CPS).
The claims under investigation were made when Labour’s Mr Grunshaw was a county councillor for Fleetwood East and a police authority member, before he was elected to the role of PCC in November.
Mr Grunshaw denies purposefully submitting claims he knew to be false.
He said today: “I maintain that at no point did I wilfully submit claims which I knew to be untrue and every expense claim I did make was genuinely intentioned.”
He added he would be continuing with his role as normal while the investigation continued.
The Independent Police Complaints Commission (IPCC) has been looking into the issue but now the case has been referred to the CPS for a decision on whether to prosecute.
The investigation began following a freedom of information request by former Chorley South councillor, Conservative Sam Chapman.
He asked for details of mileage claims from when Mr Grunshaw attended meetings of the council and the police authority on the same days.
The Office for the Police and Crime Commissioner (OPCC) said it was assisting the investigations.
Miranda Carruthers-Watt, chief executive and solicitor for the OPCC, said: “This investigation relates to claims made when Clive Grunshaw was subject to the Lancashire County Council expenses and allowance scheme as a Lancashire county councillor and a member of Lancashire Police Authority.
“The allegations do not relate to any expenses claims during his time as police and crime commissioner.”