Police have passed a file to the Crown Prosecution Service (CPS) following an investigation into former Liverpool City Council chief executive Ged Fitzgerald, Lancashire CC leader Geoff Driver (Con) and two other men.
Lancashire CC referred allegations of financial irregularity to the police in 2013.
That led to Mr Fitzgerald being arrested last May on suspicion of conspiracy to pervert the course of justice and witness intimidation.
Cllr Driver was also arrested with the same charges along with the county council’s former chief executive Phil Halsall and the ex-chief of Liverpool Direct and Lancashire joint venture One Direct, David McElhinney.
In a statement, Lancashire constabulary said the file had been submitted following “a complex and lengthy enquiry”.
Mr Fitzgerald, who was Lancashire chief executive from 2008 until he joined Liverpool in 2011, was suspended on full pay by the city council in September last year. He resigned in May.
The bail period for all those arrested has now been suspended as a result of the file being passed to the CPS.