Seven men have been arrested as part of an ongoing police investigation into alleged fraud involving Greater Shepparton City Council and a business in Shepparton, Victoria.

The investigation began after the council identified concerns through its internal governance and financial monitoring processes. Council management then referred the matter to Victoria Police, stating that the decision was made in line with its obligations around accountability and transparency.

Victoria Police said detectives from the Shepparton Crime Investigation Unit executed several warrants across Shepparton on 17 June 2026 as part of inquiries into alleged fraudulent conduct that is believed to have occurred between 2022 and 2026.

The seven men arrested are aged between 36 and 55 years old. Police said the group included four men in their 50s, two men in their 40s and one man aged 36. All seven were interviewed by investigators and later released while further inquiries continue.

Greater Shepparton City Council Chief Executive Officer Fiona Le Gassick confirmed that a small number of council employees were involved in the police investigation. She said the council itself identified concerns and chose to refer the matter to Victoria Police rather than conduct the investigation internally.

"The council identified concerns through its internal governance and financial processes," Ms Le Gassick said, adding that the referral reflected the organisation's commitment to maintaining appropriate standards of conduct.

The council has declined to provide further details while the police investigation remains active. Officials said the matter is now before law enforcement and that the council would continue focusing on supporting the Greater Shepparton community.

Police have not released detailed information about the alleged fraud, including the amount of money involved, the specific transactions under investigation or the roles of the individuals arrested. Investigators said inquiries are continuing and further developments may follow.

The investigation has attracted attention because it involves a regional local government authority responsible for delivering community services, managing public funds and overseeing infrastructure projects across the Greater Shepparton area. Local councils are required to maintain strict financial controls and governance procedures to protect public resources.

The case highlights the importance of internal auditing and reporting systems within government organisations. According to council officials, those systems helped identify concerns before the matter was referred to police.

As the investigation continues, Victoria Police is expected to examine financial records, council processes and any relevant evidence gathered during the warrant operations. No charges have been publicly announced against the arrested individuals at this stage, and all matters remain allegations until tested through the legal process.

The Greater Shepparton community is now awaiting further information as authorities continue their investigation into the alleged fraudulent activity.