Ashfield District Council leader Jason Zadrozny has appeared at Northampton Crown Court accused of defrauding Nottinghamshire County Council.
Prosecutors allege that in 2018, Zadrozny set up the Ashfield Heritage Society, naming himself chairman and sole signatory, before applying for £7,500 from a councillors' fund intended to support local causes.
The court heard the heritage society did not actually exist, and that Zadrozny later withdrew the funds in cash.
He also faces further allegations relating to withdrawals of cash from a cinema club that he helped set up, as well as unpaid tax on rental income.
Zadrozny, 46, denies 12 counts of fraud and four counts of fraudulent evasion of income tax.
The case continues.
