Police won't release details of the allegations as the case is now before the courts.
Thomas Miller is charged with forgery, uttering a forged document and two other charges.
He was fired by the town in 2011.
Miller, who declined comment Wednesday, has been released from custody and is to appear in Fort Saskatchewan provincial court June 6.
A construction company owned by developer Gilles Filiatreault filed a civil lawsuit against Miller and the town in 2010.
In the statement of claim, Jabneel Development Inc. alleges Miller asked for a five per cent cash commission on a 1,200-unit housing project to be built in Lamont, a community northeast of Edmonton.
The court document claims Miller told Jabneel officials that such a payment would ensure the proper functioning of projects in Lamont.
Statements of claim contain allegations that have not been proven in court.
In a statement of defence filed by the town and Miller in 2010, Miller denies every allegation levelled against him.