According to a report by the CBC, councillor Michael Patrick Sack, 31, is facing charges related to a luxury house near Herring Cove Road in Halifax.
The CBC quotes a Nova Scotia public prosecution service spokesperson who said the case involves an alleged fraud of more than $150,000.
"In this particular case, there will be an allegation that funds were stolen or defrauded," Shauna MacDonald said in the CBC report.
Sack was re-elected to the Shubenacadie Band Council in November. He also faces a perjury charge in relation to the case for swearing an affidavit prosecutors say was untrue.
According to court documents, $120,000 of the home's purchase price was allegedly obtained through illegal means.
The second man is named as Jeffrey Cecil Hayes, a former financial director with the band, who was fired after hundreds of thousands of dollars could not be accounted for.
Two jeeps, valued at about $50,000, that are owned by Hayes have been seized by the RCMP along with a 32-inch Samsung television that was in his possession.