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A Gloucestershire county councillor obtained loans of £150,000 for a social club by lying about documents and forging signatures, it is alleged.
Senior members of the Carlton Club in Stroud claim councillor Nick Housden, who represents the Stonehouse district, forged signatures and lied about the nature of application forms to four committee members in order to secure several loans from the Association of Conservative Clubs (ACC).
The club's managing director said it has left the business with "crushing" amounts of debt and almost forced it to close.
Mr Housden, who is standing as an independent candidate in the county council election on 1 May, said he "absolutely denies" the accusations and believes it is a "politically motivated" attack.