A former executive director of the Gander Area Community Business Development Corporation has been accused of using his position to issue fraudulent loans and false expense payments.

The RCMP say Bramwell Jack Budgell, 66, has been charged with misappropriating more than $130,000 between 2002 and 2008.

The non-profit business development organization lends an average of a couple of million dollars a year to companies in the central Newfoundland community, using funds from the federal Atlantic Canada Opportunities Agency.

RCMP Const. Kim Sarson said Budgell has been charged with two counts of fraud over $5,000, and two counts of uttering forged documents.

He is alleged to have created a scheme involving loans that were reneged on. Before Budgell wrote off the bad loans, police say, he would add an extra amount to the total owed.

"That's how it kind of got missed," Sarson said. "He would say why they needed to be written off, it would be an acceptable reason, and it wasn't looked into any further."

Police allege there were about 13 loans involved. Budgell is also alleged to have written cheques for travel without submitting claims.

Budgell, who was let go from the corporation after problems were discovered last December, will appear in court next month.