Ronald Lutton, 57, of Industry, was charged Wednesday for allegedly falsifying time sheets, altering documents and receiving wages for hours he did not work between Jan. 2009 and Aug. 2012.
Lutton was suspended from his job as police chief last August.
Authorities said the alleged thefts resulted in $45,000 of improper payments.
Lutton was released without bail on Wednesday. A preliminary hearing is scheduled for March 7.