A 21-year-old former Lancashire County Council worker has appeared in court charged with stealing more than £150,000 from the authority.
Graham Martin, of Hesketh Bank, is accused of transferring the money into a company account.
He was arrested along with 26-year-old Robert Brookfield following a search of their home in Chandler's Croft on Friday.
At the same time, John Hosker, 23, was arrested at his home in Marsh Lane, Preston.
Mr Martin - who was employed by the county council through an agency - is charged with three counts of obtaining money transfers by deception.
Mr Brookfield is charged with aiding and abetting him while Mr Hosker is accused of laundering the money in September.
All three were bailed to return to court in three weeks.