Local State Member for Ovens Valley Tim McCurdy has been charged with multiple alleged fraud offences and has stood down from the Opposition frontbench vowing to fight the charges.
Mr McCurdy has been charged by police with 10 offences — four counts of making a false document, four counts of using a false document, attempting to obtain property by deception and obtaining property by deception.
Victoria Police said the charges relate to an investigation into a 2009 alleged fraud.
In a statement Mr McCurdy said following notification from police this morning he was standing down from his shadow ministry portfolio.
The offences relate to a property sale he was involved with before he entered Parliament.
"I am innocent of these allegations and I await the opportunity to defend myself in court and clear my name,'' Mr McCurdy said.
"As I prepare to have these matters heard in court, I am today stepping down from my shadow ministry responsibilities."
He is due to face the Shepparton Magistrates court on April 24 and would not comment further before the hearing.
Opposition Leader Matthew Guy confirmed that Nationals MP Danny O'Brien would pick up Mr McCurdy's former portfolios of Sport, Veterans, Gaming and Liquor Regulation.