Peter Benstead was a Joint Director of Crown Currency Exchange Ltd and Crown Holdings, which collapsed owing around £16m to 8,000 people.
He was a long serving town, district and county councillor in Cornwall.
The CPS allege Mr Benstead knowingly carried on business for a fraudulent purpose and falsified accounts.
– Sue Patten, Head of Fraud, Crown Prosecution Service
Following a thorough investigation by Devon and Cornwall Police, we have today authorised seven people to be charged in connection with two companies operating in the field of foreign currency exchange - Crown Currency Exchange Ltd and Crown Holdings Ltd and a third associated 'cash for gold' company - Mayfair and Grant Ltd."
Seven people have been charged in connection with the collapse of a Cornwall based foreign currency firm.
8,000 people are thought to have lost around £16m of their holiday money when Crown Currency Exchange based in Hayle went into administration in 2010.
- Peter Benstead, 70, from Penzance, former long serving town, district and county councillor
- Julian Benstead, 44, from Penzance
- Katey Calvimonte, 35, from Penzance
- Roderick Schmidt, 44, from Penzance
- Stephen Matthews, 50, from Penzance
- Edward James, 73, from Glastonbury, former Mayor of Glastonbury
- Victoria O'Brien, 37, from Welwyn in Hertfordshire
All seven have been released on bail to appear at Westminster Magistrates' Court in London in September.