The former head of Art Gallery of Calgary is facing serious charges, accused of defrauding the organization of nearly $500,000.

56-year-old Valerie Anne Cooper faces six counts of fraud over $5,000, and one count each of theft under $5,000, mischief, obstruction, and falsifying documents.

The charges come after a nine month long investigation.

Police say that during Cooper's time as president and CEO of the gallery, she took out fictitious loans and expensed fictitious framing, used gallery funds for massages, personal home improvements, and to purchase at least two paintings that haven't yet been found.

They're also investigating an unauthorized boost in salary that she herself approved.

According to investigators, all the alleged activity took place between July 2005 and March 2012 and the loss to the gallery it estimated to be at least $438,000.

"We were able to do two search warrants," says Const. Tanya Bertulli with the CPS Economic Crimes Unit. "They are called production orders on Ms. Cooper's personal accounts, which gave us enough evidence."

Cooper is also being sued by her former employer, who believes that she owes them up to half a million dollars in unauthorized expenses.

She had been offered a position at the Rotary Centre for the Arts in Kelowna, but that job offer has since been withdrawn once the centre learned about the pending civil suit.

General manager Steve Faigan says the allegations came as a complete surprise.

"We had absolutely no inkling or suspicion but, because of the gravity of these allegations and the magnitude and perception people have – we couldn't go forward."

Police add that the case should be a lesson for non-profit groups because, like any business, all the checks and balances should be in place.

While the Art Gallery of Calgary is not government run, the 2011 annual report says the organization received $481,000 in taxpayer funding.