The 48-year-old former deputy leader of Liverpool City Council was charged after being questioned for almost 10 hours at Wavertree Road police station in the city. Mr Hatton went to the station voluntarily.
Two other men, aged 35 and 45, had been arrested earlier in Manchester and were questioned in Liverpool.
Police said Mr Hatton, of Wavertree, Liverpool, had been charged with conspiracy to defraud the Norwich Union insurance company of pounds 20,324 and conspiracy to obtain pounds 38,000 by deception from the firm.
He was further charged with the theft of a pounds 38,000 motorised horsebox and attempting to obtain pounds 38,000 by deception from the Norwich Union.
The 35-year-old Manchester man was charged with the same two conspiracy offences and the same theft offence as Hatton, and was also charged with obtaining pounds 20,324 by deception.
Both men were bailed to face St Helens magistrates' court on 6 July. The 45-year-old man was released on police bail until 29 June.