Prosecutors charged Vach on Wednesday with four counts of insurance fraud and one count each of perjury by declaration, attempted perjury under oath and attempted grand theft.
The case against Vach grew out of a medical claim submitted by Vach in late 2007, prosecutors said.
"Investigators … established probable cause to believe that Detective Vach knowingly signed fraudulent documents under the penalty of perjury and received benefits to which he was not entitled," police said in a statement.
Prosecutors said Vach, a 15-year veteran of the department, operated two private businesses while out on a disability claim for job-related stress. They allege he also sought a lifetime disability pension.
Vach had been assigned to the LAPD's major crimes division. He was placed on unpaid leave pending the outcome of the case.
If convicted on all counts, the detective faces a maximum