Attorney General Avichai Mandelblit and State Prosecutor Shai Nitzan had already notified the prime minister's wife of their intention to file charges in recent months.
Wife of Israeli Prime Minister Benjamin Netanyahu, Sara Netanyahu, was charged on Thursday with fraud and breach of trust after a drawn out police probe into allegations she falsified household expenses, said Israel's justice ministry.
Investigators in the case gathered evidence that purportedly shows that the prime minister's wife ordered that the employment of the cook be concealed and also showed that she was aware that ordering meals from the outside for the residence when it employed a cook was a violation of the rules.
Investigators have evidence that shows that Sara Netanyahu sought to hide the employment of a cook at their home and knew that ordering the meals violated rules, Haaretz reported. State funding for both is not allowed.
Cohen has said that if the charges only related to NIS 30,000-NIS 40,000 at most, they could be dropped as relating to an oversight.
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The Netanyahu family's legal problems have gripped Israel for more than three years, and in the prime minister's case threaten his political survival.
In a statement posted on the prime minister's Facebook page, her lawyers called the indictment "baseless and delusional". "There was no fraud or breach of trust or any offense". The Israeli prime minister is himself embroiled in a series of corruption investigations but has protested his innocence and vowed to remain in power, saying he is the victim of a witch-hunt.
Her husband is also the subject of several corruption investigations which have caused a stir in Israeli politics, prompting speculation he may eventually be forced to step down.
Police are still investigating suspicions Netanyahu arranged regulatory benefits for the country's biggest telecommunications provider, Bezeq Israeli Telecommunication Corp., in exchange for sympathetic coverage by its online news outlet.
Haaretz first reported past year that Sara Netanyahu would face fraud charges.