He allegedly accepted $35 million (£27 million) in bribery from a Brazilian construction company that had been given a contract to build a road in southern Peru, according to the prosecution.
Toledo served from 2001 to 2006 and is now 78 years old.
He was extradited to Peru last year after being caught five years ago in California, where he had spent many years living and working.
In order to obtain government contracts, the Brazilian business Odebrecht acknowledged bribing authorities in the US and Latin America with millions of dollars.
The Peruvians “trusted” Toledo as their president, “in charge of managing public finances,” and “in charge of protecting and ensuring,” according to Judge Inés Rojas.
Rather, the Associated Press cited her as stating that he had “defrauded the state.”
According to the news agency, Toledo has disputed the accusations made against him and on Monday grinned and occasionally laughed, particularly at the judge’s remarks.
Another former Peruvian president, Alan García, shot himself in 2019 when police showed up at his house to arrest him on charges of bribery involving Odebrecht, which became Novonor.
The Odebrecht scandal is also being probed in relation to two more former Peruvian presidents, Pedro Pablo Kuczynski and Ollanta Humala.
