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The indictment says Mr Cheney - who has invested $85m (£56m) in a company that holds shares in for-profit prisons - conspired to block an investigation.
The indictment has not been seen by a judge, who could dismiss it.
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The three-page indictment also alleges that former US Attorney General Alberto Gonzales "used his position...to stop the investigations as to the wrong doings."
The grand jury wrote that it made its decision "with great sadness," but said they had no other choice but to indict Mr Cheney and Mr Gonzales "because we love our country."
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