(WSBT) A small town in our area is being rocked by allegations of embezzlement and misappropriation of funds. New Carlisle's Clerk Treasurer Katie Keck resigned this week, just days after the Indiana State Police raided her office.

No charges have been filed yet, but the Town Marshal told the town council he filed the initial complaint, and there was “irrefutable proof of a crime.”

New Carlisle leaders say the state police sealed off the town hall as they investigated allegations of embezzlement and misappropriation of funds by Keck.

“They confiscated computers and documents. What documents, we don't even know at this time,” said Steve Hora, president of the Town Board. “We know there was a lot of them.”

A few days later, Keck resigned. The St. Joseph County Democratic chairman appointed a new clerk to help keep government going, even though many of the documents seized are still in the hands of investigators.

“The State Police were very helpful with us and got us the things that we need to continue doing business,” Hora said.

Despite the turmoil, town government is operating normally, but the town council president says the situation is a bit of a black eye for the town.

“This is my worst nightmare,” Hora said. “It's just this is not a fun thing to talk about. A nice community, good values here. And something's gone on, we just don't know exactly what yet.”

Many people in New Carlisle know Keck and say she is a good person.

“It's not good, it isn't good for the community and everyone here is pretty close, said Andrew Nutegren, a business owner. “I reserve judgment until I see it printed and it's a fact and it should have been a fact before it was printed.”

Keck could not be reached for comment. The prosecutor's office says it has not reviewed the case, and therefore will not comment. Keck's name will still appear on next week's ballot, because it's too late to change it. Her replacement will serve until the beginning of the year.