An indictment was handed down against Mount Vernon Mayor Clarice Kirby Friday afternoon.
Officials say it stems from her allegedly buying alcohol for work release inmate and allegedly taking them to Richmond and allowing them to drink.
She's also accused of using public money and equipment to clean up a burned-down house outside of Rockcastle county, and allegedly paying two city employees in the process.
State police have been investigating her since June.
After searching for Mount Vernon Mayor Clarice Kirby for most of Friday evening, she was located at her sister's house and surrendered peacefully.
Kirby is charged with abuse of public trust, official misconduct, bribery and fradulent insurance acts.
Current city employee Henry Stewart and former city employee Jonathan Parsons also have warrants out for their arrests.
The mayor will have a $35,000 cash or property bond.