The Village of Glouster Police Chief was arrested Friday night, accused of obstructing justice.
The Athens County prosecutor's office executed a search warrant inside Chief Luke Mace's office.
Sources close to the investigation said significant evidence was recovered.
Village of Glouster Mayor Miles Wolf said he was beyond disappointed.
Mayor Wolf said a tip back in March led to the arrest.
He wouldn't disclose many details, and only told 10TV that the news caught the community by surprise.
"A lot of people were somewhat stunned," said Wolf.
10TV has learned Mace was investigated for theft inside the Southeastern Ohio Regional Jail in March of 2012, but no charges were filed.
Mayor Wolf said he has already appointed an acting chief pending the outcome of the investigation.
Chief Mace faces two fifth degree felony counts of Obstruction of Justice.
The mayor says this could go to grand jury as early as Tuesday.
He also said he is putting together the paperwork to place Chief Mace on paid administrative leave.
Chief Mace was released from jail Saturday after posting $10,055 bond.