NEW JOHNSONVILLE, Tenn. – A local mayor who was the focus of a NewsChannel 5 investigation now faces a felony theft charge.
New Johnsonville Mayor Lance Loveless was indicted by the Humphreys County Grand Jury on Monday.
He turned himself in Wednesday night and posted bond.
A special investigation by the Tennessee Comptroller's Office confirmed what NewsChannel 5 Investigates first reported in July -- that Loveless used city resources and money to pick up his personal truck.
In July, Mayor Loveless told NewsChannel 5 Investigates he did nothing wrong.
"I don't see a problem with it and no one else does either," Loveless said while standing beside his pick-up truck.
But the grand jury indicted him on one county of theft over $1,000.
The New Johnsonville City Council asked the Tennessee Comptroller's Office to review receipts from a 2012 trip to South Carolina after our story aired in July.
"Certainly your story on Channel 5 alerted folks to this occurrence," said John Dunn who is spokesman for the Comptroller's Office.
In September 2012, New Johnsonville's public works manager took a city truck and a gas card and went to Columbia, South Carolina.
He began towing a used pick up truck that the mayor had purchased back to New Johnsonville.
NewsChannel 5 Investigates asked the Mayor in July, "Did you send a city employee to South Carolina to pick up your truck?"
Mayor Loveless responded, "He was actually, yea, it was, but he was on his own time."
Our investigation and the Comptroller's found the city's public works director was not on his own time.
"It's clear from our investigation that the mayor was using city resources for his own personal benefit," John Dunn said.
Mayor Loveless claimed he didn't know the public works director took a city truck, but the Public Works Director told the Comptroller he was following the mayor's orders.
When the city truck broke down near the North Carolina border, things began to unravel.
NewsChannel 5 Investigates asked Loveless in July, "When the city truck broke down, what happened?"
Loveless responded, "I really don't recall to be honest with you."
City records show the mayor had the truck towed more than 300 miles to Madison, Tennessee -- charging taxpayers $990.
Then the city paid $5,500 to replace the engine in the city truck.
The Comptroller's report said the mayor did not tell his own city council about the details of the trip and repair to the city truck.
"The mayor admitted he tried to conceal the nature of the trip which is a concern to our office," Dunn said.
He presented an ordinance to the council that stated the truck broke down and was towed to the nearest "Dodge dealer" where it was repaired.
NewsChannel 5 Investigates asked, "It was not towed to the nearest Dodge dealership, it was towed across the state."
Loveless responded, "Across the state?"
NewsChannel 5 Investigates showed him the receipt, "This towing company is from Knoxville, Tennessee."
Loveless responded, "Okay, well it broke down where it was at."
Back in July the mayor insisted his conscious was clear.
NewsChannel 5 Investigates asked, "You don't see anything wrong with that? It seems like a nice little perk for the mayor."
Loveless responded, "Nope I don't see anything wrong with it."
The mayor paid back some of the money after our report aired.
He was officially charged with taking over $1700.
Mayor Loveless did not return our calls.
City council members are discussing whether to remove him from office.
