JOHNSON COUNTY, Tenn. (WJHL) – After an investigation by the Tennessee Comptroller’s Office, two Mountain City employees have been charged with felony misconduct.

According to City Mayor Jerry Jordan, City Recorder Sheila Shaw is facing a charge of Official Misconduct and former city hall clerk Donna Nelson is facing charges of theft between $2,500 and $10,000 as well as official misconduct.

In a grand jury indictment handed down Friday, Shaw and Nelson were accused of an “unauthorized exercise of official power” as a result of an investigation by state prosecutor Zach Perkey. Nelson was also charged with the theft of $3,629, a Class D felony within the state of Tennessee.

According to Mayor Jordan, Nelson resigned from her position with the city in late 2021, and Shaw’s employment status is still being determined by the city.

As part of the investigating team, the Tennessee Comptroller’s office confirmed with News Channel 11 that additional details will be released regarding the charges.

Nelson and Shaw were both arrested, and an arraignment has not yet been announced. According to indictment documents, Shaw’s bond is set at $3,000 and Nelson’s is $10,000.

The Mountain City Board of Mayor and Aldermen is scheduled to meet in a special called session at 9 a.m. Thursday. It will be a closed session meeting. It is unclear if the meeting is related to the arrests.