UPDATE 4/19/12
RICHWOOD, W.Va. (WSAZ) -- The City of Richwood, in Nicholas County, will have a new interim mayor Thursday evening.

Recorder Lois Schoolcraft will take over the seat for John McClung who resigned earlier this week after a plea deal in a fraud case.

WSAZ.com spoke with Schoolcraft Thursday, who says she will serve as interim mayor until June 30.

A city election will be held June 5 to choose the next mayor.

Schoolcraft tells WSAZ.com that she and city council plan to work as a team and are ready to move forward and put Richwood back in a positive light.

Schoolcraft will be sworn in during Thursday night's City Council meeting which starts at 7 p.m.

Former Mayor John McClung resigned this week, as part of a plea deal in a fraud case.

Earlier this month, McClung pleaded no contest to a misdemeanor charge of obtaining money, goods, property or services by false pretenses.

Two felony charges were dropped as part of the deal.

According to court paperwork, McClung had to resign from office at 12 a.m. on April 16. He is also not permitted to seek public office in the future.

State Police said McClung abused his position as mayor to steal thousands of dollars in cash. They said Mayor McClung received a $2,500 check from a business in the area. Some of that money was to go to a family in need to help them pay a water bill. Troopers said McClung paid the bill, but they believe he kept thousands of dollars for himself.

McClung was sentenced to six months in jail, but that was suspended and he will spend that time on home confinement. He also has pay the City of Richwood $2,500 in restitution.

WSAZ.COM has contacted the City of Richwood for the proceedings on filling the mayor's seat.

"This is part of a larger investigation that began in November of 2011 after a referral by the WV ethics commission," WVSP Sargent Michael Baylous said. "It was a complicated situation."

Troopers said McClung abused his position as mayor to steal thousands of dollars in cash. They said Mayor McClung received a $2,500 check from a business in the area. Some of that money was to go to a family in need to help them pay a water bill. Troopers said McClung paid the bill, but they believe he kept thousands of dollars for himself.

"We believe he wrote a check on the city bank account," Sgt. Baylous said. "And received some cash back from writing that check."

Troopers would not say the exact amount, but believe McClung took "a little more than $2,000."

We stopped by Richwood City Hall to speak with Mayor McClung, but he declined speaking on camera. He said he's been advised by his attorney to not say anything. However, one city councilman wasn't holding back.

"It doesn't surprise me," Richwood City Councilman James Vannoy said.

Vannoy drove to city hall Thursday in hopes of speaking with the mayor. He said the city has struggled under McClung's leadership, and the only solution is for the mayor to step down.

"I think he should be suspended," Vannoy said. "They're innocent until proven guilty, but for the benefit of the city, he should step down until he goes to court and this is clarified."

State Police said the investigation is on-going, and more charges could be filed.

UPDATE 2/2/12 @ 3:30 p.m.
NICHOLAS COUNTY, W.Va. (WSAZ) -- The mayor of Richwood is facing criminal charges after police say he misused town money.

According to the criminal complaint, John D. McClung, mayor of Richwood, W.Va., received a $2,500 check from a local company to help a family in need back in July of 2010. The money was meant to help the family pay their water bill.

McClung deposited the $2,500 check into the city's "Rails to Trails" checking account. Then, provided the family with a check, for the same amount, that was written from the city's account, according to the criminal complaint.

The family was told to cash the check and bring the money back to the mayor and he would pay the water bill. According to the criminal complaint, the family went and cashed the check, brought the money back to McClung and he, in turn, paid the water bill.

Although the family did get the water bill paid -- the remainder of the $2,500 was never deposited back into the city's "Rails to Trails" checking account.

According to the criminal complaint, no deposits have been made into the city's account, the investigating officer was unable to find the leftover money and the family says they never received the rest of the money.

Mayor McClung is facing charges of fraudulent schemes and obtaining on false pretenses.

Troopers say the arrest stems from a larger investigation that began in November of 2011, following a referral from the West Virginia Ethics Commission.

They say the investigation is ongoing and more charges may be filed.

McClung’s preliminary hearing has been scheduled for February 8, 2012, in Nicholas County Magistrate Court.

WSAZ.com has contacted Mayor McClung and he declined our interview request. He says his attorney has advised him not to make a statement.

Keep clicking on WSAZ.com for the latest information.

According to the incident report, McClung was arrested on charges of fraudulent scheme and false pretenses involving the improper usage of town monies.

Police say the arrest was made on February 1, following a lengthy investigation.

No other details are being released at this time.

WSAZ.com contacted Mayor McClung and he declined our interview request. He says his attorney has advised him not to make a statement.

Keep clicking on WSAZ.com for the latest information.