OILTON, Oklahoma - The Oilton community is having mixed reactions after OSBI agents arrested their mayor on charges of embezzlement and receiving kickbacks.

"It’s disgusting, it’s disgusting, I don't like it," said local resident Nathan Knight.  

"I could never in a million years see him doing it," said resident Tyler Frasure. 

OSBI said Kennedy knew there was $8,000 dollars left from a loan given to the city. They said he hired two Oilton Public Works Authority employees to do work.

"Give him an invoice at contractor prices, he would have those approved he would approve them.  And have those paid to these two individuals. They then would turn around, and cash the checks and give him half the money," Jessica Brown with OSBI said.  

The work included inspecting sewer line repairs and installing an air conditioner in the city sewer plant. Last summer, the Creek County District Attorney asked OSBI to look into the city's finances.

"We have ample evidence, more than ample evidence, to arrest him, we did that today," Brown said. 

And while Kennedy is facing several charges, residents of this small city are divided. 

"I grew up around him and I always saw him as a model person and I never had any kind of issues with him," said resident Tyler Frasure.  

He said he's surprised and does not believe the mayor is guilty of anything other than being in the wrong place, while others said they're just downright frustrated if these charges are true.

"It’s just not right. I mean, I've been here five years, and to know that, that's just sickening," Nathan Knight said. 

OSBI said the two employees were not arrested because Kennedy coerced them to participate based on his control over their jobs.