Kentucky State Police say Karen Eaton was arrested Nov. 29 around noon and is lodged in the Simpson County Jail.
The Attorney General's Office says Eaton was indicted on two counts of theft by unlawful taking or disposition over $300, which is a Class-D felony.
KSP conducted an 11 month investigation into irregularities at the Simpson County Chamber of Commerce, during Eaton's tenure as executive director.
Eaton is also suspected of taking grant money from the State Dept. of Agriculture.
Eaton will be arraigned Dec. 7 in Frankfort.
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