The former Mercedes city attorney was arrested Thursday and pled not guilty to a charge of federal program theft.

According to the indictment against him, Juan R. Molina is accused of embezzling, stealing or obtaining by fraud at least $5,000 from a federal program from May 2017 to July 2019.

Molina served as Mercedes city attorney from August 2004 to February 2019, according to a city spokesperson.

The funds were deposited to a trust account Molina used in reference to potential real estate development in or around the city of Mercedes, the indictment stated.

"The city of Mercedes will continue to cooperate with federal officials as we seek justice for Mercedes," city public information officer Brianna Casares said in a statement.

Molina is currently out on bond, court records show.