The mayor of the Town of Mills on Wednesday denied she told its employees to not cooperate with an investigation of the town's treasurer who was arrested for embezzlement last week.

"No I did not," Marrolyce Wilson said after the town council meeting.

Last week, the Wyoming Division of Criminal Investigation arrested Lisa Whetstone. She was charged with two counts of grand theft, and failing as a public servant to account for, deliver and pay over property received by virtue of the office.

Whetstone was placed on unpaid administrative leave.

The case began in January 2015 when the Wyoming Department of Audit began an audit of the town's books and found irregularities. The DCI investigated and found Whetstone allegedly embezzled more than $64,000 for more than two years ending in October 2015, according to agent Len Propps' sworn affidavit filed in Natrona County Circuit Court.

After Propps told Wilson that Whetstone was the primary suspect in October, he wrote the two officials told employees they would be disciplined and placed on probation if they cooperated with law enforcement. Propps wrote the employee who let him in the Town Hall because he had a search warrant was disciplined and placed on probation.

Wilson flatly denied did that.

"No I have not done that," she said. "I think maybe she (the employee) was maybe talked to, but I don't think she was ever placed on disciplinary, no disciplinary action was taken."

When asked if she disagreed with what Propps wrote, Wilson then referred questions to the town's attorney.

Wednesday, the town council appointed town employee Dawn Kopp as interim treasurer, and Wilson administered the oath of office to her.

The town will be taking applications for a new treasurer, Wilson said.

During the meeting, council adopted two measures to tighten its financial policies.

The town treasurer will need authorization from the council and the mayor by vote to remove any funds, and will need to make quarterly rather than annual reports to the council.