Key, 73, pleaded guilty Wednesday to 1 felony count of malfeasance in office in front of 2nd Judicial District Judge Glenn Fallin.
In May 2013, a state legislative audit found that Gibsland financial records were missing and that the town owed $80,000 to the Internal Revenue Service.
While a criminal investigation was ongoing, the Attorney General's Office assisted in the appointment of a fiscal administrator who began working in November towards getting the town's finances in order. Key was later arrested in December for malfeasance in office.
Key's sentencing is scheduled for May 9.
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