News 12 has learned that the Federal Emergency Management Agency has frozen millions of dollars in disaster relief payouts for storm-related damage to the Village of Highland Falls during what village officials say is an investigation into allegations of fraud and misuse of funds.

Village Mayor Joe Donofrio says a “disgruntled board member” made the claims to FEMA, which he denies. The name of the board member was not provided.

A representative for the federal agency says their “obligations” to the village are temporarily on hold but wouldn’t comment further.

Donofrio says the village has 30 projects due to back-to-back storms and flooding that were approved by FEMA and that work on them has been paused as a result. He provided documentation showing the village already received roughly $2.2 million in federal funding for the projects and says approximately $20 million is needed to complete the work.

The mayor says they welcome the investigation but that ultimately, it's a "waste of time."