CANBY, Ore. -- City officials said Monday that the Canby police chief had been placed on paid administrative leave after allegations of official misconduct surfaced in a newspaper report Sunday.

An FBI drug investigation led to a major shake-up in the Canby Police Department.

Police Chief Greg Kroeplin was placed on administrative leave by the city administrator after a report in The Oregonian alleged that another police organization tipped off Kroeplin that one of his officers had been buying illegal steroids while on duty.

Officials said Kroeplin may have ignored evidence that the officer was buying and using illegal steroids.

The case all started in July when FBI agents raided a man’s home and found canisters of illegal steroids.

Officials said the man eventually revealed that he’d been selling the drugs to former Canby Officer Jason Deason.

Deason was a well-known motorcycle cop and the informant claimed that Deason would often drive over in uniform to pick up the drugs.

During this time, neighboring police agencies apparently warned Kroeplin about Deason’s drug use.

Sources said that Kroeplin didn't follow up on those accusations, but the FBI did.

The FBI investigation uncovered a close relationship between Kroeplin and Deason, which allowed Deason to tip off his suppliers about up-coming search warrants.

People in Canby said these allegations are a big let down for the whole community.

“This issue of using drugs to enhance people’s lives has been something that’s plagued an awful lot of society. So the fact that it would hit us here in Canby is not surprising, but it is very disappointing,” Canby resident Jim Dodge said.

Canby police said they are searching for an outside agency to head up the investigation and find out what really happened.

Canby Human Resources Director Amanda Clock released a statement from the city that said the city takes any allegation of employee misconduct seriously and Kroeplin will remain on paid administrative leave through the end of the investigation.

"The city understands the importance that the community maintains the trust in the integrity of the Canby Police Department that it has worked so long and hard to earn over the years. To this end, the city administrator has ordered that the personnel investigation be carried out by an independent third-party entity as soon as possible," according to the release.

The city won't be releasing any other comment about the situation until the investigation is over, Clock said.

“They’re supposed to be setting an example for everyone and picking up other people on steroids, I don’t think an officer should be on it,” said Audrey Bettendorf who lives near Canby.

Police Chief On Leave In Steroids Probe