INDIANAPOLIS -- A former Indianapolis police major and City-County Council member is under investigation on accusations that he took money from an FBI agent posing as a strip club developer, a business associate told 6News.

Lincoln Plowman, a 23-year police veteran and former Republican representative for District 25 in Franklin Township, resigned from both positions on March 8, telling 6News that, "It's time for me to retire."

Plowman had been on administrative leave with pay since early February, when FBI agents confronted him with questions that he refused to answer, authorities said.

Business associate Brad Klopfenstein told 6News' Jack Rinehart on Friday that the investigation began after federal agents posing as out-of-state developers approached Plowman for help opening a high-end restaurant and strip club downtown.

Klopfenstein, a former member of the zoning board of appeals and former executive director of the Indiana Licensed Beverage Association, said Plowman turned to him for help finding a location, and that they had proposed several locations to city officials.

"There was nothing that indicated it wasn't legit," he said. "As far as I know, there were no offers to affect anything other than to find a suitable location somewhere."

During the planning process, Klopfenstein said he believes Plowman asked for and was given a consulting fee of $5,000 for his work with zoning officials.

"In situations like this, when you do consulting work, especially when you put in the number of hours that Councilor Plowman put into this, yeah, its customary to get a consulting fee," he told Rinehart.

Officials have not disclosed the nature of the investigation involving Plowman.

Klopfenstein said he doesn't believe Plowman hid anything or did anything wrong.

"It was on the up-and-up," he said. "Unfortunately, I think there's somebody who didn't like Lincoln, who turned his name in and got this investigation going, and it's ruined a good man."

Plowman has not been arrested or charged in connection with the investigation. His defense attorney, James Voyles, did not return calls for comment on Friday.

Marion County Republicans will choose Plowman's replacement on the City-County Council by caucus on Saturday. Aaron Freeman, Robert Helfrich, Devon Phillips, Tim Ping and Andrew Stephens are seeking the seat.