Carlos Bustamante said the accusations are untrue, and he expects an investigation will prove him right.
Bustamante is also an executive manager with Orange County's Public Works Department.
No details of the allegations have been released, but the councilman released his own statement:
"I strongly deny the vicious and hurtful rumors surrounding my employment with the County of Orange. My family and I are confident that the investigation will disprove them and I am looking forward to returning to work."