A lifelong Greenwood Lake resident and local boat mechanic is facing felony charges following his arrest for allegedly sexually exploiting and abusing a child.

Matthew Morton, 42, was arrested by Greenwood Lake police Tuesday and charged with possessing a sexual performance by a child, using a child in a sexual performance, sexual abuse and endangering the welfare of a child. Authorities allege the incidents happened over several days in April.

News 12 has learned Morton worked as a local boat mechanic at a village marina.

His former boss told News 12 he is “shocked and disgusted” by the allegations and said Morton has since been fired.

Neighbors who know Morton say they’re struggling to process the allegations.

“I am completely disgusted by the entire situation,” said Katherine Palombi, who said she’s known Morton for about 15 years. “Everybody is just shocked. Completely.”

Palombi says the allegations are especially difficult to comprehend because of Greenwood Lake’s close-knit community.

“It’s just hard to imagine having a pedophile in your backyard because Greenwood Lake is such a tight-knit town,” she said. “It’s sickening. Very sick.”

Morton pleaded not guilty during his arraignment in Village of Greenwood Lake Court and was remanded to the Orange County Jail without bail.

The Orange County District Attorney’s Office told News 12 the case is pending grand jury review. As of Friday afternoon, Morton is due back in Village of Greenwood Lake court Monday.