Law enforcement carried out raids at homes in Phillipsburg, Middlesex Borough and Linden, netting five arrests and recovering drugs, guns and a large amount of cash.
The National Center for Missing and Exploited Children was tipped off in January that material was being distributed on the messaging Kik somewhere in the Phillipsburg area.
Town Council President Frank McVey told police he wanted to make sure the town was safe and he was "in charge" since the town's leadership had not been heard from.
The two math teachers have been placed on administrative leave and are prohibited from district property after threatening to reveal "embarrassing information" about a district employee.