Murbarger was arrested on a murder warrant outside his workplace Wednesday, according to the sheriff's office. Investigators then served a search warrant at Murbarger's residence at the Lakewood West apartment complex in Evansville.
Murbarger was held at the Vanderburgh County Jail pending extradition to Illinois.
The Wayne County, Illinois grand jury indicted Murbarger on six separate charges, including three counts of first-degree murder, one count of concealment of a homicidal death, and two counts of home invasion, the Navigator reports.
The skeletal remains were found in a shallow grave south of Fairfield, and the manner of death was determined to be homicide, the Albion Navigator reports.
Nichols was last seen on July 3, 2014 in Fairfield, Ill. The high school sophomore was a good student and avid church member.
Her phone was found in her bed -- it been wiped cleaned, with all photos, messages, contacts deleted. In her room, Megan's mother and grandmother found a note from Megan.
"Basically it said, 'Mom, I love you but I'm never going to be happy here. Don't come looking for me 'cause why spend a lifetime looking for somebody that doesn't wanna be found,'" said Megan's mother Kathy Jo Hutchcraft. The writing appears to be Megan's, but the words are not, according to her mother.
"Money had been withdrawn on July the 3rd around 2 o'clock p.m.," said Hutchcraft. "That's the same time Megan went on a bike ride earlier in the day before she went home not feeling well. The last images of Megan were from this ATM surveillance video. It showed her riding her bike up to the bank, withdrawing money. That was right before she vanished."