An intelligence document listing republicans was lost by one police officer and found in the garden of another.
The SDLP has voiced concern at the bizarre sequence of events as a public meeting was held to discuss the warning given to six men named on the document.
The six were visited by police last month and warned to increase their security.
They are all are connected to an independent republican flute band based in Bellaghy, Co Derry.
Two are also members of the IRSP while several have links to the Irish Republican Prisoners’ Welfare Association.
Police have said the document contained "personal details of a small number of people."
It is believed 34 people live at the eight addresses contacted by police with many of those attending the meeting.
Independent Causeway Coast councillor Padraig McShane, Derry and Strabane independent councillors Paul Gallagher , Gary Donnelly and Warren Robinson attended the meeting on Tuesday.
East Derry assembly member John Dallat, who did not attend the meeting, said he was told by a senior PSNI officer that the lost document blew away as an officer was stepping from a police car.
It is suggested the document was later found in the garden of an off duty police officer where it had apparently blown.
The officer then returned the document to Ballymoney PSNI station.
Mr Dallat said he was told that PSNI officers were then sent to the homes of the people whose names appeared on the document to warn them.
While returning from this task the officers called at the home of a leading loyalist in connection with what Mr Dallat was told was "unrelated business".
The SDLP man, who is stepping down from the assembly, said he is concerned by the development.
He said it would have been more serious "if it had not been an off duty cop that found it."
"If loyalists around the Ballymoney area, of which there are plenty and dangerous, had got their hands on it….I imagine the Police Ombudsman will take that into account."
A spokesman for the PSNI said: "As this has been referred to the Police Ombudsman's office it would be inappropriate to comment any further. No inference should be drawn from this."
Councillor Gary Donnelly offered his support to the men and their families and said he has "been the victim of numerous death threats and it can be a lonely place."
Rasharkin Residents Collective spokesman Sean Hanna said a series of protests and pickets would be organised in the area in the coming weeks.
