Fairbanks Man Indicted for Misapplication of $315,000

It was announced on Thursday that the former Finance Director for the Yukon River Inter-Tribal Watershed Council has been indicted on several charges concerning misapplications of federal funds by a grand jury this week.

38-year-old David Michael McGraw of Fairbanks was indicted on charges of misapplication from an organization receiving federal funds, money laundering, and making and subscribing a false return, U.S. Attorney Bryan Schroder of the Justice Department said in a statement.

According to the investigation conducted by the IRS, FBI, EPA, and the National Science Foundation, McGraw used federal funds allocated to the Watershed Council from 2010 to 2014 for the purchase and maintenance of an airplane, flight school, bought real estate, purchased more than a dozen firearms and paid his online pornography fees.

He utilized two corporations, Clear Skies Aviation LLC and Interior Rentals LLC, set up at his direction, to funnel a portion of the $1 million allocated to the  Watershed Council each year. All in all, the investigators say he misapplied approximately $315,000 of the fund’s monies.The indictment also alleged that from 2010 until 2013, McGraw also knowingly filed false personal income tax returns that failed to disclose the business income from Clear Skies Aviation LLC.

The Justice Department says that McGraw faces a sentence of up to 10 years for the misapplication and money laundering charges, and up to three years for the false tax return charges with a $250,000 fine.