Fairbanks Man Charged for Misapplying Over $300,000 from Organization Receiving Federal Funds
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a Fairbanks man has been indicted for willfully misapplying over $300,000 from an organization receiving federal funds, among other charges.
David Michael McGraw, 38, of Fairbanks, was named in a seven-count indictment charging him with misapplication from an organization receiving federal funds, money laundering, and making and subscribing a false return.
From 2010 to 2014, McGraw was the Finance Director for the Yukon River Inter-Tribal Watershed Council (“Watershed Council”), a nonprofit corporation formed to improve and preserve the water quality of the Yukon River. The organization received federal grant money in excess of $1 million each fiscal year that McGraw was the Financial Director. According to the indictment, McGraw intentionally misapplied approximately $315,000 from the Watershed Council for his personal benefit including, among other things, the purchase of an airplane, maintenance on the airplane, flight school for himself, the purchase of real estate, more than a dozen firearms, and online pornography fees.
The indictment alleges that McGraw willfully misapplied funds from the Watershed Council by, among other methods, diverting money from the Watershed Council to two corporations set up at his direction, Clear Skies Aviation LLC and Interior Rentals LLC. McGraw used the money he diverted to these corporations to purchase and maintain an airplane and to make a down payment on real estate.
The indictment further alleges that, for the years 2011 to 2013, McGraw knowingly filed false personal income tax returns, which failed to disclose the business income from Clear Skies Aviation LLC.
If convicted, McGraw faces a sentence of up to 10 years in prison for the misapplication and money laundering charges, up to three years in prison for the false tax return charges, and a $250,000 fine.
The IRS-Criminal Investigation (“IRS-CI”) and Federal Bureau of Investigation (“FBI”), with assistance from the Environmental Protection Agency, Office of Inspector General (“EPA OIG”) and the National Science Foundation, Office of Inspector General (“NSF OIG”), conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Aunnie Steward.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.