Ex-Mayor of Fairbanks, Alaska, Indicted

ANCHORAGE, Alaska -- The former mayor of Fairbanks and his wife were indicted Wednesday on charges of funneling more than $450,000 in federal grants to fund construction of a church where he is the pastor.

Jim and Chris Hayes are also accused of using the federal money _ meant for low-income youth _ to buy a plasma TV for their home, pay for a family wedding reception and cover other personal bills.

The 92-count indictment says the couple diverted government funds awarded to a local social services center run by Chris Hayes to pay for construction and furnishings for a church founded by her parents. Charges against them include money laundering and illegal application of government grants.

Assistant U.S. Attorney Karen Loeffler said the couple had not been arrested. Loeffler is seeking a court summons, saying the two are not considered a flight risk.

"They're longtime residents of Fairbanks," she said. "They've known about the investigation."

Calls to the couple Wednesday evening were not immediately returned.

Jim Hayes, 61, is a member of the University of Alaska Board of Regents and was mayor of Alaska's second-largest city from 1992 to 2001.

The charges come a year after federal agents searched the Hayes home, the Lily of the Valley Church of God in Christ and the LOVE Social Services Center.

According to the indictment, Chris Hayes, 56, had her organization write checks for cash that she then used for money orders and cashier's checks.