Grand jury indicts former Yukon watershed council official

    ANCHORAGE, Alaska (AP) — A federal grand jury has indicted a 38-year-old Fairbanks man suspected of diverting $315,000 from a nonprofit group to his own businesses.

    David Michael McGraw, the former finance director for the Yukon River Inter-Tribal Watershed Council, faces counts of misapplication from an organization receiving federal funds, money laundering and making a false tax return.

    McGraw's attorney, Robert Downes, said Thursday he could not comment on the indictment.

    The council is a nonprofit organization formed by tribes along the Yukon to improve water quality.

    Federal prosecutors say McGraw directed $315,000 from the council to two corporations and used the money to buy an airplane, airplane maintenance, flight school for himself, real estate and other items.

    Prosecutors say McGraw diverted money to Clear Skies Aviation LLC and Interior Rentals LLC.

    More from News of the North

    Current Conditions

    Crude Oil Price