Ex-Fairbanks mayor pleads not guilty to new charges

Posted: Sunday, November 18, 2007

FAIRBANKS - Former Fairbanks city Mayor Jim Hayes, who has been indicted in federal court on fraud and other charges, pleaded not guilty on Friday to new charges that he filed false tax returns.

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The latest indictment alleges that Hayes submitted false tax returns to the IRS between 2001 and 2004. It does not specify how he might have misstated his income.

If convicted of filing false returns, Hayes could face a penalty of three years in prison and a fine of $100,000 on each count.

He also faces charges of conspiracy, money laundering, theft and fraud over the alleged misuse of more than $450,000 in federal grant funds awarded to a South Fairbanks social services agency Hayes and his wife, Chris, helped found. Chris Hayes was executive director.

The government alleges that the couple diverted funds from the agency to build the new Lily of the Valley Church of God in Christ, where he is pastor, and for personal use.

A trial has been scheduled for Jan. 17, 2008.

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