MOUNDS, ILLINOIS - From serving the people to scamming them.  That's what federal investigators say former Mounds City Council member Zachary Hannan did.

Federal authorities arrested him yesterday in Mounds, Illinois for lying to investigators and misusing government funds.  He was arraigned later that day at the federal courthouse in Benton.

A grand jury charged Hannan with one count of making a false statement to the Department of Justice and another count of the misapplication of property under the care of a local government receiving federal funds.

It's unclear exactly how much is missing, but his problems began when he told investigators he had $90,000 in an account to replace the money, when he knew he actually had less than 50.   Local 6 spoke briefly to Hannan at his home in Mounds, but he didn't want to discuss the case.
   
Neighbors say the former city council member operated a business called prime distribution out of a home on Blanche Street in Mounds.  The company was a purchasing agent for the Pulaski County Sheriff's Office.  Investigator's say Hannan's firm was supposed to use federal grant money to supply the department with equipment involved with meth enforcement, but according to published reports, the Pulaski County Sheriff's Office says their orders came up short, and the money wasn't returned, so they contacted the FBI.
    
According to court documents, when confronted by an agent, Hannan lied about replacing the missing grant money and intentionally misapplied thousands of dollars worth of goverment property.

The FBI tells Local 6 if convicted, Hannan could face up to ten years in a federal prison.  Hannan is due back in court next month.  A jury trial is set for December 21st.