Minnesota Sen. Jeff Hayden, DFL-Minneapolis, said Friday he was shocked by the federal indictment of former Community Action of Minneapolis CEO Bill Davis.

Hayden selected his wife, Terri, to serve on CAM's board on his behalf. He resigned from the board after an audit revealed that Davis had misspent about $800,000 in taxpayer money from the nonprofit organization that serves low-income residents.

“The federal indictment of Mr. Davis contains shocking allegations of deceit, retaliation, and intimidation to conceal the theft of funds intended to support low income families," Hayden said in a statement. "I am disappointed by the disruption this has caused for the organization, its staff, and the community.”

The 16-count indictment said CAM's board should have exercised better financial controls over the organization. CAM paid for Hayden and his wife, Terri, to travel to New York, which in part triggered a GOP-led Senate ethics inquiry.

Hayden was not available for further comment.