The indictment against veteran New York state Sen. Shirley Huntley accuses her of conspiring in a scheme to use state grants to benefit associates in a nonprofit group she founded.
The 20-count indictment also charges leaders of the organization called The Parent Workshop with grand larceny. It's based on an investigation by New York Attorney General Eric Schneiderman's office.
Huntley walked out of the Office of the Attorney General in Mineola, Long Island in handcuffs Monday morning as a crowd of supporters chanted her name.
The senator's supporters said they would support Huntley regardless of the charges.
"Shirley says she did nothing wrong, so we believe her," said Bishop Charles I. Norris, from the Bethesda Missionary Baptist Church.
The indictment says the Queens Democrat covered up fraudulent use of the state money. Huntley had secured a $30,000 grant in 2006 for the group, which was formed to help parents work effectively with the New York City school system.
Huntley said Monday morning that the case will prove her innocence.
Senate Democratic leader John Sampson is expected to strip Huntley of her $9,000 stipend.
She faces a tough Sept. 13 primary.