A city mayor has been charged with stealing almost $250,000 (£190,000), which FBI investigators claim he used to pay for a new Mercedes, jewellery, as well as casino visits and his student loan debt.

Police say Jasiel Correia he collected the money from investments for his SnoOwl app, which was pitched as a platform to help local businesses connect with consumers.

But instead of using it for the business, Correia, who was first elected as mayor of Fall River, Massachusetts at the age of 23, used the money to fund a lavish lifestyle.

Investigators said he spent $231,447 (£175,477) of the $360,000 (£273,535) he collected on the car, casinos, adult entertainment, jewellery for an ex-girlfriend and pay down student loan debt.

The Democrat, who is of Cape Verdean descent, made history back in 2015 when he became the youngest person to be elected mayor in the city of about 85,000 people.

The 26-year-old has now been charged with wire fraud and filing false tax returns following a federal investigation.

‘‘His actions were underhanded, shameless and greedy,’’ said FBI agent Hank Shaw. ‘‘Mr. Correia blurred the lines between public business and private duties, using investor funds as his own personal ATM, systemically looting almost a quarter-million dollars.’’

Mr Correia was all smiles and even gave a thumbs up as he exited Boston’s federal court after pleaded not guilty to all ‘bogus” allegations levelled against him, telling reporters he believes he will be vindicated.

“I look forward to my day in court to share my side of the story and to clear my name,’’ he said in a written statement.

After his arrest, proclaimed his innocence in a statement and said he had no intention of resigning.