FALL RIVER - Fall River Mayor Jasiel Correia may be under investigation by the FBI and the Department of Housing and Urban Development.

The Herald News reports the Fall River Office of Economic Development alleged the mayor was under investigation by the federal agencies in relation to Correia's online business SnoOwl and on federal grants used for the City's re-branding campaign.

FROED President Frank Marchione read a statement at a board meeting this morning, while Mayor Correia, who is also the chairman of the organization, sat and listened without expression.

The FROED board of directors have hired a legal firm after Mayor Correia tried to break a management contract between the board and the Redevelopment Authority as a means to redirect Community Development Block Grant funding to create his own economic development department. The City Council rejected the plan, prompting Correia to hold a closed doors meeting, offering what he called a "compromise" with FROED.

Correia denied any knowledge of a federal investigation and may be hiring legal representation.