(CNN) Dennis Tyler, the Democratic mayor of Muncie, Indiana, was indicted Monday on a charge of accepting a $5,000 bribe, according to the US Attorney's Office.

Tyler accepted the bribe in exchange for awarding contracts to a company from Gaston, Indiana, that performs demolition, excavation and construction projects for Muncie, according to the indictment. The mayor faces up to 10 years in federal prison if convicted.

"Tyler not only betrayed the trust of his community, but violated federal law, and all in an effort to serve his own personal interests," said Josh J. Minkler, acting US attorney for the Southern District of Indiana.

Authorities arrested Tyler, 76, at his home Monday morning, according to the FBI.

He is currently in FBI custody, according to Chris Bavender, spokeswoman with the FBI in Indianapolis. Tyler made a court appearance Monday afternoon in a federal courtroom in Indiana, a US Attorney's office news release said.

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