MIAMI -- The pastor of a Liberty City church and chaplain for the City of Miami Police Department is facing grand theft charges after an investigation uncovered alleged misspending of funds earmarked for a Dr. Martin Luther King Jr. project.

The Rev. Gaston E. Smith, senior pastor of Friendship Missionary Baptist Church, was arrested after a corruption investigation by The Miami-Dade Police Department Public Corruption Investigations Bureau.

The investigation states that the non-profit corporation headed by Smith, Friends of MLK, received a $25,000 grant on June 14, 2005, from the Miami Metro Action Plan (MMAP). In July of 2005, Smith deposited the grant funds into a Washington Mutual bank account in the name of Friends of MLK, Inc., an advocacy group designed to enhance, revitalize and empower the community by addressing its urban ills, according to its mission statement.

According to the grant, the funding was to promote the principles and legacy of Dr. Martin Luther King Jr., specifically to promote the efforts of revitalizing Northwest 62nd Street, also known as Dr. Martin Luther King, Jr.

Smith's company was to use the money for development of promotional material for a community outreach campaign, to design and implement a Web site to promote local efforts, to coordinate an MLK fundraising reception, and coordinate a senior-citizen garden.

The investigation found that Smith withdrew $10,356.50 in ATM cash withdrawals at various locations throughout Miami-Dade County, Broward County, Orlando, Texas, and Las Vegas.

One of the ledger items included a more than $500 bar bill at Las Vegas.

It also alleges Smith spent $5,076.73 to purchase airline tickets, car rentals, hotel accommodations, and used money for classes at the University of North Florida.

The balance of the grant is still being investigated, but officials said it was used for various other purchases not connected with the grant.

Meanwhile, a Friends of MLK board member told investigators that the agency had not applied for or received the grant. Another board member was asked by Smith to sign blank checks that required two signatures.

Smith also had an ATM card to withdraw funds from Friends of MLK, which board members said they were not aware Smith had access to.

Investigators said he also obstructed the investigation by withholding records that were subpoenaed.

Smith's attorney said the clergyman is innocent.