Monday, Jan. 18, 1988

American Notes ARIZONA

Arizona Governor Evan Mecham has faced charges of incompetence, racism and impropriety since he took office in 1987. Last week he faced more serious allegations of criminality. A grand jury indicted him on two counts of fraud and one count of filing a false report about a $350,000 loan to his 1986 < election campaign from a Tempe real estate developer. The Governor also faces three counts of perjury for not listing the loan on financial disclosure statements.

Mecham's brother Willard, who served as treasurer in his campaign, was indicted on three separate counts in the alleged scheme. Mecham reported the loan to the state last November, only after it was disclosed by reporters. The indictment was but the latest in a series of woes for the Governor, who faces possible impeachment proceedings in the Arizona legislature as well as an impending recall election.