The former boss of a Laborers Union local in Chicago Heights was charged Thursday with racketeering and fraud for allegedly stealing more than $470,000 in union funds for himself, his wife and a reputed mob lieutenant he installed in a top local office.

Frank B. Zeuberis, 54, was arrested at his home in St. John, Ind., and released on a $20,000 recognizance bond after an appearance in federal court in Hammond, authorities said. He will be arraigned later in U.S. District Court in Chicago.

In the mid-1990s, authorities said, Zeuberis dominated Local 5, which represented about 800 construction workers.

The racketeering count charged that on 30 separate occasions between April 1994 and October 1998, Zeuberis took unauthorized salary increases for himself and paid bonuses to himself, his wife and James A. DiForti, the alleged organized crime figure who was appointed the local's secretary-treasurer by Zeuberis.

DiForti held that post from 1994 until July 1997 when he was charged in Cook County with the 1988 murder of William Benham, who had refused to repay a $10,000 "juice" loan and threatened to tell authorities about DiForti's alleged loan-sharking activities.

DiForti died in June at age 55 before he went on trial for the murder.

A 1999 lawsuit by the Justice Department alleged DiForti was a trusted lieutenant to outfit boss John Monteleone and in charge of gambling and juice-loan and street-tax collections for the 26th Street crew.

The suit alleged DiForti had been dispatched by Monteleone to take over Local 5 and to conduct organized crime operations in the south suburbs.

Zeuberis' wife, Joann, was identified by authorities as a former part-time clerk for Local 5. She was not charged with wrongdoing.

The charges stem from an investigation initially conducted by the inspector general for the Laborers International Union of North America.

Zeuberis was charged with falsifying minutes of executive board and regular membership meetings to make it appear the salary increases, bonuses and increases in paid vacation were legitimate, authorities said.

Zeuberis was also accused of making false claims for auto repairs.

In addition to one count of racketeering, Zeuberis was charged with 11 counts of stealing union funds. As president and business manager of Laborers Union Local 5, Zeuberis dominated and controlled the local's financial affairs.