A federal grand jury has charged two former investors in a company seeking to build an ethanol plant in eastern North Carolina with conspiring to commit extortion and bribery.

David Lee Brady, 75, of Raleigh and James Albert Perry Jr., 62, of Wake Forest, were released on bond after appearing in court to face charges contained in an indictment unsealed Tuesday. Perry is a former mayor of Wake Forest.

The indictment accuses Brady and Perry of working together to bribe a state environmental regulator to expedite permits for a $220 million plant proposed by their company, Agri-Ethanol Products LLC, in Beaufort County.

The men also are accused of committing perjury before a federal grand jury last November. Brady is accused of lying to federal agents who visited his workshop in June.

Brady faces seven counts and could face a maximum of 55 years in prison. Perry faces a 45-year maximum on five counts. The two men, who were arrested Tuesday morning, said nothing during their first appearance in Raleigh federal court.

"There was no bribery and no perjury. And now it's for a jury," said Brady's attorney, Stephen Smith.